Chapter 429
2008 -- S 3088
Enacted 07/08/08
A N A C T
(I)
AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION,
RENOVATION, IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR, ADDITIONS, PAVING,
LANDSCAPING, FURNISHING AND EQUIPPING OF THE RYSE SCHOOL BY THE ISSUANCE OF NOT
MORE THAN $4,447,000 BONDS AND/OR NOTES THEREFOR AND (II) PROVIDING THAT THE
PRINCIPAL OF, REDEMPTION PREMIUM AND INTEREST ON BONDS AND NOTES ISSUED FOR THE
PROJECT WILL BE BORNE BY THE MEMBER TOWNS IN EQUAL SHARES, WITH EACH TOWN
PAYING ONE-THIRD OF THE COSTS AND SUBJECT TO APPROVAL OF STATE SCHOOL HOUSING
AID
Introduced
By: Senator Dennis L. Algiere
Date
Introduced: June 10, 2008
It is enacted by the General Assembly as
follows:
SECTION 1. The
regional school district incorporated pursuant to Chapter 55 of the
Public Laws of 1958, as amended, known as the
Chariho Regional School District, is hereby
empowered, in addition to authority previously
granted, to issue general obligation bonds and
notes to an amount not exceeding four million
four hundred forty-seven thousand dollars ($4,
447,000) from time to time under is corporate
name and seal; provided, however, that the bonds
and notes shall be issued unless the conditions
of Section 4 hereof as to the level of state school
housing aid are met. The bonds of each issue may
be issued in the form of serial bonds or terms
bonds, zero coupon bonds, capital appreciation
bonds, or compound interest 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. 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 limitations.
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 district treasurer and the chairperson of the
regional school district committee and shall be
issued and sold in such amounts as the regional
school district committee 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 regional school
district committee authorizing the issue or by
separate resolution of the regional school
district committee 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 treasurer of the regional
school district committee, and such proceeds,
exclusive of premiums and accrued interest, shall
be expended (a) to finance the construction, renovation,
improvement, demolition, alteration,
repair, additions, paving, landscaping,
furnishing and equipping of the RYSE School by the
issuance of not more than $4,447,000 bonds
and/or notes therefor (the “Project”), (b) in payment
of the principal of and/or interest on temporary
notes issued under section three, (c) in repayment
of advances made pursuant to section four, (d)
in payment of costs of issuance associated with the
issuance of bonds or notes hereunder, and/or (e)
to finance capitalized interest. 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, any
applicable federal or state assistance and the
other moneys referred to in section six and nine,
shall be deemed appropriated for the purpose of
this act without further action than that required
by this act. This bond issue authorized by this
act may be consolidated for the purpose of
issuance and sale with any other bond issue of
the regional school district 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. The district
treasurer and the chairperson of the regional
school district committee, on behalf of the regional
school district, are hereby authorized to
execute such instruments, 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 and to execute and deliver a
continuing disclosure agreement or certificate
in connection with the bonds or notes.
SECTION 3. The
regional school district committee may be resolution authorize the
issue 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
treasurer of the regional school district.
Temporary notes issued hereunder shall be signed by the
district treasurer and the chairperson of the
regional school district committee and shall be
payable within five (5) years from their
respective dates, but the principal of and interest on notes
issued for 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. 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 (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
regional school district by paying agent at the
direction of the treasurer of the regional school
district in any investment permitted under
section five. The moneys in the fund and any
investments held as 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 regional school district
committee. The regional school district committee may
pay the principal of and interest on notes in
full from sources other than the issuance of refunding
notes prior to the issuance of bonds pursuant to
Section 1 hereof. In such case, the regional
school district committee’s authority to issue
bonds or notes in anticipation of bonds under this
act shall continue provided that 1) the regional
school district committee passes a resolution
evidencing the regional school district
committee’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 note to the maturity date of any other
note shall not exceed five (5) years.
SECTION 4. Bonds
and notes shall not be issued unless the Chariho Regional School
District has received a letter from the Rhode
Island Department of Elementary and Secondary
Education confirming that the Board of Regents
for the Elementary and Secondary Education has
approved the facilities to be financed for
school housing aid.
SECTION 5.
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
regional school district committee, may, to the
extent that bonds or notes may be issued
hereunder, apply funds in the treasury of the
regional school district committee 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 6. 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 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
States of America or by any agency or
instrumentality thereof (“Government Obligations”) or as
may be provided in any other applicable law of
the state of Rhode Island or resolution of the
regional school district committee or pursuant
to an investment policy of the regional school
district committee. Any bank deposits or
investments, other than investments in Government
Obligations, must either be directly insured by
the Federal Deposit Insurance Corporation or be
collateralized by Government Obligations which
have a value equal to or greater than 102% of
the deposit or investment amount.
SECTION 7. 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 district treasurer, be applied to the
cost or preparing, issuing and marketing bonds
or notes hereunder to the extend not otherwise
provided, to the payment of the cost of the
Projects, 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 or preparing,
issuing and marketing bonds or notes issued
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. If, upon completion of any
of the Projects there shall be any balance of bond
of note proceeds remaining not required for the
payment of the costs of such Project, such funds
shall be applied to the payment of the principal
of or interest on bonds or notes issued hereunder.
To the extend 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 regional school district
from the member towns. In exercising any discretion
under this section, the treasurer shall be
governed by any instructions adopted by resolution of the
regional school district committee.
SECTION 8. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory on the regional school
district committee in the same manner and to the same
extent as other debts are obligatory under the
laws of this state on incorporated towns of this state
and such debt evidenced by said bonds or notes
shall not be construed at any time to form a part
of the debt of any individual town which is a
member of the regional school district for the
purpose of ascertaining the borrowing capacity
of such town, nor shall said debt contracted by the
regional school district in any way apply to the
operation of section 45-12-2 of the general laws,
as amended, with respect to any member town. The
regional school district shall annually
appropriate a sum of sufficient to pay the
principal and interest coming due within the year on
bonds and notes issued hereunder until such bonds
and notes and the interest thereon are paid in
full.
SECTION 9. Any
bonds or notes issued under the provisions of this act, if properly
executed by officers of the regional school
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 such officers shall
for any reasons have ceased to hold office.
SECTION 10. The
regional school district, acting by resolution of its regional school
district committee, is authorized to apply for,
contract for any expend any federal or state
advances or other grants or 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 11. Bonds
and notes may be issued 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. 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 12. All or
any portion of the authority to issue bonds and notes under this act
may be extinguished by resolution of the
regional school district committee, without further
action by the general assembly, seven (7) years
after the effective date of this act.
SECTION 13.
Notwithstanding the provisions of Section 15 of Chapter 55 of the Public
Laws of 1958 as heretofore amended, including
amendments made by Chapter 490 of the Public
Laws of 2006, the principal of, redemption
premium and interest on the bonds and or notes
authorized by this act shall be borne by the
member towns in equal shares, with each member
town paying one-third of the costs.
SECTION 14. The
question of the approval of this act shall be submitted to the electors
of the towns of Charlestown, Richmond and
Hopkinton at an election (other than a primary
election) to be held on a date to be set by the
regional school district committee. The question
shall be submitted in substantially the
following form: “Shall an act, passed at the 2008 session of
the general assembly, entitled ‘AN ACT (I)
AUTHORIZING THE CHARIHO REGIONAL
SCHOOL DISTRICT TO FINANCE THE CONSTRUCTION,
RENOVATION,
IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR,
ADDITIONS, PAVING,
LANDSCAPING, FURNISHING AND EQUIPPING OF THE
RYSE SCHOOL BY THE
ISSUANCE OF NOT MORE THAN $4,447,000 BONDS AND/OR
NOTES THEREFOR AND
(II) PROVIDING THAT THE PRINCIPAL OF, REDEMPTION
PREMIUM AND INTEREST
ON BONDS AND NOTES ISSUED FOR THE PROJECT WILL
BE BORNE BY THE
MEMBER TOWNS IN EQUAL SHARES, WITH EACH TOWN
PAYING ONE-THIRD OF
THE COSTS AND SUBJECT TO APPROVAL OF STATE
SCHOOL HOUSING AID’ be
approved?” 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 clerks of the
respective towns of Charlestown, Richmond and
Hopkinton to keep a copy of the act available at
their offices 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 home rule charter of any
member town, this act shall prevail.
SECTION 15.
Sections 14 and 15 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 in each town of
those voting on the question at the election
prescribed by the foregoing section.
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LC03076
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