Sec. 8-134. Bonds: Authorization; terms, security, payment. Issuance by Connecticut Development Authority or its subsidiary for specified project.
Sec. 8-134. Bonds: Authorization; terms, security, payment. Issuance by Connecticut Development Authority or its subsidiary for specified project. For the purpose of carrying out or administering a redevelopment plan or other functions authorized
under this chapter, a municipality, acting by and through its redevelopment agency, is
hereby authorized, subject only to the limitations and procedures set forth in this section,
to issue from time to time bonds of the municipality which are payable solely from and
secured by: (a) A pledge of and lien upon any or all of the income, proceeds, revenues and
property of redevelopment projects, including the proceeds of grants, loans, advances or
contributions from the federal government, the state or other source, including financial
assistance furnished by the municipality or any other public body pursuant to section
8-135; (b) taxes or payments in lieu of taxes, or both, in whole or in part, allocated to
and paid into a special fund of the municipality pursuant to the provisions of section 8-134a; or (c) any combination of the methods in subsections (a) and (b) of this section.
For the purposes of a specified project only, the Connecticut Development Authority
may, upon a resolution with respect to such project adopted by the legislative body of
the municipality, issue and administer bonds which are payable solely or in part from
and secured by the pledge and security provided for in this section subject to the general
terms and provisions of law applicable to the issuance of bonds by the Connecticut
Development Authority, except that the provisions of subsection (b) of section 32-23j
shall not apply. Any bonds payable and secured as provided in this section shall be
authorized by a resolution adopted by the legislative body of the municipality, notwithstanding the provisions of any other statute, local law or charter governing the authorization and issuance of bonds generally by the municipality. No such resolution shall be
adopted until after a public hearing has been held upon such authorization. Notice of
such hearing shall be published not less than five days prior to such hearing in a newspaper having a general circulation in the municipality. Such bonds shall be issued and
sold in such manner; bear interest at such rate or rates, including variable rates to be
determined in such manner as set forth in the proceedings authorizing the issuance of the
bonds; provide for the payment of interest on such dates, whether before or at maturity; be
issued at, above or below par; mature at such time or times not exceeding forty years
from their date in the case of bonds issued to finance housing and facilities related thereto
or thirty years from their date in all other cases; have such rank or priority; be payable
in such medium of payment; be issued in such form, including, without limitation, registered or book-entry form, carry such registration and transfer privileges and be made
subject to purchase or redemption before maturity at such price or prices and under such
terms and conditions, including the condition that such bonds be subject to purchase
or redemption on the demand of the owner thereof; and contain such other terms and
particulars as the legislative body of the municipality or the officers delegated such
authority by the legislative body of the municipality body shall determine. The proceedings under which bonds are authorized to be issued may, subject to the provisions of
the general statutes, contain any or all of the following: (1) Provisions respecting custody
of the proceeds from the sale of the bonds and any bond anticipation notes, including
any requirements that such proceeds be held separate from or not be commingled with
other funds of the municipality; (2) provisions for the investment and reinvestment of
bond proceeds until such proceeds are used to pay project costs and for the disposition
of any excess bond proceeds or investment earnings thereon; (3) 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; (4) provisions for the collection, custody, investment, reinvestment
and use of the pledged revenues or other receipts, funds or moneys pledged for payment
of bonds as provided in this section; (5) provisions regarding the establishment and
maintenance of reserves, sinking funds and any other funds and accounts as shall be
approved by the legislative body of the municipality in such amounts as may be established by the legislative body of the municipality 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 municipality; (6) covenants for the establishment of maintenance requirements with respect to facilities and properties; (7) provisions for the issuance of additional bonds on a parity with bonds issued prior to the
issuance of such additional bonds, including establishment of coverage requirements
with respect to such bonds as herein provided; (8) provisions regarding the rights and
remedies available to the bond owners, note owners or any trustee under any contract,
loan agreement, document, instrument or trust indenture in case of a default, including
the right to appoint a trustee to represent their interests upon occurrence of any event
of default, as defined in any such default proceedings, provided that if any bonds or
bond anticipation notes are secured by a trust indenture, the respective owners of such
bonds or notes shall have no authority except as set forth in such trust indenture to
appoint a separate trustee to represent them; and (9) other provisions or covenants of
like or different character from the foregoing which are consistent with this section
and which the legislative body of the municipality determines in such proceedings are
necessary, convenient or desirable in order to better secure the bonds or bond anticipation
notes, or will tend to make the bonds or bond anticipation notes more marketable, and
which are in the best interests of the municipality. Any provisions which may be included
in proceedings authorizing the issuance of bonds under this section may be included in
an indenture of trust duly approved in accordance with this section which secures the
bonds and any notes issued in anticipation thereof, and in such case the provisions of
such indenture shall be deemed to be a part of such proceedings as though they were
expressly included therein. Any pledge made by the municipality shall be valid and
binding from the time when the pledge is made, and any revenues or other receipts,
funds or moneys so pledged and thereafter received by the municipality shall be subject
immediately to the lien of such pledge without any physical delivery thereof or further
act. 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 municipality, irrespective
of whether such parties have notice of such lien. Neither the resolution nor any other
instrument by which a pledge is created need be recorded. The legislative body of the
municipality may enter into a trust indenture by and between the municipality and a
corporate trustee, which may be any trust company or bank having the powers of a trust
company within or without the municipality. Such trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the bond owners and
note owners as may be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the municipality in relation to the exercise of its
powers pursuant to this section and the custody, safeguarding and application of all
moneys. The municipality may provide by such trust indenture for the payment of the
pledged revenues or other receipts, funds or moneys to the trustee under such trust
indenture or to any other depository, and for the method of disbursement thereof, with
such safeguards and restrictions as it may determine. All expenses incurred in carrying
out such trust indenture may be treated as project costs. Such bonds shall not be included
in computing the aggregate indebtedness of the municipality, provided, if such bonds
are made payable, in whole or in part, from funds contracted to be advanced by the
municipality, the aggregate amount of such funds not yet appropriated to such purpose
shall be included in computing the aggregate indebtedness of the municipality. As used
in this section, "bonds" means any bonds, including refunding bonds, notes, interim
certificates, debentures or other obligations. For purposes of this section and section 8-134a, references to the Connecticut Development Authority shall include any subsidiary
of the Connecticut Development Authority established pursuant to subsection (l) of
section 32-11a.
(1953, S. 492d; September, 1957, P.A. 11, S. 11; P.A. 74-319, S. 1; P.A. 87-572, S. 1, 5; P.A. 88-233, S. 1, 5; P.A. 89-230, S. 2, 4; P.A. 98-237, S. 1; P.A. 01-179, S. 2.)
History: P.A. 74-319 allowed issuance of bonds payable from and secured by taxes or by combination of taxes and lien
of assets of redevelopment projects if approved by local legislative body and allowed deferral of principal payment for up
to 5 years; P.A. 87-572 made extensive amendments in procedures for issuance and payment of debt; P.A. 88-233 included
payments made from payments in lieu of taxes; P.A. 89-230 provided for 40-year maturity limits for bonds which finance
housing and related facilities; P.A. 98-237 authorized the Connecticut Development Authority to issue bonds for a specified
project upon approval of the legislative body of the municipality in which the project is located; P.A. 01-179 added
provisions authorizing bonds to be payable in part from and secured by pledge and security provided for in section and
specifying that references to the Connecticut Development Authority include its subsidiaries.
Cited. 201 C. 305.
Prior rejection of bond issue for redevelopment project by voters does not restrict legislative body from again considering
matter and calling second referendum. 21 CS 212.