2016 -- H 7993

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LC005557

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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: Representatives Craven, and Costa

     Date Introduced: March 24, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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town.

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

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

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

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agreement relating thereto may be fixed by the resolution of the town council authorizing the

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issue or by separate resolution of the town council or, to the extent provisions for these matters

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are not so made, they may be fixed by the officers authorized to sign the notes.

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

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

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

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

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

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

 

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

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their respective dates, and the principal of and interest on notes issued for a shorter period may be

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renewed or paid from time to time by the issue of other notes hereunder.

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

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treasurer, be met from note proceeds. In exercising any discretion under this section, the treasurer

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shall be governed by any instructions adopted by resolution of the town council. The treasurer is

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authorized to take any action deemed by him or her necessary to comply with the requirements of

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the bank, the Rhode Island housing mortgage finance corporation and federal law, including

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without being limited to, regulations and other requirements of the Securities and Exchange

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Commission and the Municipal Securities Rulemaking Board, imposed directly on the town, on

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

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     SECTION 6. All notes issued under this act and the debts evidenced thereby shall be

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obligatory on the town in the same manner and to the same extent as other debts lawfully

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contracted by it and shall be excepted from the operation of ยง45-12-2 of the general laws. No

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such obligation shall at any time be included in the debt of the town for the purpose of

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ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on notes issued hereunder to the extent that

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

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loan program. If such sum is not appropriated, it shall nevertheless be added to the annual tax

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levy. In order to provide such sum in each year and notwithstanding any provision of law to the

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contrary, all taxable property in the town shall be subject to ad valorem taxation by the town

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without limitation as to rate or amount.

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     SECTION 7. Any notes issued under the provisions of this act, if properly executed by

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officers of the town in office on the date of execution, shall be valid and binding according to

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their terms notwithstanding that before the delivery thereof and payment therefor any or all of

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such officers shall for any reason have ceased to hold office.

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     SECTION 8. The town, acting by resolution of its town council is authorized to apply for,

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

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

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provided in this act. To the extent of any inconsistency between any law of this state and any

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applicable federal law or regulation, the latter shall prevail.

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     SECTION 9. Notes may be issued and borrowings made under this act without obtaining

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the approval of any governmental agency or the taking of any proceedings or the happening of

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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,

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this act shall prevail.

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

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

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act.

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

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

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

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

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FINANCE A COMMUNITY SEPTIC SYSTEM LOAN PROGRAM AND TO ISSUE NOT

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MORE THAN $2,000,000 NOTES THEREFOR' be approved?" and the warning for the election

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shall contain the question to be submitted. The town board of canvassers may combine any two or

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more voting districts for the election and when so combined shall be treated as a voting district.

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If so combined, the town board of canvassers shall advertise the combination of districts in a

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newspaper of general circulation in the town. From the time the election is warned and until it is

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held, it shall be the duty of the town clerk to keep a copy of the act available at his or her office

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for public inspection, but the validity of the election shall not be affected by this requirement.

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     SECTION 13. This section and section 12 shall take effect upon passage. The remainder

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of this act shall take effect upon the approval of this act by a majority of those voting on the

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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

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

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

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

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election prescribed by section 12.

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