Sec. 7-260. Sale of bonds, notes or other obligations. Use of proceeds. - Connecticut Statutes

      Sec. 7-260. Sale of bonds, notes or other obligations. Use of proceeds. Bonds, notes or other obligations issued under authority of this chapter shall be sold by the municipality at par and accrued interest or at a discount. Notwithstanding the terms of any resolution or ordinance authorizing the issuance of bonds bearing a single rate of interest prior to October 1, 1977, the bonds, notes or other obligations may bear a single rate of interest, may bear different rates of interest for different maturities or may contain provisions for the method or manner of determining such rate or rates or the time or times at which interest is payable. The proceeds arising from the sale of any bonds, notes or other obligations issued under the authority of this chapter shall be delivered to the treasurer of the municipality and kept by him in accounts separate from other funds of the municipality. Said proceeds shall be expended only for the purposes and subject to the provisions of this chapter, provided the proceeds of sale of any bonds, notes or other obligations shall first be applied to the payment of such temporary notes as have been issued in anticipation of such issue.

      (1949, S. 327d; 1961, P.A. 466; 1967, P.A. 457, S. 2; 1972, P.A. 294, S. 4; P.A. 77-374, S. 2; P.A. 83-519, S. 16, 23; P.A. 86-350, S. 14, 28.)

      History: 1961 act deleted requirement that notice of sale be given in newspaper having circulation in municipality as well as in financial publication; 1967 act permitted private sale of notes issued in anticipation of proceeds from sale of bonds or sewer assessments and raised maximum interest rate from 5% to 6%; 1972 act deleted provision for 6% limit on interest; P.A. 77-374 added clause re ordinance or resolution in effect prior to October 1, 1977, and deleted provision limiting different rates to maximum of three; P.A. 83-519 eliminated requirements related to public sale of bonds or notes issued under chapter 103 to conform with more commonly adopted provisions authorizing municipalities to sell bonds, additionally such change is necessary if bonds issued under chapter 103 are to be consolidated with other types of bonds for sale as a single issue in accordance with Sec. 42b-15; P.A. 86-350 added references to "other obligations", provided for methods for determining rates and times of payments of interest, and authorized sales at less than par and accrued interest or at discount where previously sales at less than par and accrued interest were prohibited.

      See Title 42b re registered obligations of public entities.

      See Sec. 42b-1 for definitions re registered public obligations.

      See Sec. 42b-11 re effect of chapter 748 (Sec. 42b-1 et seq.) with respect to registered public obligations issued on or after July 7, 1983.

      See Sec. 42b-12 for requirement that this section and chapter 748 (Sec. 42b-1 et seq.) be construed in conjunction with the Uniform Commercial Code.

      See Sec. 42b-14 re severability of provisions relating to registered public obligations.