Sec. 3-76r. Municipal refunding bonds. Requisites. Proceeds. Excluded from aggregate municipal indebtedness. Presumption re authorization.
Sec. 3-76r. Municipal refunding bonds. Requisites. Proceeds. Excluded from
aggregate municipal indebtedness. Presumption re authorization. (a) Notwithstanding the provisions of any other general statute, public act or special act of the
General Assembly and notwithstanding the provisions of any charter or other organic
law, ordinance or resolution of any municipality, for the purpose of paying, funding or
refunding all or any part of its existing and outstanding bonds and the interest thereon,
which are, unless paid from other sources, payable from assessments or from ad valorem
taxes which may be levied without limitations as to rate or amount upon all the taxable
real property in the municipality except certain classes of property, taxes on which are
subject to limitations prescribed by law, the governing body of any municipality is
empowered, when in legal meeting assembled, by vote of the majority of the members
of said body present and voting, to authorize the issuance, sale and delivery at one time
and from time to time under the corporate name and seal and upon the credit of said
municipality, municipal refunding bonds pursuant to the provisions of this part and to
authorize the officer of the municipality authorized to execute such bonds, to execute
a contract on behalf of said municipality with the Treasurer, acting on behalf of the
state, for the sale and delivery of such municipal refunding bonds to the state at such
rate or rates of interest and in such principal amount and containing such provisions,
including deposit and the investment of the proceeds thereof and the payment of fees
and charges, if any, as shall effectuate and not be inconsistent with the provisions of
this part, and except for such vote of the governing body of such municipality, the
authorization, issuance and delivery of municipal refunding bonds by a municipality
shall not require a public hearing thereon or approval by vote of the freemen, electors
or other legislative body of such municipality. The authorization of municipal refunding
bonds shall be deemed to be and shall be treated as an appropriation of the municipality
for the purpose of paying, funding or refunding all or any part of the bonds and the
interest thereon referred to in such authorization; such authorization of the municipal
refunding bonds and such municipal refunding bonds shall provide that the same and
the interest thereon are payable, unless paid from other sources, from assessments or
from ad valorem taxes which may be levied without limitation as to rate or amount upon
all the taxable real property in the municipality except the certain classes of property
taxes on which are subject to limitations prescribed by law, which assessments or taxes
are hereby authorized to be budgeted, levied and assessed and otherwise raised in the
same manner, time and pursuant to the same procedure as would otherwise obtain with
respect to such bonds being paid, funded or refunded. Municipal refunding bonds authorized and issued pursuant to this section shall be sold without public advertisement and
delivered to the Treasurer pursuant to such contract provided, however, the Treasurer
shall not purchase such bonds nor accept delivery of such bonds unless and until at
or prior to such purchase and delivery there is delivered to the Treasurer a record of
proceedings with respect to such bonds and a copy of the opinion of counsel approving
the legality of the particular issue of bonds being paid, funded or refunded by such
municipal refunding bonds.
(b) In accordance with the provisions of such contract with the Treasurer relating
to such municipal refunding bonds, in any proceeding of the governing body of a municipality authorizing the issuance of municipal refunding bonds, such governing body shall
include provision for the date or dates of such bonds, the maturity date or dates of such
bonds, provided such municipal refunding bonds shall not mature later than the maturity
date of the bonds paid, funded or refunded by such bonds, provision for either serial or
term bonds or any combination thereof, provision for sinking fund or other reserve fund
requirements, the designation of such bonds, the form of such bonds and, except as
otherwise provided in this section, registration, conversion and transfer privileges and
such other terms and conditions of such bonds, not inconsistent with this part, as such
governing body may provide. Municipal refunding bonds and, if coupon bonds, the
coupons appertaining thereto, shall be executed, sealed and attested in the manner provided for other bonds of the municipality, shall be printed or typed, shall be in denominations of one thousand dollars or any full multiple thereof, shall be issued in the form of
fully registered bonds for each maturity date convertible at the option of the holder
thereof into coupon bonds with coupons attached, shall bear and state such terms of
redemption, with or without premium, as the contract with the state relating to such
municipal refunding bonds may provide and shall set forth the amount, maturity, interest
rate, date thereof, and dates of payment of principal of and interest thereon and the
place or places at which same are payable and other appropriate provisions identifying
the issue.
(c) Municipal refunding bonds authorized pursuant to this section shall bear such
rate or rates of interest, and shall be issued in such principal amount, not exceeding by
ten per centum the principal amount of the bonds being paid, funded or refunded by
such municipal refunding bonds, as the contract with the Treasurer shall provide, provided, the total amount of principal and interest for which the municipality is indebted
by the terms of such municipal refunding bonds to their maturity shall not exceed the
total amount of the principal and interest for which the municipality is indebted on the
outstanding bonds being paid, funded or refunded by such municipal refunding bonds.
(d) The provisions of this part relating to the authorization, issuance, sale and delivery of the municipal refunding bonds, the terms of such bonds and deposit of the proceeds
of such bonds shall be considered full and complete authorization for the borrowing of
money and incurring of indebtedness by the municipality for the purposes of this part and
for its governing body and authorized officers to do or execute such acts or instruments as
may be necessary or desirable in connection therewith notwithstanding any other general
statute, public act or special act or charter, organic law, ordinance or resolution, to the
contrary, inconsistent or otherwise requiring, limiting or making additional provisions
in connection with the authorization, issuance, sale, certification, delivery and terms,
and deposit of the proceeds, of bonds of a municipality.
(e) Upon the issuance, sale and delivery of municipal refunding bonds as provided
in this section, the proceeds of said bonds shall be deposited in the municipal refunded
bond escrow account and shall be held and applied in the manner provided in section
3-76l. Such municipal refunding bonds when issued and delivered as provided in this
section, shall be obligatory on the municipality issuing such bonds and the inhabitants
thereof according to the tenor and purpose thereof. Said municipality shall provide for
the payment of the interest on such municipality refunding bonds as it shall become due
and shall also provide for the payment of those municipal refunding bonds which in any
year are required to be paid.
(f) Notwithstanding the provisions of section 7-374 or any special act or charter,
in computing the aggregate indebtedness of any municipality, there shall be excluded
municipal refunding bonds issued and delivered by such municipality pursuant to this
part, provided the principal amount of such municipal refunding bonds issued and delivered in excess of the principal amount of the bonds paid, funded or refunded by such
municipal refunding bonds shall not be excluded, unless the bonds so paid, funded or
refunded are excluded from such computation by any other general statute, public act
or special act of the General Assembly.
(g) After issuance and delivery, all municipal refunding bonds of a municipality
shall be conclusively presumed to be fully authorized, issued and delivered in accordance
with this part and all laws of this state, and any person or governmental unit shall be
estopped from questioning their authorization, sale, issuance, execution or delivery by
such municipality.
(P.A. 73-591, S. 18, 21; P.A. 74-338, S. 63, 94.)
History: P.A. 74-338 made technical changes.