Sec. 7-378e. Extended time for renewal of temporary notes.
Sec. 7-378e. Extended time for renewal of temporary notes. Notwithstanding
the provisions of sections 7-378a and 10-56 and any other public or special act or charter
or bond ordinance or bond resolution which limits the renewal of temporary notes issued
in anticipation of the receipt of the proceeds of bond issues to four years from the date
of the original notes, any town, as defined in section 7-378, or regional school district
may renew temporary notes in accordance with the provisions of this section for an
additional period of not more than four years from the end of such four-year period
immediately following the date of the original notes. The officers or board authorized
to issue the bonds or determine the particulars of the bonds may adopt a resolution
authorizing the renewal of temporary notes for such additional period under the following conditions: (a) All project grant payments received shall be promptly applied toward
project costs or toward payment of such temporary notes as the same shall become due
and payable or shall be deposited in trust for such purposes; (b) no later than the end of
each period of twelve months after the end of the four-year period immediately following
the date of the original notes a portion of such temporary notes equal to at least one-twentieth of the town's or district's estimated net cost of the project shall be retired from
funds other than project grants or note proceeds; (c) the interest on all temporary notes
renewed after such four-year period immediately following the date of the original notes
pursuant to this section shall be paid from funds other than project grants or note proceeds; (d) the principal amount of each bond issue when sold shall be reduced by the
amounts spent under subdivision (b) of this section, and the principal of such bonds
shall be paid in annual installments commencing no later than one year from the date
of issue; and (e) the maximum authorized term of the bonds when sold shall be reduced
by not less than the number of months from the end of such four-year period immediately
following the date of the original notes to the date of issue. For sewer projects the annual
payments required under subdivision (b) of this section shall be at least one-thirtieth of
the town's estimated net cost of the sewer project. Any federal or state grants which are
to be paid over a period of years to reimburse the town or district for a portion of principal
due on bonds or notes may be used in computing the town's or district's net cost of the
project. Any town or district in which such resolution is passed shall include in its annual
budget or shall otherwise appropriate sufficient funds to make the payments required
by subdivisions (b) and (c) of this section. This section shall not relieve any town from
complying with the provisions of section 7-378a in renewing temporary notes for a
period of not more than four years. In no event shall any notes renewed pursuant to the
provisions of this section be due and payable later than June 30, 1984.
(P.A. 80-320, S. 1, 4; P.A. 82-24, S. 1, 5.)
History: P.A. 82-24 extended period for which towns or regional school districts may renew temporary notes under
this section from two years to four years, which period of renewal is in addition to the period of four years from the date
of the original notes as allowed under Sec. 7-378a and is subject to the same conditions re note retirement in the additional
two years as in the two years preceding and extended date by which any notes renewed under this section must be payable
to June 30, 1984.
See Secs. 7-378 to 7-378c, inclusive, re issuance of temporary notes, generally.