Chapter 086
2011 -- S 0922
Enacted 06/21/11
A N A C T
AUTHORIZING THE
TOWN OF
BONDS AND NOTES
IN AN AMOUNT NOT TO EXCEED
$7,000,000 TO
FINANCE THE ACQUISITION, CONSTRUCTING,
BUILDING,
FURNISHING AND EQUIPPING OF A PUBLIC LIBRARY
Introduced By: Senators Felag, and DiPalma
Date Introduced: April 28, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. The Town of
previously granted, to issue its general obligation bonds and
notes to an amount not exceeding
seven million dollars ($7,000,000) at one time or from time
to time under its corporate name and
seal or a facsimile of such seal to finance the
acquisition, constructing, building, furnishing and
equipping of a library and related costs as more fully set
forth in section two. 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 a zero coupon bonds,
capital appreciation bonds, serial bonds or term bonds or
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
treasurer and the president of the town council and shall be
issued and sold in such amounts as the
town council may authorize by majority vote of all its
members. The amount of the bond issue,
manner of sale, denominations, maturities, interest rate or
rates, award and other terms, conditions
and details of any bonds or notes issued under this act
may be fixed by the proceedings of the
town council authorizing their 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. The town council may provide that any bonds
issued under this act and any other
authorized issue of bonds of the town may be consolidated and
issued at the same time as a single
bond issue, provided that the last installment of the
portion of any such consolidated issue that is
allocable to the bonds issued under this act shall not be later
than the times specified by the
applicable provisions hereof. The bonds may be made callable
with or without premium. The
proceeds derived from the sale of the bonds shall be delivered
to the town treasurer, and such
proceeds, exclusive of premiums and accrued interest, shall be
expended for costs of the
acquisition, constructing, building, furnishing and equipping of
a public library (hereinafter
referred to as the project) if approved by the voters in
accordance with section twelve hereof,
including all other costs incidental and related to the
foregoing project and its financing pursuant
to this act including, but not limited to, the payment
of the principal of or interest on temporary
notes issued under section three, the repayment of advances
made under section four, and/or to
finance capitalized interest on 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, or as may be authorized by the town council. The
proceeds of bonds or notes issued
under this act, any applicable federal or state assistance
and any other monies referred to in
sections five, six, or nine shall be deemed appropriated for
the purposes of this act without further
action than that required by this act. The 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. The town
treasurer and president of the town council, on behalf of the
town, 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 town council may by resolution authorize the
issue from time to time
of interest bearing or discounted notes in anticipation
of the issue of bonds under this act 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 finance director.
Temporary notes issued
hereunder shall be signed by the town treasurer 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. 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 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 finance director 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. The period for which bonds may be issued under this
act need not be reduced by the period
of any temporary loans hereunder. The proceeds derived
from the sale of such temporary notes
shall be used only for the purposes for which the proceeds
of bonds issued under this act may be
used. 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 one 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 note to the maturity date of any other
note shall not exceed five (5) years.
SECTION 4. Pending any issue of bonds or notes hereunder,
the town treasurer, with the
approval of the town council, may, to the extent that bonds or
notes may be issued hereunder,
apply funds in the treasury of the town for 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 town
treasurer in demand deposits, time deposits or savings deposits
in banks which are members of
the federal deposit insurance corporation, in obligations
issued or guaranteed by the
of
of either of them, or as may be provided in any other
applicable law of the State of
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 shall, in the discretion
of the town 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 project, 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 hereunder may also, in
the discretion of the town treasurer,
be met from bond or note proceeds exclusive of premiums
and accrued interest or from other
monies 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 may
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 shall upon receipt
be added to and used for the same
purposes as the proceeds of bonds or notes issued hereunder or
be added to and dealt with as a
part of the revenues of the town from property taxes. In
exercising any discretion under this
section, the town treasurer shall be governed by any
instructions adopted by resolution of the
town council. The town treasurer is authorized to take any
action deemed by him or her necessary
to assure that interest on the bonds or notes issued
hereunder remains excludable from gross
income of the recipients thereof for federal income tax
purposes, including, without limitation,
paying to the federal government any rebate of earnings
derived from the deposit or investment of
the proceeds of such bonds or notes that may be required therefor.
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
and any provision of the town charter. 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 monies 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
the 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 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
monies provided in the act. To the extent of any
inconsistency between any law of the 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 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 11. After completion of the acquisition, constructing,
building, furnishing and
equipping of a public library, all or any portion of the
authorized but unissued authority to issue
bonds and notes under this act may be extinguished by
ordinance of the town council, without
further action by the general assembly.
SECTION 12. The question of the approval of
this act shall be submitted to the electors
of the Town of
date as may be determined by resolution of the Town
Council to be held no later than November
6, 2012. The question shall be submitted in substantially the
following form:
“Shall
an act, passed at the 2011 session of the General Assembly, entitled ‘An Act
Authorizing the Town of
$7,000,000 to finance the
acquisition, constructing, building, furnishing and equipping of a public
library’ 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 clerk to keep a copy of this
act available at his or her office for public inspection,
but the validity of the vote taken at 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.
SECTION 13. This section and section twelve shall take
effect upon the passage of this
act. The remainder of this act shall take effect upon the
approval of the question listed in section
twelve hereof by a majority of those voting on the question
at the election prescribed by the
foregoing section.
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LC02517
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