Chapter 009
2012 -- S 2244
Enacted 02/13/12
A N A C T
AUTHORIZING THE
TOWN OF
Introduced By: Senators Sheehan, and Hodgson
Date Introduced: January 26, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. The Town of
authority previously granted, to issue bonds to an amount not
exceeding Six Million Four Hundred
Sixty Five Thousand Dollars
($6,465,000) from time to time under its corporate name and seal or a
facsimile of such seal. The bonds of each issue may be issued
in the form of serial bonds or term
bonds or a combination thereof and shall be payable either
by maturity of principal in the case of
serial bonds or by mandatory serial redemption in the case
of term bonds, in annual installments of
principal, the first installment to be not later than five
years and the last installment not later than
thirty years after the date of the bonds. For each issue the
amounts payable annually for principal
and interest combined either shall be as nearly equal
from year to year as is practicable in the opinion
of the officers authorized to issue the bonds, or shall
be arranged in accordance with a schedule
providing for a more rapid amortization of principal.
SECTION 2. The bonds shall be signed by the manual or
facsimile signatures of the
town treasurer and the president of the Town Council and
shall be issued and sold in such
amounts as the Town Council may authorize by resolution. The
manner of sale, denominations,
maturities, interest rates and other terms, conditions and
details of any bonds or notes issued
under this act may be fixed by the resolution of the Town
Council authorizing the issue or by
separate resolution of the Town Council or, to the extent
provisions for these matters are not so
made, they may be fixed by the officers authorized to sign
the bonds or notes. The proceeds
derived from the sale of the bonds shall be delivered to the
town treasurer, and such proceeds
exclusive of premiums and accrued interest shall be expended
for: (a) Replacements and
renovations and related equipment for the
payment of the principal of or interest on temporary notes
issued under Section 3 of this act; or
(c) In repayment of
advances under Section 4 of this act. No purchaser of any bonds or notes
under this act shall be in any way responsible for the
proper application of the proceeds derived
from the sale thereof. The projects shall be carried out
and all contracts made therefor on behalf
of the Town by a School Building Committee appointed by
the Town Council or as may be
otherwise directed by the Town Council. The proceeds of bonds
or notes issued under this act,
any applicable federal or state assistance and the other
monies referred to in Section 6 of this act
shall be deemed appropriated for the purposes of this act
without further action than that required
by this act. The bond issue authorized by this act may
be consolidated for the purposes of
issuance and sale with any other bond issue of the town
heretofore or hereafter authorized,
provided that, notwithstanding any such consolidation, the proceeds
from the sale of the bonds
authorized by this act shall be expended for the purposes set
forth above.
SECTION 3. The Town Council may by resolution authorize the
issue from time to time of
interest bearing or discounted notes in anticipation of the
authorization or issue of bonds or in
anticipation of the receipt of federal or state aid for the
purposes of this act. The amount of original
notes issued in anticipation of bonds may not exceed the
amount of bonds which may be issued
under this act and the amount of original notes issued in
anticipation of federal or state aid may not
exceed the amount of available federal or state aid as
estimated by the treasurer. Temporary notes
issued hereunder shall be signed by the treasurer and by the
president of the Town Council and shall
be payable within five years from their respective
dates, but the principal of and interest on notes
issued for a shorter period may be renewed or paid from time
to time by the issue of other notes
hereunder, provided the period from the date of an original
note to the maturity of any note issued to
renew or pay the same debt or the interest thereon shall
not exceed five years.
SECTION 4. Pending any authorization or issue of bonds
hereunder or pending or in lieu of
any authorization or issue of notes hereunder, the
treasurer, with the approval of the Town Council,
may, to the extent that bonds or notes may be issued
hereunder, apply funds in the treasury of the
Town to the purposes
specified in Section 2, such advances to be repaid without interest from the
proceeds of bonds or notes subsequently issued or from the
proceeds of applicable federal or state
assistance or from other available funds.
SECTION 5. Any proceeds of bonds or notes issued hereunder
or of any applicable federal
or state assistance, pending their expenditure may be
deposited or invested by the treasurer, in
demand deposits, time deposits or savings deposits in banks
which are members of the Federal
Deposit Insurance
Corporation or in obligations issued or guaranteed by the
law of the State of
SECTION 6. Any accrued interest received upon the sale of
bonds or notes hereunder shall
be applied to the payment of the first interest due
thereon. Any premiums arising from the sale of
bonds or notes hereunder and any earnings or net profit
realized from the deposit or investment of
funds hereunder shall, in the discretion of the treasurer,
be applied to the cost of preparing, issuing
and marketing bonds or notes hereunder to the extent not
otherwise provided, to the payment of the
cost of the projects or to the cost of additional
improvements coming within the description of the
projects in Section 2 of this act, to the payment of the
principal of or interest on bonds or notes issued
hereunder or to any one or more of the foregoing. The cost of
preparing, issuing and marketing
bonds or notes hereunder may also, in the discretion of the
treasurer, be met from bond or note
proceeds exclusive of accrued interest or from other monies
available therefor. Any balance of bond
or note proceeds remaining after payment of the cost of
the projects and said additional
improvements and the cost of preparing, issuing and marketing
bonds or notes hereunder shall be
applied to the payment of the principal of or interest on
bonds or notes issued hereunder. In
exercising any discretion under this Section, the treasurer
shall be governed by any instructions
adopted by resolution of the Town Council. The treasurer is
authorized to take any action deemed by
him or her necessary: (1) To assure that interest on the
bonds or notes issued hereunder remains
excludable from gross income of the recipients thereof for
federal income tax purposes, including,
without limitation, paying to the federal government any
rebate of earnings derived from the deposit
or investment of the proceeds of such bonds or notes
that may be required therefor; (2) To comply
with the requirements of federal law, including without
being limited to regulations and other
requirements of the Securities and Exchange Commission and the Municipal
Securities Rulemaking
Board, imposed directly on
the Town or on the underwriters of such bonds and notes; and/or (3) To
comply with the provisions of §§ 16-7-35 to 16-7-47 of the
Rhode Island General Laws, 1956,as
amended; including making all necessary contracts and
agreements to issue said bonds and/or
notes through the Rhode Island Health and Educational
Building Corporation.
SECTION 7. All bonds or notes issued under this act and the debts
evidenced thereby shall
be obligatory on the town in the same manner and to the
same extent as other debts lawfully
contracted by it and shall be excepted from the operation of
Section 45‑12‑2 of the General Laws.
No such obligation shall at
any time be included in the debt of the town for the purpose of
ascertaining its borrowing capacity. The town shall annually
appropriate a sum sufficient to pay the
principal and interest coming due within the year on bonds and
notes issued hereunder to the extent
that moneys therefor are not
otherwise provided. If such sum is not appropriated, it shall
nevertheless be added to the annual tax levy. In order to provide
such sum in each year and
notwithstanding any provision of law to the contrary, all taxable
property in the town shall be subject
to ad valorem taxation by the town without limitation as
to rate or amount.
SECTION 8. Any bonds or notes issued under the provisions of
this act, if properly
executed by officers of the town in office on the date of
execution, shall be valid and binding
according to their terms notwithstanding that before the
delivery thereof and payment therefor
any or all of such officers shall for any reason have
ceased to hold office.
SECTION 9. The town, acting by resolution of its Town Council
is authorized to apply for,
contract for and expend any federal or state advances or other
grants or assistance which may be
available for the purposes of this act, and any such
expenditures may be in addition to other moneys
provided in this act. To the extent of any inconsistency
between any law of this state and any
applicable federal law or regulation, the latter shall prevail.
Federal and state advances, with interest
where applicable, whether contracted for prior to or after
the effective date of this act, may be repaid
as project costs under Section 2.
SECTION 10. Bonds and notes may be issued under this act
without obtaining the approval
of any governmental agency or the taking of any
proceedings or the happening of any conditions
except as specifically required by this act for such issue.
In carrying out any project financed in
whole or in part under this act, including where applicable
the condemnation of any land or interest
in land, and in the levy and collection of assessments
or other charges permitted by law on account of
any such project, all action shall be taken which is
necessary to meet constitutional requirements
whether or not such action is otherwise required by statute;
but the validity of bonds and notes issued
hereunder shall in no way depend upon the validity or
occurrence of such action. To the extent of
any inconsistency between this act and the Town Charter,
this act shall prevail.
SECTION 11. The question of the approval of this act shall be
submitted to the electors of
the town at an election to be held on April 3, 2012 or
such later date as may be determined by the
Town
Council. The question shall be
submitted in substantially the following form: "Shall an act,
passed at the 2012 session of the General Assembly, entitled
‘AN ACT AUTHORIZING THE
TOWN OF
AND RELATED EQUIPMENT FOR
THE
FISHING COVE,
AND TO ISSUE NOT MORE THAN
$6,465,000 BONDS AND NOTES THEREFOR' be
approved?" and the warning for the election shall contain
the question to be submitted. The Town
Board of Canvassers may
combine any two or more voting districts for the election and when so
combined shall be treated as a voting district. If so
combined, the Town Board of Canvassers shall
advertise the combination of districts in a newspaper of
general circulation in the Town. From the
time the election is warned and until it is held, it shall
be the duty of the Town Clerk to keep a copy
of the act available at his or her office for public
inspection, but the validity of the election shall not
be affected by this requirement.
SECTION 12. This Section and Section 11 shall take effect
upon passage. The remainder
of this act shall take effect upon the approval of this
act by a majority of those voting on the question
at the election prescribed by Section 11.
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LC00831
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