Chapter
437
2008 -- H 8257 SUBSTITUTE A AS AMENDED
Enacted 07/05/08
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:
Representatives Scott, and Walsh
Date Introduced: May 08,
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 not 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
term
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 sections 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 by 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 the 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 of
preparing, issuing and marketing bonds or notes hereunder to the extent 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 of 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
or 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 and 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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LC02888/SUB A
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