Sec. 13a-175t. Project loans. Municipal procedures.
Sec. 13a-175t. Project loans. Municipal procedures. (a) A municipality may authorize (1) the execution and delivery of project loan agreements; (2) the issuance and
sale of project loan obligations to finance its obligations under a project loan agreement;
and (3) the issuance and sale of its supplemental project obligations, in accordance with
such statutory and other legal requirements as govern the issuance of obligations and
the making of contracts by the municipality. Obligations authorized under this section
shall be subject to the debt limitation provisions of section 7-374.
(b) The legislative body of a municipality shall hold at least one public hearing on
an eligible bridge project, including the authorization of project loan obligations and
supplemental project obligations with respect thereto, prior to its vote on the approval
or disapproval of the eligible bridge project and the authorization of financing therefor.
Notice of the time, place and purpose of the hearing shall be published in a newspaper
having general circulation in the municipality not less than five days prior to the day
on which such hearing is to be held. For the purposes of this subsection, such five-day
period shall include the day upon which such notice is first published, and shall include
any Saturday, Sunday or legal holiday which may intervene between such publication
and the day on which such hearing is held, but shall not include the day upon which
such hearing is held.
(c) Each project loan obligation issued pursuant to this section shall bear interest
at the rate of six per cent per annum payable quarterly, shall mature in such amounts
and at such time or times not later than ten years from the date thereof and shall contain
such other terms and provisions as the project loan agreement under which it is issued
provides.
(d) Project loan obligations and supplemental project obligations shall be general
obligations of the issuing municipality and each such obligation shall recite that the full
faith and credit of the issuing municipality are pledged for the payment of the principal
thereof and interest thereon.
(e) Whenever a municipality has authorized the issuance of project loan obligations
or supplemental project obligations, it may authorize the issuance of temporary notes
in anticipation of the receipt of the proceeds from the issuance of its project loan obligations or supplemental project obligations. Such temporary notes may be renewed from
time to time by the issuance of other notes, provided that any such renewals shall conform
to all legal requirements and limitations applicable thereto, including the requirements
and limitations set forth in sections 7-378 and 7-378a.
(f) Except as otherwise provided in this section, project loan obligations, supplemental project obligations and temporary notes issued in anticipation of the receipt of
the proceeds thereof shall be issued by a municipality in accordance with such statutory
and other legal requirements as govern the issuance of such obligations generally by
such municipality, including, where applicable, the provisions of chapter 109.
(P.A. 84-254, S. 12, 62; P.A. 87-224, S. 1, 4.)
History: P.A. 87-224 amended Subsec. (b) by changing the time notice of a hearing is published from at least ten days
to not less than five days prior to the day on which the hearing is held, and by defining the five-day period.