Chapter 300
2017 -- S 0972
Enacted 07/26/2017

A N   A C T
AUTHORIZING THE TOWN OF SCITUATE TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $4,900,000 TO FINANCE REPLACEMENTS, RENOVATIONS AND IMPROVEMENTS INCLUDING A NEW TRACK AND FIELD AT THE SCITUATE PUBLIC SCHOOLS

Introduced By: Senators Kettle, and Paolino
Date Introduced: June 21, 2017

It is enacted by the General Assembly as follows:
     SECTION 1. The Town of Scituate is hereby empowered, in addition to authority
previously granted, to issue its general obligation bonds and notes to an amount not exceeding
four million nine hundred thousand dollars ($4,900,000) at one time or from time to time under
its corporate name and seal or a facsimile of such seal to finance replacements, renovations, and
improvements including a new track and field at the Scituate public schools. 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 of zero-coupon
bonds, capital appreciation bonds, serial bonds or term bonds, or a 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 purpose of a 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 financing
replacements, renovations, and improvements including a new track and field at the Scituate
public schools (herein referred to as the "project") if approved by the voters in accordance with
Section 12 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 principal of or interest
on temporary notes issued under Section 3,; the repayment of advances made under Section 9,;
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 5, 6, or 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 above. The town treasurer
and president of the town council acting singly, 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, to execute and
deliver a continuing disclosure agreement or certificate in connection with the bond or notes, and
to comply with the provisions of §§16-7-35 to 16-7-47, including making all necessary contracts
and agreements to issue said bonds and/or notes through the Rhode Island Health and Educational
Building Corporation
     SECTION 3. The town council may by resolution authorize in 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 town treasurer.
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 that may be
issued under this act; and provided further, that if issuance of any such refunding notes results in
any 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, monies in the
fund shall be invested for the benefit of the town by the paying agent at the direction of the town
treasurer in any investment permitted under Section 5. The monies 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 monies 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 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 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 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 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 town
treasurer in demand deposits, time deposits, or savings deposits in which are members of the
federal deposit insurance corporation,; in obligations issued or guaranteed by the United States of
America or Sstate of Rhode Island, or by an agency, instrumentality or political subdivision of
either of them,; 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
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 direction 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
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 them to be necessary to ensure 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 §45-12-2. 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 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 expand 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 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 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. After completion of the project, all or any portion of the authorized but
unissued 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 question of the approval of this act shall be submitted to the electors
of the town of Scituate at the general election to be held on November 7, 2017. 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 Scituate to Issue General Obligation
Bonds and Notes in an Amount not to Exceed $4,900,000 to Finance Replacements, Renovations
and Improvements including a New Track And Field at the Scituate Public Schools" be
approved?"? The warning for election shall contain the question to be submitted. The town board
of canvassers may combine any two (2) 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 this act available at the clerk's office for public inspection, but the validity of the vote taken at
the election shall not be affected by this requirement.
     SECTION 13. This section and section 12 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 12
hereof by a majority of those voting on the question at the election prescribed by the foregoing
section.
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