Chapter 278
2017 -- H 6246
Enacted 07/21/2017

A N   A C T
AUTHORIZING THE TOWN OF LINCOLN TO ISSUE BONDS AND NOTES IN AN AMOUNT NOT EXCEEDING $60,000,000 TO FINANCE THE CONSTRUCTION, RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND EQUIPPING OF AND/OR ADDITIONS TO LINCOLN HIGH SCHOOL AND SCHOOL FACILITIES IN THE TOWN

Introduced By: Representatives O`Grady, Ackerman, and Costantino
Date Introduced: May 24, 2017

It is enacted by the General Assembly as follows:
     SECTION 1. The town of Lincoln is hereby empowered, in addition to authority
previously granted, to issue bonds in an amount not exceeding sixty million dollars ($60,000,000)
from time to time under its corporate name and seal. The bonds of each issue may be issued in
the form of zero-coupon bonds, capital appreciation bonds, 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 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 the bonds are issued. 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, and may bear interest at a fixed rate or rates or at a variable or auction rate
or rates. The bonds may be sold by a negotiated sale or by competitive bid and may be issued
pursuant to a resolution or an indenture of trust. 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 or premium
shall be disregarded.
     SECTION 2. The bonds shall be signed by the town director of finance, the town
administrator, and the president of the town council and shall be issued and sold in such amounts
as the town council 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 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: (1) For the construction, renovation, rehabilitation, repair,
improvements, furnishing and equipping of and/or additions to Lincoln High School and school
facilities in the Ttown; (2) For payment of the principal or interest on temporary notes issued
under Section 3; (3) In payment of capitalized interest on bonds or notes; (4) In repayment of
advances under Section 4; or (5) In payment of related costs of issuance of any bonds or notes.
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 sales thereof. The project shall be carried out and all
contracts made therefor on behalf of the town by the town administrator, subject to approval of
the town council. The proceeds of bonds or notes issued under this act, any applicable federal or
state assistance, and other moneys referred to in Sections 6 and 9, 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 director of finance, the town administrator, and
the 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 the Rule 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 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 that 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, the town manager, and the president of the town council, 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 thereunder; provided,
the period from the date of an original note to the maturity or 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 that 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 that may be issued under this
act, the proceeds of such refunding notes shall be deposited in a separate fund established with
the bank which that 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
5. 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 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 note to the maturity date
of any other note shall not exceed five (5) years.
     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 issued hereunder, apply funds in the
treasury of the town to the purposes specified in Section 2, 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 that 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, 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 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
director of finance, be met from bond or note proceeds exclusive of accrued interest or from other
moneys available therefor. Any balance of bond or note proceeds remaining after payment of the
cost of the projects 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 §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 or assistance which that
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 2.
     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 that 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 director of finance, the town administrator, 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. This act shall constitute an enabling act of the general assembly that is
required pursuant to §16-7-44. Bonds or other evidences of indebtedness issued under this act for
school projects shall not be eligible for state aid reimbursement pursuant to §16-7-44 unless the
school projects have been approved by the Rhode Island Ddepartment of Eeducation.
Notwithstanding anything contained in this act, the town may enter into financing agreements
with the Rhode Island Hhealth and Eeducational Bbuilding Ccorporation pursuant to Chapter
38.1 of Title 45 of the General Laws.
     SECTION 14. The question of the approval of this act shall be submitted to the electors
of the town at a special election (other than a primary), on a date as shall be designated by the
town council. The question shall be submitted in substantially the following form: “Shall an Act,
passed at the 2017 session of the General Assembly, entitled, ‘AN ACT AUTHORIZING THE
TOWN OF LINCOLN TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN
AMOUNT NOT TO EXCEED SIXTY MILLION DOLLARS ($60,000,000) FOR THE
PURPOSE OF FINANCING THE CONSTRUCTION, RENOVATION, REHABILITATION,
REPAIR, IMPROVEMENTS, FURNISHING AND EQUIPPING OF AND/OR ADDITIONS
TO LINCOLN HIGH SCHOOL AND SCHOOL FACILITIES IN THE TOWN' 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 their office for public inspection, but the validity of the election shall not be
affected by this requirement. The town of Lincoln is authorized to hold a special election for
consideration of the above question any time prior to December 31, 2018, as determined by the
town council.
     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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