Chapter 226
2016 -- S 2811
Enacted 07/01/2016

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: Senators Gee, Pagliarini, Sheehan, Algiere, and Morgan
Date Introduced: March 23, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. The town of North Kingstown is hereby empowered, in addition to
authority previously granted, to borrow and/or issue notes to an amount not exceeding two
million dollars ($2,000,000) in the aggregate from time to time under its corporate name and seal
or a facsimile of such seal. The notes shall be issued from time to time to the Rhode Island
infrastructure bank (the "bank") pursuant to one or more loan agreements between it and the
town.
     SECTION 2. The notes shall be signed by the manual signatures of the town treasurer
and the president of the town council. The manner of sale, denominations, maturities, interest
rates and other terms, conditions and details of any notes issued under this act and of any loan
agreement relating thereto may be fixed by the resolution 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 notes.
     SECTION 3. The proceeds derived from the issuance of notes shall be used, under a
community septic loan program with the bank, for loans to owners of real property in the town of
North Kingstown for the repair or replacement of failed or failing septic systems or substandard
systems within the town and all costs incidental thereto. The proceeds of notes issued under this
act and any applicable federal or state assistance shall be deemed appropriated for the purposes of
this act without further action than that required by this act.
     SECTION 4. Notes issued hereunder shall be payable within twenty (20) years from
their respective dates, and 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.
     SECTION 5. The costs of issuing notes hereunder may also, in the discretion of the
treasurer, be met from note proceeds. In exercising any discretion under this section, the treasurer
shall be governed by any instructions adopted by resolution of the town council. The treasurer is
authorized to take any action deemed by him or her necessary to comply with the requirements of
the bank, the Rhode Island housing mortgage finance corporation and federal law, including
without being limited to, regulations and other requirements of the Securities and Exchange
Commission and the Municipal Securities Rulemaking Board, imposed directly on the town, on
the bank or on the underwriters of the town or the bank's bonds and notes.
     SECTION 6. All 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 ยง45-12-2 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 notes issued hereunder to the extent that
monies therefor are not otherwise provided or repaid by borrowers under the community septic
loan program. 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 7. Any 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 8. The town, acting by resolution of its town council is authorized to apply for,
contract for and use any federal or state advances or other grants or assistance which may be
available for the purposes of this act, and any such uses may be in addition to other monies
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.
     SECTION 9. Notes may be issued and borrowings made 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.
     SECTION 10. To the extent of any inconsistency between this act and the town charter,
this act shall prevail.
     SECTION 11. The provisions of chapter 24.5 of title 45 and chapter 12.2 of title 46, as
amended, of the general laws shall apply to the issuance of notes and borrowings made under this
act.
     SECTION 12. The question of the approval of this act shall be submitted to the electors
of the town at the general election on November 8, 2016. The question shall be submitted in
substantially the following form: "Shall an act, passed at the 2016 session of the General
Assembly, entitled 'AN ACT 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' be approved?" and the warning for the election
shall contain the question to be submitted. The town board of canvassers may combine any two or
more voting districts for the election and when so combined shall be treated as a voting district.
If so combined, the town board of canvassers shall advertise the combination of districts in a
newspaper of general circulation in the town. 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.
     SECTION 13. This section and section 12 shall take effect upon passage. 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 section 12.
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LC005541
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