§ 7-370c — Authority to issue refunding bonds for payment, funding or refunding of bonds, notes or other obligations previously issued.

Connecticut § 7-370c

• Jurisdiction: Connecticut
• Title 7: Municipalities
• Ch. 109: Municipal Bond Issues

Text

(a) Any municipality, as defined in section 7-369, which has issued bonds, notes or other obligations pursuant to any public or special act may issue refunding bonds for the purpose of paying, funding or refunding prior to maturity all or any part of such municipality's bonds, notes or other obligations, the redemption premium, if any, with respect thereto, the interest thereon, the costs with respect to the issuance of such refunding bonds and the payment of such refunded bonds, notes or other obligations. Such refunding bonds shall mature not later than (1) in the case of a single series of bonds, notes or other obligations being refunded, the final maturity date thereof; and (2) in the case of multiple series of bonds, notes or other obligations being refunded, the final maturity date of any such series last to occur. (b) (1) Notwithstanding the provisions of subdivisions (1) and (2) of subsection (a) of this section and contingent on the passage of a resolution by a two-thirds vote of the legislative body of the municipality, any such refunding bonds issued on or after July 1, 2017, but prior to July 1, 2027, shall mature not later than thirty years from the date of the issuance of such refunding bonds. (2) Refunding bonds issued pursuant to subdivision (1) of this subsection may be secured by a statutory lien, if provided for in such resolution, on all revenues received by the municipality from its tax levy and collection. Such lien shall arise by operation of this subdivision automatically without any further action or authorization by the municipality and such revenues shall be immediately subject to the lien. The lien shall immediately attach to such revenues and be valid and binding as against the municipality, its successors, transferees and creditors and all other parties asserting rights to such revenues, without any physical delivery, recordation or filing of the lien or further act, irrespective of whether such successors, transferees, creditors or other parties have notice of the lien. (c) Notwithstanding the provisions of the general statutes or any special act, local law or charter governing the authorization and issuance of bonds, notes or other obligations and the appropriation of the proceeds thereof, such refunding bonds shall be authorized, and the proceeds appropriated for the purposes permitted under this section, by resolution of the legislative body of the municipality, and shall be subject to the same limitations and requirements as bonds issued pursuant to this chapter, provided the provisions of section 7-371 regarding limitations on the date of the first maturity, or on the amount of any principal or on any principal and interest installments on any bonds, shall not apply to refunding bonds issued (1) under subsection (b) of this section, or (2) under subsection (a) of this section that achieve net present value savings after comparing total debt service payable on the refunding bonds to the total debt service payable on the refunded bonds, after accounting for costs of issuance and underwriters' discount. (d) As used in this section, “legislative body” means (1) the board of selectmen in a town that does not have a charter, special act or home rule ordinance relating to its government, (2) the council, board of aldermen, representative town meeting, board of selectmen or other elected legislative body described in a charter, special act or home rule ordinance relating to government in a city, consolidated town and city, consolidated town and borough or a town having a charter, special act, consolidation ordinance or home rule ordinance relating to its government, (3) the board of burgesses or other elected legislative body in a borough, or (4) the district committee or other elected legislative body in a district, metropolitan district or other municipal corporation. See Sec. 7-380b re issuance of bonds, notes or other obligations authorized before June 23, 1993.

Legislative History

(P.A. 83-408, S. 2, 6; P.A. 86-350, S. 7, 28; P.A. 93-158, S. 1, 11; P.A. 99-97, S. 1, 6; P.A. 02-108, S. 2; P.A. 17-147, S. 47; P.A. 22-118, S. 464.) History: P.A. 86-350 made a variety of changes for purposes of clarification, updating the statutes to conform to current financial practices and to conform to anticipated changes in federal tax policy; P.A. 93-158 provided that refunding bonds could be authorized by resolution of the legislative body rather than in the same manner as the original bond and defined “legislative body”, effective June 23, 1993; P.A. 99-97 added provision to clarify that municipalities include the redemption premium and the cost of issuance in the total amount refunded, effective June 3, 1999; P.A. 02-108 made a technical change and exempted certain refunding bonds from the requirements of Sec. 7-371 re limitations on the date of first maturity or the amount of such bonds, effective May 29, 2002; P.A. 17-147 designated existing provisions re issuances and maturity of refunding bonds as Subsec. (a), added Subsec. (b) re authorization of refunding bonds issued on or after July 1, 2017 but prior to July 1, 2022, designated existing provisions re authorization, limitations and requirements of refunding bonds as Subsec. (c) and amended same to add Subdiv. (1) re subsection (b) and add Subdiv. (2) designator, designated existing provision re definition of “legislative body” as Subsec. (d) and amended same to redesignate Subparas. (A) to (D) to Subdivs. (1) to (4) and made technical and conforming changes, effective July 1, 2017; P.A. 22-118 amended Subsec. (b)(1) to replace “July 1, 2022” with “July 1, 2027”, effective July 1, 2022.