2016 -- S 2811

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LC005541

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO FINANCE A COMMUNITY

SEPTIC SYSTEM LOAN PROGRAM AND TO ISSUE NOT MORE THAN $2,000,000

NOTES THEREFOR

     Introduced By: Senators Gee, Pagliarini, Sheehan, Algiere, and Morgan

     Date Introduced: March 23, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. The town of North Kingstown is hereby empowered, in addition to

authority previously granted, to borrow and/or issue notes to an amount not exceeding two

million dollars ($2,000,000) in the aggregate from time to time under its corporate name and seal

or a facsimile of such seal. The notes shall be issued from time to time to the Rhode Island

infrastructure bank (the "bank") pursuant to one or more loan agreements between it and the

town.

     SECTION 2. The notes shall be signed by the manual signatures of the town treasurer

and the president of the town council. The manner of sale, denominations, maturities, interest

rates and other terms, conditions and details of any notes issued under this act and of any loan

agreement relating thereto 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 notes.

     SECTION 3. The proceeds derived from the issuance of notes shall be used, under a

community septic loan program with the bank, for loans to owners of real property in the town of

North Kingstown for the repair or replacement of failed or failing septic systems or substandard

systems within the town and all costs incidental thereto. The proceeds of notes issued under this

act and any applicable federal or state assistance shall be deemed appropriated for the purposes of

this act without further action than that required by this act.

     SECTION 4. Notes issued hereunder shall be payable within twenty (20) years from

their respective dates, and 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.

     SECTION 5. The costs of issuing notes hereunder may also, in the discretion of the

treasurer, be met from note proceeds. 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 to comply with the requirements of

the bank, the Rhode Island housing mortgage finance corporation and 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, on

the bank or on the underwriters of the town or the bank's bonds and notes.

     SECTION 6. All 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 §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 notes issued hereunder to the extent that

monies therefor are not otherwise provided or repaid by borrowers under the community septic

loan program. 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 7. Any 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 8. The town, acting by resolution of its town council is authorized to apply for,

contract for and use any federal or state advances or other grants or assistance which may be

available for the purposes of this act, and any such uses may be in addition to other monies

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.

     SECTION 9. Notes may be issued and borrowings made 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.

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     SECTION 10. To the extent of any inconsistency between this act and the town charter,

this act shall prevail.

     SECTION 11. The provisions of chapter 24.5 of title 45 and chapter 12.2 of title 46, as

amended, of the general laws shall apply to the issuance of notes and borrowings made under this

act.

     SECTION 12. The question of the approval of this act shall be submitted to the electors

of the town at the general election on November 8, 2016. The question shall be submitted in

substantially the following form: "Shall an act, passed at the 2016 session of the General

Assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO

FINANCE A COMMUNITY SEPTIC SYSTEM LOAN PROGRAM AND TO ISSUE NOT

MORE THAN $2,000,000 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 13. This section and section 12 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 12.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO FINANCE A COMMUNITY

SEPTIC SYSTEM LOAN PROGRAM AND TO ISSUE NOT MORE THAN $2,000,000

NOTES THEREFOR

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     This act would authorize the town of North Kingstown to finance a community septic

system loan program and to issue not more than two million dollars ($2,000,000) in notes.

     Section 12 and section 13 would take effect upon passage. The remainder of the act

would take effect upon the approval of the act by a majority of those voting on the question at the

election prescribed by section 12.

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