Sec. 13a-175t. Project loans. Municipal procedures. - Connecticut Statutes

      Sec. 13a-175t. Project loans. Municipal procedures. (a) A municipality may authorize (1) the execution and delivery of project loan agreements; (2) the issuance and sale of project loan obligations to finance its obligations under a project loan agreement; and (3) the issuance and sale of its supplemental project obligations, in accordance with such statutory and other legal requirements as govern the issuance of obligations and the making of contracts by the municipality. Obligations authorized under this section shall be subject to the debt limitation provisions of section 7-374.

      (b) The legislative body of a municipality shall hold at least one public hearing on an eligible bridge project, including the authorization of project loan obligations and supplemental project obligations with respect thereto, prior to its vote on the approval or disapproval of the eligible bridge project and the authorization of financing therefor. Notice of the time, place and purpose of the hearing shall be published in a newspaper having general circulation in the municipality not less than five days prior to the day on which such hearing is to be held. For the purposes of this subsection, such five-day period shall include the day upon which such notice is first published, and shall include any Saturday, Sunday or legal holiday which may intervene between such publication and the day on which such hearing is held, but shall not include the day upon which such hearing is held.

      (c) Each project loan obligation issued pursuant to this section shall bear interest at the rate of six per cent per annum payable quarterly, shall mature in such amounts and at such time or times not later than ten years from the date thereof and shall contain such other terms and provisions as the project loan agreement under which it is issued provides.

      (d) Project loan obligations and supplemental project obligations shall be general obligations of the issuing municipality and each such obligation shall recite that the full faith and credit of the issuing municipality are pledged for the payment of the principal thereof and interest thereon.

      (e) Whenever a municipality has authorized the issuance of project loan obligations or supplemental project obligations, it may authorize the issuance of temporary notes in anticipation of the receipt of the proceeds from the issuance of its project loan obligations or supplemental project obligations. Such temporary notes may be renewed from time to time by the issuance of other notes, provided that any such renewals shall conform to all legal requirements and limitations applicable thereto, including the requirements and limitations set forth in sections 7-378 and 7-378a.

      (f) Except as otherwise provided in this section, project loan obligations, supplemental project obligations and temporary notes issued in anticipation of the receipt of the proceeds thereof shall be issued by a municipality in accordance with such statutory and other legal requirements as govern the issuance of such obligations generally by such municipality, including, where applicable, the provisions of chapter 109.

      (P.A. 84-254, S. 12, 62; P.A. 87-224, S. 1, 4.)

      History: P.A. 87-224 amended Subsec. (b) by changing the time notice of a hearing is published from at least ten days to not less than five days prior to the day on which the hearing is held, and by defining the five-day period.