Introduced By: Representatives Rabideau, Lowe and Carroll
Date Introduced : May 14, 1998
It is enacted by the General Assembly as follows:
SECTION 1. The Pascoag fire district is hereby empowered, in addition to authority previously granted, to issue bonds to an amount not exceeding one million five hundred thousand dollars ($1,500,000) from time to time under its corporate name and sale. 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 three years and the last installment not later than ten 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 more rapid amortization of principal.
SECTION 2. The bonds shall be signed by the district treasurer and by the chairman of the board of utility commissioners and shall be issued and sold in such amounts as the board of utility commissioners may authorize. 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 proceedings of the board of utility commissioners authorizing the issue or by separate resolution of the board of utility commissioners 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 district treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended (a) for paying the contract termination charge to Montaup Electric Company as set forth in an agreement between the district and Montaup Electric Company dated October 24, 1997 or (b) in payment of the principal of or interest on temporary notes issued under section three or (c) in repayment of advances under section four. 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 proceeds of bonds or notes issued under this act and the other moneys referred to in section six shall be deemed appropriated for the purposes of this act without further action than that required by this act.
SECTION 3. The board of utility commissioners may by resolution authorize the issue from time to time of interest bearing or discounted notes in anticipation of the issue of bonds. The amount of original notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued under this act. Temporary notes issued hereunder shall be signed by the district treasurer and by the chairman of the board of utility commissioners and shall be payable within three 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 three 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 district treasurer, with the approval of the board of utility commissioners, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury of the district to the purposes specified in section two, such advance to be repaid without interest from the proceeds of bonds or notes subsequently issued.
SECTION 5. Any proceeds of bonds or notes issued hereunder, pending their expenditure, may be deposited or invested by the district 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 United State of America or by any agency or instrumentality thereof or as may be provided in any other applicable law of the state of Rhode Island.
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 district 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 project, 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 district treasurer, be met from bond or note proceeds exclusive of accrued interest or from other moneys available therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project 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 district treasurer shall be governed by any instructions adopted by resolution of the board of utility commissioners.
SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby shall be obligatory on the district in the same manner and to the same extent as other debts lawfully contracted by it. no such obligation shall at any time be included in the debt of the district for the purpose of ascertaining its borrowing capacity. The district 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 district shall be subject to ad valorem taxation by the district without limitation as to rate or amount in addition to any limited tax which the district may have power to impose.
SECTION 8. Any bonds or notes issued under the provisions of this act, if properly executed by officers of the district 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. Bonds and notes may be issued under this act without obtaining the approval of any governmental agency, except for the division of public utilities and carriers, or the taking of any proceedings or the happenings of any conditions except as specifically required by this act for such issue. In carrying out the project financed under this act, including where applicable the levy and collection of assessments or other charges permitted by law on account of 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.
SECTION 10. This act shall take effect upon its passage.
