Chapter
355
2007 -- H 6454
Enacted 07/05/07
A N A C T
AUTHORIZING THE TOWN
OF NORTH SMITHFIELD TO FINANCE THE ACQUISITION OF LAND AND/OR INTERESTS IN LAND
FOR A NEW MUNICIPAL PUBLIC LIBRARY AND LIBRARY FACILITIES AND THE RECONSTRUCTION
AND REHABILITATION OF EXISTING BUILDINGS AND CONSTRUCTION OF NEW BUILDINGS OR
NEW ADDITIONS TO EXISTING BUILDINGS FOR, AND THE EQUIPPING OF, A NEW MUNICIPAL
PUBLIC LIBRARY AND LIBRARY FACILITIES IN THE TOWN BY THE ISSUANCE OF NOT MORE
THAN $12,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By:
Representative Raymond C. Church
Date Introduced: May 30,
2007
It is
enacted by the General Assembly as follows:
SECTION
1. The Town of North Smithfield is hereby empowered, in addition to
authority
previously granted, to issue bonds to an amount not exceeding twelve million
dollars
($12,000,000)
from time to time under its corporate name and 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
(5) years and the last installment not later than thirty (30) years after the
date of the bonds.
All
such bonds of a particular issue may be issued in the form of zero coupon
bonds, capital
appreciation
bonds, serial bonds or term bonds or a combination thereof. Annual installments
of
principal
may be provided for by maturity of principal in the case of serial bonds or by
mandatory
serial
redemption in the case of term 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.
SECTION
2. The bonds shall be signed by the manual or facsimile signatures of the town
director
of finance 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 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 bonds or notes. The
proceeds
derived
from the sale of the bonds shall be delivered to the director of finance, and
such proceeds,
exclusive
of premiums and accrued interest, shall be expended as follows: (a) for the
purpose of
financing
the acquisition of land and/or interests in land for a new municipal public
library and
library
facilities and the reconstruction and rehabilitation of existing buildings and
construction of
new
buildings or new additions to existing buildings for, and the equipping of, a
new municipal
public
library and library facilities in the town (the "Project"), (b) in
payment of the principal of
or
interest on temporary notes issued under section three, (c) in repayment of
advances under
section
four, (d) in payment of the costs of issuance associated with the issuance of
bonds or
notes
hereunder and/or (e) in payment of capitalized interest during construction of
the Project.
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 Project shall be carried out
and all
contracts
made therefor on behalf of the town by the town council. The proceeds of bonds
or
notes
issued under this act, any applicable federal or state assistance and the other
moneys
referred
to in sections six and nine shall be deemed appropriated for the purposes of
this act
without
further action than that required by this act. This 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 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 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 director of
finance.
Temporary
notes issued hereunder shall be signed by the manual or facsimile signatures of
the
director
of finance and the president of the town council and shall be payable within
five (5) 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 (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 without
extinguishing the
authority
to issue bonds or notes and (2) that the period from the date of an original
notes 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 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
bank
which is 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
five. 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. 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 issue hereunder, apply
funds in the
treasury
of the town to the purposes specified in section two, 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 director
of
finance in demand deposits, time deposits, or savings deposits in banks which
are members of
the
Federal Deposit Insurance Corporation or in obligation 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 or resolution of the town council or pursuant
to an
investment
policy of the town.
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 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 project costs, 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 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.
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 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. 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 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 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
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 two.
SECTION
10. 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, 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. All or any portion of the authority to issue bonds and notes under this act
may be
extinguished by resolution of the town council, without further action by the
general
assembly.
SECTION
12. The town director of finance and the president of the town council, on
behalf
of the town, are hereby authorized to execute such documents or other papers as
either of
them
deem necessary or desirable to carry out the intent of this act and are also
authorized to take
all
actions and execute all documents or agreements necessary to comply with
federal tax and
securities
laws, which documents or agreements may have a term coextensive with the
maturity
of the
bonds authorized hereby, 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
13. Notwithstanding any general or special law to the contrary or any
provision
of the charter of the town, the town council, by resolution, may authorize the
town
director
of finance and the president of the town council in connection with undertaking
the
project
to be financed through the issuance of bonds and/or notes under this act to
enter into a
lease
of all or part of the project site and obtain such easements for access and
egress to such
project
site as shall be deemed necessary or desirable, provided that such lease and
easements, if
any,
shall be not less than 35 years and not more than 99 years in length. Such
lease may contain
renewal
extensions to cover periods beyond year 35 (subject to the maximum term to year
99)
and may
provided for purchase options for the site and a permanent easement, including
for a
nominal
sum, to be paid by the town.
SECTION
14. The question of the approval of this act shall be submitted to the electors
of the
town at a general or special election to be held on a date as shall be
designated by the town
council
or, in lieu thereof, by the town administrator. The question shall be submitted
in
substantially
the following form: "Shall an act, passed at the 2007 session of the general
assembly,
entitled 'An Act Authorizing The Town of North Smithfield to Finance the
Acquisition
of Land
and/or Interests in Land for a New Municipal Public Library and Library
Facilities and
the
Reconstruction and Rehabilitation of Existing Buildings and Construction of New
Buildings
or New
Additions to Existing Buildings for, and the Equipping of, a New Municipal
Public
Library
and Library Facilities in the Town by the Issuance of Not More than $12,000,000
Bonds
and/or
Notes Therefor' 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. To the extent of any
inconsistency
between this act and the town charter, this act shall prevail. Any contest
questioning
the time, place, manner, notice and timeliness of notice of the election held
must be
commenced
in superior court against the town not later than twenty (20) calendar days
from the
date
such election is held; otherwise, the validity of the election shall be
conclusively presumed
and
such election shall be deemed legally compliant notwithstanding any
irregularities, omission
or
defects with respect to such matters.
SECTION
15. 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.
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LC03179
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