Sec. 7-378b. Temporary notes re bonds for sewer project with commitment for state or federal grant.
Sec. 7-378b. Temporary notes re bonds for sewer project with commitment
for state or federal grant. Any town, as defined in section 7-378, which has temporary
notes outstanding in anticipation of the receipt of the proceeds from the sale of bonds
authorized for a sewer project, and which has a written commitment for a state or federal
grant for such project but has not received its final grant payment within four years from
the date of the original notes, may renew such notes from time to time, in terms of not
more than six months, in anticipation of the receipt of such final grant payment without
regard to the provisions of section 7-378a or of sections 7-264, 7-378, or any other
sections of the general statutes, public act, special act, or charter, or of any ordinance
or resolution or vote adopted prior to July 1, 1977, which limit the time for renewing
temporary notes issued in anticipation of the receipt of the proceeds of bond issues,
provided that (a) the total amount of such notes shall not exceed the amount of the grant
commitment which has not been paid to the town; and (b) all grant payments received
by the town, 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 with a bank or trust company. This section shall not apply if the federal
or state grant is to be paid over a period of years to reimburse the town for a portion of
principal due on bonds or notes.
(P.A. 77-525, S. 1, 3.)
See Sec. 7-378c re effective date of section.
See Sec. 7-378f re renewal of temporary notes to finance sewers in town without operating system connected to treatment plant.