Sec. 32-80b. Energy improvement districts funding and revenue.
Sec. 32-80b. Energy improvement districts funding and revenue. (a) An energy
improvement district board may, from time to time, issue bonds subject to the approval
of the legislative body in the municipality in which the energy improvement district is
located for the purpose of paying all or any part of the cost of acquiring, purchasing,
constructing, reconstructing, improving or extending any energy improvement district
distributed resources project and acquiring necessary land and equipment thereof or for
any other authorized purpose of the board. The board may issue such types of bonds as
it may determine, including, but not limited to, bonds payable as to principal and interest:
(1) From its revenues generally; (2) exclusively from the income and revenues of a
particular project; or (3) exclusively from the income and revenues of certain designated
projects, whether or not they are financed in whole or in part from the proceeds of
such bonds. Any such bonds may be additionally secured by a pledge of any grant or
contribution from a participating municipality, the state or any political subdivision,
agency or instrumentality thereof, any federal agency or any private corporation, copartnership, association or individual, or a pledge of any income or revenues of the board,
or a mortgage on any project or other property of the board, provided such pledge shall
not create any liability on the entity making such grant or contribution beyond the amount
of such grant or contribution. Whenever and for so long as any board has issued and
has outstanding bonds, the board shall fix, charge and collect rates, rents, fees and other
charges in accordance with subsections (j) and (k) of this section. Neither the members
of the board nor any person executing the bonds shall be liable personally on the bonds
by reason of the issuance thereof. The bonds and other obligations shall so state on their
face that they shall not be a debt of the state or any political subdivision thereof, except
when the board or a participating municipality, in accordance with subsection (f) of
section 32-80c, has guaranteed payment of principal and of interest on the same, and
no person other than the board or such a public body shall be liable thereon, nor shall
such bonds or obligations be payable out of any funds or properties other than those
of the board or such a participating municipality. Such bonds shall not constitute an
indebtedness within the meaning of any statutory limitation on the indebtedness of any
participating municipality. Bonds of the board are declared to be issued for an essential
public and governmental purpose. In anticipation of the sale of such revenue bonds, the
board may issue negotiable bond anticipation notes and may renew the same from time
to time. The maximum maturity of any such note, including renewals thereof, shall not
exceed five years from the date of original issue. Such notes shall be paid from any
revenues of the board available therefor and not otherwise pledged or from the proceeds
of sale of the revenue bonds of the energy improvement district board in anticipation
of which they were issued. The board shall issue the notes in the same manner as the
revenue bonds. Such notes and the resolution or resolutions authorizing the same may
contain any provisions, conditions or limitations that a bond resolution of the board may
contain.
(b) An energy improvement district board may issue bonds as serial bonds, as term
bonds or as both. Bonds shall be authorized by resolution of the members of the authority
and shall bear such date or dates, mature at such time or times, not exceeding twenty
years from their respective dates, bear interest at such rate or rates, or have provisions
for the manner of determining such rate or rates, payable at such time or times, be in
such denominations, be in such form, either coupon or registered, carry such registration
privileges, be executed in such manner, be payable in lawful money of the United States
of America at such place or places, and be subject to such terms of redemption, as such
resolution or resolutions may provide. The revenue bonds or notes may be sold at public
or private sale for such price or prices as the energy improvement district board shall
determine. Pending preparation of the definitive bonds, the energy improvement district
board may issue interim receipts or certificates that shall be exchanged for such definitive
bonds.
(c) Any resolution or resolutions authorizing any revenue bonds or any issue of
revenue bonds may contain provisions, which shall be part of the contract with the
holders of the revenue bonds to be authorized, as to: (1) Pledging all or any part of the
revenues of a project or any revenue-producing contract or contracts made by the energy
improvement district board with any individual, partnership, corporation or association
or other body, public or private, to secure the payment of the revenue bonds or of any
particular issue of revenue bonds, subject to such agreements with bondholders as may
then exist; (2) the rentals, fees and other charges to be charged, the amounts to be raised
in each year thereby and the use and disposition of the revenues; (3) the setting aside
of reserves or sinking funds or other funds or accounts as the board may establish and
the regulation and disposition thereof, including requirements that any such funds and
accounts be held separate from or not be commingled with other funds of the board; (4)
limitations on the right of the board or its agent to restrict and regulate the use of the
project; (5) limitations on the purpose to which the proceeds of sale of any issue of
revenue bonds then or thereafter to be issued may be applied and pledging such proceeds
to secure the payment of the revenue bonds or any issue of the revenue bonds; (6)
limitations on the issuance of additional bonds, the terms upon which additional bonds
may be issued and secured and the refunding of outstanding bonds; (7) the procedure,
if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner
in which such consent may be given; (8) limitations on the amount of moneys derived
from the project to be expended for operating, administrative or other expenses of the
board; (9) defining the acts or omissions to act that shall constitute a default in the duties
of the board to holders of its obligations and providing the rights and remedies of such
holders in the event of a default; (10) the mortgaging of a project and the site thereof
for the purpose of securing the bondholder; and (11) 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.
(d) If any member whose signature or a facsimile of whose signature appears on
any bonds or coupons ceases to be such member before delivery of such bonds, such
signature or such facsimile shall nevertheless be valid and sufficient for all purposes as
if he had remained in office until such delivery. Notwithstanding the provisions of sections 32-80a to 32-80c, inclusive, or any recitals in any bonds issued pursuant to subsections (a) to (h), inclusive, of this section, all such bonds shall be deemed to be negotiable
instruments under the provisions of the general statutes.
(e) Unless otherwise provided by the ordinance creating the energy improvement
district board, the board may issue bonds pursuant to subsections (a) to (h), inclusive,
of this section, without obtaining the consent of the state or of any political subdivision
thereof and without any other proceedings or conditions specifically required by sections
32-80a to 32-80c, inclusive.
(f) An energy improvement district board may, within available funds, purchase its
bonds or notes. The energy improvement district board may hold, pledge, cancel or
resell such bonds, subject to and in accordance with agreements with bondholders.
(g) An energy improvement district board shall cause a copy of any bond resolutions
adopted by it to be filed for public inspection in its office and in the office of the clerk
of each participating municipality and may thereupon cause to be published at least
once, in a newspaper published or circulating in each participating municipality, a notice
stating the fact and date of such adoption and the places where such bond resolution
has been so filed for public inspection and the date of the first publication of such
notice and also stating that any action or proceeding of any kind or nature in any court
questioning the validity or proper authorization of bonds provided for by the bond resolution, or the validity of any covenants, agreements or contracts provided for by the bond
resolution, shall be commenced not later than twenty days after the first publication of
such notice. If any such notice is published and if no action or proceeding questions the
validity or proper authorization of bonds provided for by the bond resolution referred
to in such notice or the validity of any covenants, agreements or contracts provided for
by the bond resolution is commenced or instituted not later than twenty days after the
first publication of said notice, then all residents and taxpayers and owners of property
in each participating municipality and all other persons shall be forever barred and
foreclosed from instituting or commencing any action or proceeding in any court or
from pleading any defense to any action or proceeding questioning the validity or proper
authorization of such bonds or the validity of such covenants, agreements or contracts,
and said bonds, covenants, agreements and contracts shall be conclusively deemed to
be valid and binding obligations in accordance with their terms and tenor.
(h) Notwithstanding any provision of the general statutes, (1) the state shall not
have any liability or responsibility with regard to any obligation issued by the board,
and (2) no political subdivision of the state shall have any liability or responsibility with
regard to any obligation issued by the board except as expressly provided by sections
32-80a to 32-80c, inclusive.
(i) An energy improvement district board may secure any bonds issued pursuant to
subsection (b) of section 32-80a by a trust indenture by way of conveyance, deed of
trust or mortgage of any project or any other property of the board, whether or not
financed in whole or in part from the proceeds of such bonds, or by a trust agreement
by and between the board and a corporate trustee, which may be any trust company or
bank having the powers of a trust company within or without the state or by both such
conveyance, deed of trust or mortgage and indenture or trust agreement. Such trust
indenture or agreement may pledge or assign any or all fees, rents and other charges to
be received or proceeds of any contract or contracts pledged, and may convey or mortgage any property of the board. Such trust indenture or agreement may contain such
provisions for protecting and enforcing the right and remedies of the bondholders as
may be reasonable and proper and not in violation of law, including provisions that have
been specifically authorized to be included in any resolution or resolutions of the board
authorizing the issue of bonds. Any bank or trust company incorporated under the laws
of the state may act as depository of the proceeds of such bonds or of revenues or other
moneys and may furnish such indemnifying bonds or pledge such securities as may be
required by the board. Such trust indenture may set forth rights and remedies of the
bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition, such trust indenture or agreement may contain such other provisions
as the board may deem reasonable and proper for the security of the bondholders. All
expenses incurred in carrying out the provisions of such trust indenture or agreement
may be treated as part of the cost of a project.
(j) An energy improvement district board may fix, revise, charge and collect rates,
rents, fees and charges for the use of and for the services furnished or to be furnished
by each project and to contract with any person, partnership, association or corporation,
or other body, public or private, in respect thereof. Such rates, rents, fees and charges
shall be fixed and adjusted in respect of the aggregate of rates, rents, fees and charges
from such project so as to provide funds sufficient with other revenues, if any, to (1)
pay the cost of maintaining, repairing and operating the project and each and every
portion thereof, to the extent that the payment of such cost has not otherwise been
adequately provided for, (2) pay the principal and interest of outstanding revenue bonds
of the board issued in respect of such project as the same shall become due and payable,
and (3) create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, such revenue bonds of the board. Such rates, rents,
fees and charges shall not be subject to supervision or regulation by any department,
commission, board, body, bureau or agency of this state other than the board. A sufficient
amount of the revenues derived in respect of a project, except such part of such revenues
as may be necessary to pay the cost of maintenance, repair and operation and to provide
reserves and for renewals, replacements, extensions, enlargements and improvements
as may be provided for in the resolution authorizing the issuance of any revenue bonds
of the board or in the trust agreement securing the same, shall be set aside at such regular
intervals as may be provided in such resolution or trust agreement in a sinking or other
similar fund which is hereby pledged to, and charged with, the payment of the principal
of and the interest on such revenue bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided.
Such pledge shall be valid and binding from the time when the pledge is made; the rates,
rents, fees and charges and other revenues or other moneys so pledged and thereafter
received by the board shall immediately be subject to the lien of any such pledge, without
any physical delivery thereof or further act, and 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 board, irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust indenture or agreement by which a pledge is created
need be filed or recorded except in the records of the board. The use and disposition of
moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust indenture or
agreement, such sinking or other similar fund shall be a fund for all revenue bonds issued
to finance a project of such board without distinction or priority of one over another.
(k) All moneys received by the board pursuant to sections 32-80a to 32-80c, inclusive, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided pursuant to this subsection and
subsection (j) of this section.
(l) Any holder of bonds, notes, certificates or other evidences of borrowing issued
pursuant to subsection (b) of section 32-80a or of any of the coupons appertaining thereto
and the trustee under any trust indenture or agreement, except to the extent the right
may be restricted by such trust indenture or agreement, may, either at law or in equity,
by suit, action, injunction, mandamus or other proceedings, protect and enforce any and
all rights under the provisions of the general statutes or granted by sections 32-80a to
32-80c, inclusive, or under such trust indenture or agreement or the resolution authorizing the issuance of such bonds, notes or certificates, and may enforce and compel the
performance of all duties required by said sections or by such trust indenture or
agreement or solution to be performed by the energy improvement district board or by
any officer or agent thereof, including the fixing, charging and collection of fees, rents
and other charges.
(P.A. 07-242, S. 24-27.)
History: P.A. 07-242 effective June 4, 2007.