Sec. 7-136n. Joint issuance of bonds by two or more municipalities.
Sec. 7-136n. Joint issuance of bonds by two or more municipalities. (a) Two
or more municipalities may jointly issue bonds from time to time at their discretion,
subject to the approval of the legislative body of each municipality for the purpose of
paying all or any part of the cost of any project or activity, including acquisition of
necessary land and equipment therefor, entered into jointly. The municipalities may
issue such types of bonds as they may determine, including, without limiting the generality of the foregoing, bonds payable as to principal and interest: (1) From their 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 municipalities, or a mortgage
on any project or other property of the municipalities. Whenever and for as long as the
municipalities have issued and have outstanding bonds pursuant to sections 7-136n to
7-136s, inclusive, the municipalities shall fix, charge and collect rates, rents, fees and
other charges. No person executing the bonds shall be liable personally on the bonds
by reason of the issuance thereof. The bonds and other obligations of the municipalities,
and such bonds and obligations shall so state on their face, shall not be a debt of the
state or any political subdivision thereof except the municipalities issuing such bonds,
and no person other than the municipalities shall be liable thereon, nor shall such bonds
or obligations be payable out of any funds or properties other than those of a participating
municipality. Except to the extent and for the purpose therein expressly provided by
other laws, such bonds shall not constitute an indebtedness within the meaning of any
statutory limitation on the indebtedness of any participating municipality. Bonds of
participating municipalities are declared to be issued for an essential public and governmental purpose. In anticipation of the sale of such revenue bonds the municipalities
may issue negotiable bond anticipation notes and may renew the same from time to
time, but the maximum maturity of any such note, including renewals thereof, shall not
exceed five years from the date of issue of the original note. Such notes shall be paid
from any revenues of the municipalities available therefor and not otherwise pledged,
or from the proceeds of sale of the revenue bonds of the municipalities in anticipation
of which they were issued. The notes shall be issued 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 which a bond resolution of the municipalities
may contain.
(b) Bonds of the municipalities may be issued as serial bonds or as term bonds, or
the municipalities, in their discretion, may issue bonds of both types. Bonds shall be
authorized by resolution of the members of the municipality and shall bear such date
or dates, mature at such time or times, not exceeding fifty 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 municipalities shall determine. Pending preparation of the definitive
bonds, the municipalities may issue interim receipts or certificates which 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 a 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
municipalities 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, and 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 municipalities 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 municipalities; (4) limitations on the right of the municipalities 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; 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 municipalities; (9) defining the acts or omissions to act which shall constitute a
default in the duties of the municipalities 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 bondholders; 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 officer whose signature or a facsimile of whose signature appears on any
bonds or coupons ceases to be such officer before delivery of such bonds, such signature
or such facsimile shall nevertheless be valid and sufficient for all purposes the same as
if he had remained in office until such delivery. All such bonds shall be deemed to be
negotiable instruments under the provisions of the general statutes.
(e) Bonds may be issued without obtaining the consent of any commission, board,
bureau or agency of the state or of any political subdivision, and without any other
proceedings or the happening of other conditions or things than those proceedings,
conditions or things which are specifically required by said sections.
(f) The municipalities shall have power out of any funds available therefor to purchase its bonds or notes. The municipalities may hold, pledge, cancel or resell such
bonds, subject to and in accordance with agreements with bondholders.
(g) The municipalities shall cause a copy of any bond resolution 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 also 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 within twenty days after the first publication of such notice. If any such
notice is published and if no action or proceeding questioning 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 within 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.
(P.A. 98-237, S. 6; P.A. 06-196, S. 38.)
History: (Revisor's note: In codifying this section, an incorrect reference in section 6(a) of P.A. 98-237 to "... pursuant
to sections 10 to 15, inclusive, of this act, ..." was deemed by the Revisors to read "... pursuant to sections 6 to 11, inclusive,
of this act, ..." and codified accordingly); P.A. 06-196 made a technical change in Subsec. (a), effective June 7, 2006.