Sec. 22a-483. Bond issue for Clean Water Fund projects. General obligation bonds. Revenue bonds.
Sec. 22a-483. Bond issue for Clean Water Fund projects. General obligation
bonds. Revenue bonds. (a) For the purposes of sections 22a-475 to 22a-483, inclusive,
the State Bond Commission shall have the power, from time to time to authorize the
issuance of bonds of the state in one or more series and in principal amounts, not exceeding in the aggregate nine hundred sixty-one million thirty thousand dollars, provided
ninety million dollars of said authorization shall be effective July 1, 2008.
(b) The proceeds of the sale of any bonds, state bond anticipation notes or state
grant anticipation notes issued pursuant to sections 22a-475 to 22a-483, inclusive, shall
be deposited in the Clean Water Fund and not less than fifty million dollars of such
proceeds shall be deposited in the Long Island Sound clean-up account of said fund.
(c) All provisions of section 3-20, or the exercise of any right or power granted
thereby which are not inconsistent with the provisions of sections 22a-475 to 22a-483,
inclusive, are hereby adopted and shall apply to all bonds authorized by the State Bond
Commission pursuant to said sections, and temporary notes in anticipation of the money
to be derived from the sale of any such bonds so authorized may be issued in accordance
with said section 3-20 and from time to time renewed. None of said bonds shall be
authorized except upon a finding by the State Bond Commission that there has been
filed with it a request for such authorization, which is signed by or on behalf of the
Secretary of the Office of Policy and Management and states such terms and conditions
as said commission, in its discretion, may require. Said bonds issued pursuant to sections
22a-475 to 22a-483, inclusive, may be general obligations of the state and in such case
the full faith and credit of the state of Connecticut are pledged for the payment of the
principal of and interest on said bonds as the same become due, and accordingly and as
part of the contract of the state with the holders of said bonds, appropriation of all
amounts necessary for punctual payment of such principal and interest is hereby made,
and the Treasurer shall pay such principal and interest as the same become due. Such
general obligation bonds shall mature at such time or times not exceeding twenty years
from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such general obligation bonds. The
state, acting by and through the State Bond Commission, is hereby authorized to issue
from time to time general obligation bonds in such sums as is appropriate and necessary
to meet the state's matching requirement for eligibility pursuant to the federal Water
Quality Act of 1987 or the federal Safe Drinking Water Act or other similar federal
act, provided such sums shall not exceed the aggregate principal amounts of bonds
authorized pursuant to subsection (a) of this section. Whenever such bonds are so authorized, the state's obligations shall be issued on such terms and conditions as shall be
determined and established by the Treasurer. Such bonds shall bear such rate of interest
as the treasurer shall determine, by reference to such open market indices for obligations
having similar terms and characteristics as the Treasurer shall determine relevant, in
order to arrive at a taxable rate of interest on the obligations of the state issued and sold
to the Clean Water Fund. The Treasurer shall deliver such bonds to the Clean Water Fund
upon the receipt of evidence from the Environmental Protection Agency evidencing
satisfaction by the state of its federal matching requirement pursuant to the federal Water
Quality Act of 1987 or the federal Safe Drinking Water Act or other similar federal act.
(d) Notwithstanding the foregoing, nothing herein shall preclude the State Bond
Commission from authorizing the issuance of revenue bonds, in principal amounts not
exceeding in the aggregate one billion seven hundred fifty-three million four hundred
thousand dollars, provided one hundred eighty million dollars of said authorization shall
be effective July 1, 2008, that are not general obligations of the state of Connecticut to
which the full faith and credit of the state of Connecticut are pledged for the payment
of the principal and interest. Such revenue bonds shall mature at such time or times not
exceeding thirty years from their respective dates as may be provided in or pursuant to
the resolution or resolutions of the State Bond Commission authorizing such revenue
bonds. The revenue bonds, revenue state bond anticipation notes and revenue state grant
anticipation notes authorized to be issued under sections 22a-475 to 22a-483, inclusive,
shall be special obligations of the state and shall not be payable from nor charged upon
any funds other than the revenues or other receipts, funds or moneys pledged therefor
as provided in said sections 22a-475 to 22a-483, inclusive, including the repayment of
municipal loan obligations; nor shall the state or any political subdivision thereof be
subject to any liability thereon except to the extent of such pledged revenues or the
receipts, funds or moneys pledged therefor as provided in said sections 22a-475 to 22a-483, inclusive. The issuance of revenue bonds, revenue state bond anticipation notes
and revenue state grant anticipation notes under the provisions of said sections 22a-475
to 22a-483, inclusive, shall not directly or indirectly or contingently obligate the state
or any political subdivision thereof to levy or to pledge any form of taxation whatever
therefor or to make any appropriation for their payment. The revenue bonds, revenue
state bond anticipation notes and revenue state grant anticipation notes shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the state or
of any political subdivision thereof, except the property mortgaged or otherwise encumbered under the provisions and for the purposes of said sections 22a-475 to 22a-483,
inclusive. The substance of such limitation shall be plainly stated on the face of each
revenue bond, revenue state bond anticipation note and revenue state grant anticipation
note issued pursuant to said sections 22a-475 to 22a-483, inclusive, shall not be subject
to any statutory limitation on the indebtedness of the state and such revenue bonds,
revenue state bond anticipation notes and revenue state grant anticipation notes, when
issued, shall not be included in computing the aggregate indebtedness of the state in
respect to and to the extent of any such limitation. As part of the contract of the state
with the owners of such revenue bonds, revenue state bond anticipation notes and revenue state grant anticipation notes, all amounts necessary for the punctual payment of
the debt service requirements with respect to such revenue bonds, revenue state bond
anticipation notes and revenue state grant anticipation notes shall be deemed appropriated, but only from the sources pledged pursuant to said sections 22a-475 to 22a-483, inclusive. The proceeds of such revenue bonds or notes may be deposited in the
Clean Water Fund for use in accordance with the permitted uses of such fund. Any
expense incurred in connection with the carrying out of the provisions of this section,
including the costs of issuance of revenue bonds, revenue state bond anticipation notes
and revenue state grant anticipation notes may be paid from the accrued interest and
premiums or from any other proceeds of the sale of such revenue bonds, revenue state
bond anticipation notes or revenue state grant anticipation notes and in the same manner
as other obligations of the state. All provisions of subsections (g), (k), (l), (s) and (u) of
section 3-20 or the exercise of any right or power granted thereby which are not inconsistent with the provisions of said sections 22a-475 to 22a-483, inclusive, are hereby adopted
and shall apply to all revenue bonds, state revenue bond anticipation notes and state
revenue grant anticipation notes authorized by the State Bond Commission pursuant to
said sections 22a-475 to 22a-483, inclusive. For the purposes of subsection (o) of section
3-20, "bond act" shall be construed to include said sections 22a-475 to 22a-483, inclusive.
(e) Any pledge made by the state pursuant to sections 22a-475 to 22a-483, inclusive,
is a statutory pledge and shall be valid and binding from the time when the pledge is
made, and any revenues or other receipts, funds or moneys so pledged and thereafter
received by the state shall be subject immediately to the lien of such pledge without any
physical delivery thereof or further act. The lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort, contract or otherwise
against the state, irrespective of whether such parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need be recorded. Any
pledge made by the state pursuant to sections 22a-475 to 22a-483, inclusive, to secure
revenue bonds issued to finance eligible water quality projects shall secure only revenue
bonds issued for such purpose and any such pledge made by the state to secure revenue
bonds issued to finance eligible drinking water projects shall secure only revenue bonds
issued for such purpose.
(f) Whenever the General Assembly has authorized the State Bond Commission to
authorize bonds of the state for clean water projects and uses and has found that such
projects and uses are for any of the purposes set forth in sections 22a-475 to 22a-483,
inclusive, and whenever the State Bond Commission finds that the authorization of such
bonds will be in the best interests of the state, the State Bond Commission shall authorize
the issuance of such bonds from time to time in one or more series and in principal
amounts not exceeding the aggregate amount authorized by the General Assembly.
(g) Whenever the state has a written commitment to receive a grant-in-aid or similar
form of assistance with respect to a project or program for which the issuance of bonds
has been authorized pursuant to sections 22a-475 to 22a-483, inclusive, the Treasurer
may issue state grant anticipation notes in anticipation of the issuance of such a grant-in-aid or other assistance provided (1) the total amount of such notes shall not exceed
the amount of the grant commitment which has not been paid to the state and (2) all
grant payments with respect to such project or program received by the state, to the
extent required, shall be applied promptly toward repayment of such temporary notes
as the same shall become due and payable, or shall be deposited in trust for such purpose.
Notes evidencing such borrowings shall be signed by the manual or facsimile signature
of the Treasurer or his deputy. The principal of and interest on any state grant anticipation
notes issued pursuant to this subsection may be repaid from the proceeds of renewals
thereof, from grants-in-aid or other assistance pledged for the payment thereof, or from
the proceeds of a credit facility including, but not limited to, a letter of credit or policy
of bond insurance.
(h) Bonds, state bond anticipation notes and state grant anticipation notes issued
pursuant to sections 22a-475 to 22a-483, inclusive, are hereby made securities in which
public officers and public bodies of the state and its political subdivisions, all insurance
companies, credit unions, building and loan associations, investment companies, banking associations, trust companies, executors, administrators, trustees and other fiduciaries and pension, profit-sharing and retirement funds may properly and legally invest
funds, including capital in their control or belonging to them. Such bonds, state bond
anticipation notes and state grant anticipation notes are hereby made securities which
may properly and legally be deposited with and received by any state or municipal
officer or any agency or political subdivision of the state for any purpose for which the
deposit of bonds, state bond anticipation notes, state grant anticipation notes or other
obligations of the state is now or may hereafter be authorized by law.
(i) The proceedings under which bonds are authorized to be issued may, subject to
the provisions of the general statutes, contain any or all of the following: (1) Provisions
respecting custody of the proceeds from the sale of the bonds and any bond anticipation
notes, including any requirements that such proceeds be held separate from or not be
commingled with other funds of the state; (2) provisions for the investment and reinvestment of bond proceeds utilized to pay project costs and for the disposition of any excess
bond proceeds or investment earnings thereon; (3) provisions for the execution of reimbursement agreements or similar agreements in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing
agreements and agreements for the purpose of moderating interest rate fluctuations, and
of such other agreements entered into pursuant to section 3-20a; (4) provisions for the
collection, custody, investment, reinvestment and use of the pledged revenues or other
receipts, funds or moneys pledged therefor as provided in sections 22a-475 to 22a-483, inclusive; (5) provisions regarding the establishment and maintenance of reserves,
sinking funds and any other funds and accounts as shall be approved by the State Bond
Commission in such amounts as may be established by the State Bond Commission,
and the regulation and disposition thereof, or the establishment of a reserve fund of the
state into which may be deposited any moneys appropriated and made available by the
state for such fund, any proceeds of the sale of bonds or notes, to the extent provided
in the resolution of the state authorizing the issuance thereof, and any other moneys
which may be made available to the state for the purpose of such fund from any source
whatever and, in lieu of the deposit of any such moneys, evidence by the state of the
satisfaction of a federal matching requirement on the part of the state pursuant to the
federal Water Quality Act of 1987 or the federal Safe Drinking Water Act or other related
federal act, as applicable, including requirements that any such funds and accounts be
held separate from or not be commingled with other funds of the state; (6) covenants
for the establishment of pledged revenue coverage requirements for the bonds and state
bond anticipation notes; (7) provisions for the issuance of additional bonds on a parity
with bonds theretofore issued, including establishment of coverage requirements with
respect thereto as herein provided; (8) provisions regarding the rights and remedies
available in case of a default to bondowners, noteowners or any trustee under any contract, loan agreement, document, instrument or trust indenture, including the right to
appoint a trustee to represent their interests upon occurrence of an event of default, as
defined in said proceedings, provided that if any bonds or state bond anticipation notes
shall be secured by a trust indenture, the respective owners of such bonds or notes shall
have no authority except as set forth in such trust indenture to appoint a separate trustee
to represent them; (9) provisions for the payment of rebate amounts; and (10) provisions
or covenants of like or different character from the foregoing which are consistent with
sections 22a-475 to 22a-483, inclusive, and which the State Bond Commission determines in such proceedings are necessary, convenient or desirable in order to better secure
the bonds or state bond anticipation notes, or will tend to make the bonds or state bond
anticipation notes more marketable, and which are in the best interests of the state. Any
provision which may be included in proceedings authorizing the issuance of bonds
hereunder may be included in an indenture of trust duly approved in accordance with
sections 22a-475 to 22a-483, inclusive, which secures the bonds and any notes issued
in anticipation thereof, and in such case the provisions of such indenture shall be deemed
to be a part of such proceedings as though they were expressly included therein.
(j) Whether or not any bonds, state bond anticipation notes or state grant anticipation
notes issued pursuant to sections 22a-475 to 22a-483, inclusive, are of such form and
character as to be negotiable instruments under the terms of title 42a, such bonds, state
bond anticipation notes and state grant anticipation notes are hereby made negotiable
instruments within the meaning of and for all purposes of title 42a, subject only to the
provisions of such bonds, state bond anticipation notes and state grant anticipation notes
for registration.
(k) The state covenants with the purchasers and all subsequent owners and transferees of bonds, state bond anticipation notes and state grant anticipation notes issued by
the state pursuant to sections 22a-475 to 22a-483, inclusive, in consideration of the
acceptance of and payment for the bonds, state bond anticipation notes and state grant
anticipation notes, that such bonds, state bond anticipation notes and state grant anticipation notes shall be free at all times from taxes levied by any municipality or political
subdivision or special district having taxing powers of the state and the principal and
interest of any bonds, state bond anticipation notes and grant anticipation notes issued
under the provisions of sections 22a-475 to 22a-483, inclusive, their transfer and the
income therefrom, including revenues derived from the sale thereof, shall at all times
be free from taxation of every kind by the state of Connecticut or under its authority,
except for estate or succession taxes. The Treasurer is authorized to include this covenant
of the state in any agreement with the owner of any such bonds, state bond anticipation
notes or state grant anticipation notes.
(l) Pending the use and application of any bond proceeds, such proceeds may be
invested by, or at the direction of the State Treasurer, in obligations listed in section 3-20 or in investment agreements rated within the top rating categories of any nationally
recognized rating service or in investment agreements secured by obligations, of or
guaranteed by, the United States or agencies or instrumentalities of the United States.
(m) Any revenue bonds issued under the provisions of sections 22a-475 to 22a-483, inclusive, and at any time outstanding may, at any time and from time to time, be
refunded by the state by the issuance of its revenue refunding bonds in such amounts
as the State Bond Commission may deem necessary, but not to exceed an amount sufficient to refund the principal of the revenue bonds to be so refunded, to pay any unpaid
interest thereon and any premiums and commissions necessary to be paid in connection
therewith and to pay costs and expenses which the Treasurer may deem necessary or
advantageous in connection with the authorization, sale and issuance of refunding bonds.
Any such refunding may be effected whether the revenue bonds to be refunded shall
have matured or shall thereafter mature. All revenue refunding bonds issued hereunder
shall be payable solely from the revenues or other receipts, funds or moneys out of
which the revenue bonds to be refunded thereby are payable and shall be subject to and
may be secured in accordance with the provisions of this section.
(n) The Treasurer shall have power, out of any funds available therefor, to purchase
revenue bonds, state revenue bond anticipation notes and state revenue grant anticipation
notes of the state issued pursuant to sections 22a-475 to 22a-483, inclusive. The Treasurer may hold, pledge, cancel or resell such bonds or notes, subject to and in accordance
with agreements with bondholders or noteholders, as applicable.
(P.A. 86-420, S. 9, 12; P.A. 87-405, S. 22, 26; 87-571, S. 6, 7; P.A. 88-343, S. 14, 32; P.A. 89-331, S. 21, 30; 89-377,
S. 6, 8; P.A. 90-297, S. 14, 24; June Sp. Sess. P.A. 90-1, S. 7, 10; June Sp. Sess. P.A. 91-4, S. 16, 17, 25; P.A. 92-113, S.
1, 2; May Sp. Sess. P.A. 92-7, S. 17, 18, 36; June Sp. Sess. P.A. 93-1, S. 12, 13, 36, 45; May Sp. Sess. P.A. 94-2, S. 10,
11, 203; P.A. 95-272, S. 11, 12, 29; P.A. 96-181, S. 116-118, 121; June 5 Sp. sess. P.A. 97-1, S. 15, 16, 20; P.A. 98-124,
S. 9, 12; 98-259, S. 11, 17; P.A. 99-241, S. 14, 15, 66; June Sp. Sess. P.A. 01-7, S. 6, 7, 28; May 9 Sp. Sess. P.A. 02-5, S.
12; May Sp. Sess. P.A. 04-1, S. 8; May Sp. Sess. P.A. 04-2, S. 58; June Sp. Sess. P.A. 05-5, S. 10, 11; June Sp. Sess. P.A.
07-7, S. 50, 51.)
History: P.A. 87-405 increased the bond authorization from $40,000,000 to $80,000,000; P.A. 87-571 added Subsec.
(d) regarding issuance of bonds that are not general obligations of the state; P.A. 88-343 increased the bond authorization
to $120,000,000; P.A. 89-331 increased the bond authorization to $220,000,000 and provided that $25,000,000 of the
proceeds be deposited in the Long Island Sound account; P.A. 89-377 would have changed aggregate total in Subsec. (a)
from $120,000,000 to $145,000,000 but for precedence of P.A. 89-331, reiterated provision of P.A. 89-331 re addition of
$25,000,000 to the Long Island Sound clean-up account, provided that the obligations may, rather than shall, be general
obligations of the state and added Subdivs. (e) to (l), inclusive; P.A. 90-297 amended Subsec. (a) to increase the bond
authorization from $220,000,000 to $345,000,000, amended Subsec. (b) to increase the minimum deposit in the clean
water fund from $25,000,000 to $50,000,000, amended Subsec. (c) to require that requests for authorizations be signed
by the secretary of the office of policy and management rather than by the commissioner of environmental protection and
amended Subsec. (d) to limit revenue bonds to principal amounts not exceeding in the aggregate $100,000,000; June Sp.
Sess. 90-1 amended Subsec. (c) to include provisions regarding the issuance of general obligation bonds to meet the
matching requirements of federal law and to be delivered to the clean water fund, amended Subsec. (d) to clarify the status
and method of issuance of revenue bonds, amended Subsec. (h) to remove credit unions, building and loan associations
and investment companies from the list of possible investors, amended Subsec. (i)(3) to clarify the extent to which and
manner in which reserve funds could be used, amended Subsec. (k) to reword the provisions concerning state tax exemption
and added Subsec. (m), concerning revenue refunding bonds, and Subsec. (n), concerning repurchase of revenue obligations;
June Sp. Sess. P.A. 91-4, in Subsec. (a), increased the bond authorization from $345,000,000 to $395,000,000 and in
Subsec. (d), increased the bond authorization from $100,000,000 to $300,000,000; P.A. 92-113 amended Subsec. (c) to
provide that the rate determined by the treasurer shall be a taxable, rather than tax-exempt, rate; May Sp. Sess. P.A. 92-7
amended Subsec. (a) to increase the bond authorization from $395,000,000 to $425,000,000 and amended Subsec. (d) to
increase the bond authorization from $300,000,000 to $330,000,000; June Sp. Sess. P.A. 93-1 amended Subsec. (a) to
increase bond authorization to $558,870,000, provided $75,020,000 of said authorization shall be effective July 1, 1994,
amended Subsec. (d) to increase bond authorization from $320,000,000 to $475,400,000, provided $51,600,000 of said
authorization shall be effective July 1, 1994, and further amended Subsec. (c) to move provision re bond maturity and
amended Subsec. (d) to provide that bonds shall mature not more than 30 years from their dates and that expenses of
carrying out provisions may be paid from accrued interest and premiums or other sale proceeds, effective July 1, 1993;
May Sp. Sess. P.A. 94-2 in Subsec. (a) decreased bond authorization from $558,870,000 to $536,270,000 and in Subsec.
(d) decreased bond authorization from $475,400,000 to $466,900,000, effective July 1, 1994; P.A. 95-272 amended Subsec.
(a) to increase authorization amount from $536,270,000 to $576,330,000, effective July 1, 1995, provided $23,580,000 shall
be effective July 1, 1996, and amended Subsec. (d) to increase authorization amount from $466,900,000 to $633,300,000,
effective July 1, 1995, provided $41,000,000 shall be effective July 1, 1996; P.A. 96-181 amended Subsec. (c) and (i) to
add federal Safe Drinking Water Act or similar federal act, and amended Subsec. (e) to add provision re securing revenue
bonds issued to finance eligible drinking water projects, effective July 1, 1996; June 5 Sp. Sess. P.A. 97-1 amended Subsec.
(a) to increase bond authorization from $576,330,000 to $635,330,000 provided $14,000,000 of that authorization is
effective July 1, 1998, and amended Subsec. (d) to increase bond authorization from $633,300,000 to $867,900,000 provided $83,300,000 of that authorization is effective July 1, 1998, effective July 31, 1997; P.A. 98-124 amended Subsec.
(i)(3) to add agreements entered into pursuant to Sec. 3-20a, effective May 27, 1998; P.A. 98-259 amended Subsec. (a) to
decrease authorization from $635,330,000 to $621,330,000 and deleted proviso re use of $14,000,000, effective July 1,
1998; P.A. 99-241 amended Subsec. (a) to increase authorization from $621,330,000 to $717,830,000, effective July 1,
1999, provided $53,100,000 is effective July 1, 2000 and amended Subsec. (d) to increase authorization from $867,900,000
to $999,400,000, effective July 1, 1999, provided $66,900,000 is effective July 1, 2000; June Sp. Sess. P.A. 01-7 amended
Subsec. (a) to increase authorization from $717,830,000 to $797,830,000 provided $40,000,000 is effective July 1, 2002,
and amended Subsec. (d) to increase authorization from $999,400,000 to $1,238,400,000 provided $158,000,000 is effective July 1, 2002, effective July 1, 2001; May 9 Sp. Sess. P.A. 02-5 amended Subsec. (a) to increase authorization from
$797,830,000 to $801,030,000 and to provide that $60,000,000 of said authorization shall be effective July 1, 2003, effective
July 1, 2002; May Sp. Sess. P.A. 04-1 amended Subsec. (a) to reduce aggregate authorization to $741,030,000 and deleted
provision re funds authorized in 2003, effective July 1, 2004; May Sp. Sess. P.A. 04-2 amended Subsec. (e) to provide
that pledges made by the state under Secs. 22a-475 to 22a-483, inclusive, are statutory and not subject to the Uniform
Commercial Code, effective May 12, 2004, and applicable to any pledge, lien or security interest of this state or any political
subdivision of this state, which was in existence on October 1, 2003, or created after October 1, 2003; June Sp. Sess.
P.A. 05-5 amended Subsec. (a) to increase the aggregate authorization from $741,030,000 to $781,030,000, of which
$20,000,000 is effective July 1, 2006, and amended Subsec. (d) to increase the aggregate authorization from $1,238,400,000
to $1,338,400,000, of which $100,000,000 is effective July 1, 2006, effective July 1, 2005; June Sp. Sess. P.A. 07-7
amended Subsec. (a) by increasing aggregate authorization from $781,030,000 to $961,030,000, of which $90,000,000 is
effective July 1, 2008, and amended Subsec. (d) by increasing aggregate authorization from $1,338,400,000 to
$1,753,400,000, of which $180,000,000 is effective July 1, 2008, effective November 2, 2007.