It is enacted by the General Assembly as follows:

SECTION 1. Bonds authorized. -- The town of Westerly is hereby empowered and authorized, in addition to authority previously granted, to issue bonds or other evidence of indebtedness to an amount not exceeding five hundred fifteen thousand dollars ($515,000) from time to time under its corporate name and seal. All such bonds of a particular issue or other evidences of indebtedness may be issued in the form of zero coupon bonds, capital appreciation bonds, serial bonds, term bonds, other applicable debt instrument or a combination thereof and shall be payable either by maturity of principal, or by mandatory serial redemption as applicable, in annual installments of principal, the first installment to be not later than three (3) years and the last installment not later than thirty (30) years after the date of the bonds. The amount of principal appreciation each year on any bonds, after the date of original issuance, shall not be considered to be principal indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. The appreciation of principal after the date of original issue shall be considered interest. Only the original principal amount shall be counted in determining the principal amount so issued and any interest component shall be disregarded. The obligations shall be signed by the town director of finance and by the town manager and shall be issued and sold in such amounts as the town council may authorize. The manner of sale, denominations, maturities, principal amounts, interest rates and other terms, conditions and details of any obligations issued under this act may be fixed by proceedings 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 obligations.

SECTION 2. Proceeds of the bonds. -- The proceeds derived from the sale of the bonds, notes or other evidence of indebtedness shall be delivered to the director of finance, and such proceeds, exclusive of premiums and accrued interest, shall be expended:

(a) for the construction, renovation and expansion of the Westerly Senior Citizens' Center;

(b) for the payment of capitalized interest on the project during the period of construction;

(c) in payment of the principal or of interest on temporary notes issued under section 3;

(d) in repayment of advances under section 4; and

(e) in payment of the costs of issuance in connection with the issuance of the bonds or notes.

No purchases of any obligations under this act shall be in any way responsible for the proper application of the proceeds derived from the sale thereof. The project shall be carried out and all contracts shall be made therefor on behalf of the town by the town council. The proceeds of obligations issued under this act, any applicable federal or state assistance and the other moneys referred to in sections 6 and 9 shall be deemed appropriated for the purposes of this act without further action than that required by this act.

In addition to such funds, there may be expended for the purposes of this act such other sums as may be appropriated therefor. 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. Temporary notes. -- The town council may by resolution authorize the issuance from time to time of interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the receipt of federal or state aid for the purposes fo 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 as estimated by the director of finance. Temporary notes issued hereunder shall be signed by the director of finance and by the town manager and shall be payable within five (5) years from their respective dates, but the principal of and interest on note 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 (5) years. The town may pay the principal of and interest on notes in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town's authority to issue bonds or notes in anticipation of bonds under this act shall continue provided that (1) the town council passes a resolution evidencing the town's intent to pay off the notes and (2) that the period from the date of an original note to the maturity date of any other note shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance of additional temporary notes, provided that no such refunding shall result in any amount of such temporary notes outstanding at any one (1) time in excess of two hundred percent (200%) of the amount of bonds which may be issued under this act, and provided further that if the issuance of any such refunding notes results in any amount of such temporary notes outstanding at any one time in excess of the amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund established with the paying agent for the notes being refunded. Pending their use to pay the notes being refunded, moneys in the fund shall be invested for the benefit of the town by the paying agent at the direction of the director of finance in any investment permitted under section 5. The moneys in the fund and any investments held as a part of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or prepayment of the principal of and interest on the notes being refunded. Upon payment of all principal of and interest on the notes, any excess moneys in the fund shall be distributed to the town.

SECTION 4. Advances from general fund. -- Pending any authorization or issue of bonds hereunder or pending or in lieu of any authorization or issue of notes hereunder, the director of finance, with the approval of the town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the general fund 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 of state assistance or from other available funds.

SECTION 5. Investment of money. -- 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 director of finance 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 States 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. Expenditures. -- 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 shall, in the discretion of the director of finance, 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 principal of or interest on bonds or notes issued hereunder or to any one (1) or more of the foregoing. The cost of preparing, issuing and marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met from bond or note proceeds exclusive of premium and accrued interest or from other moneys available therefor. Any balance of bond or note proceeds remaining after payment of 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. To the extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from property taxes in the discretion of the director of finance. In exercising any discretion under this section, the director of finance shall be governed by any instructions adopted by resolution of the town council.

SECTION 7. Security for bonds and notes. -- All bonds and 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 form 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 purposes 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. Validity of bonds or notes. -- 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. Federal or state advances or grant. -- 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 of 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 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. Conditions precedent to issuance. -- Bonds and notes may be issued under this act without obtaining 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, which shall be authorized hereby and carried out in the manner described by chapter 1 of title 24 of the general laws as it may be amended from time to time, 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.

SECTION 11. Documentation authorized. -- The director of finance and the town manager, on behalf of the town are hereby authorized to execute such instruments, documents or other papers as either of the foregoing deem necessary or desirable to carry out the intent of this act and are also authorized to take all actions and execute all documents necessary to comply with federal tax and securities laws including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes in the form as shall be deemed advisable by such officers in order to comply with the Rule.

SECTION 12. The question of the approval of this act shall be submitted to the electors of the town at a general or special election which is not a primary on such date as the town council shall designate but not later than July 31, 1996. The question shall be submitted in substantially the following form: "Shall an act, passed at the 1996 session of the general assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF WESTERLY TO ISSUE BONDS, NOTES OR OTHER EVIDENCES OF INDEBTEDNESS TO AN AMOUNT NOT EXCEEDING $515,000 TO FINANCE THE CONSTRUCTION, RENOVATION AND EXPANSION OF THE WESTERLY SENIOR CITIZENS' CENTER' be approved?" and the warning for the election shall contain the question to be submitted. 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 13. This section and the foregoing section shall take effect upon the passage of this act. 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 the foregoing section.