Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Any bonds issued by the city of Holyoke for acquiring land for and constructing, originally equipping, and furnishing the Dean Vocational/Technical high school shall be made payable in accordance with this section. The first annual principal payment on each issue of bonds shall be payable not later than two years after the date of the bonds and the maturities of the bonds shall be arranged so that for each issue, beginning with the first required principal payment, the annual combined payments of principal and interest shall be as nearly equal as practicable in the opinion of the city treasurer, or shall be arranged in accordance with a schedule providing for a more rapid amortization of principal; provided, however, said bonds shall be payable not later than twenty years from their dates. Except as provided in this act the authorization and issuance by the city of bonds or notes for such project shall be subject to the applicable provisions of chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight and chapter forty-four of the General Laws.
SECTION 2. The proceeds of any construction grant approved pursuant to chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight for such project shall be paid to the trustee appointed in accordance with section four and shall be held in trust and applied by said trustee to pay principal and interest on the bonds issued by the city for such project and interest on any notes issued in anticipation of the bonds. Each annual grant payment shall be made not later than fifteen days prior to the date on which the first payment of interest on the bonds or notes is due in that fiscal year.
SECTION 3. At least ten days prior to each date on which a payment of principal or interest is due on bonds or notes issued by the city for such project, the treasurer shall deposit with said trustee the amount necessary to make such payment, after taking into account all other moneys held by said trustee that are available for that purpose.
SECTION 4. Any funds to be held in trust under sections two and three shall be deposited for the account of the city with a trustee as provided in section two, which may be any trust company or bank having the powers of a trust company within the commonwealth. The treasurer of the city with the approval of the mayor shall appoint such trustee and shall execute a trust agreement in such form as they may determine to be necessary or appropriate. Any such funds held in trust may be invested in accordance with the provisions of section fifty-four of chapter forty-four of the General Laws, and the trust agreement may provide that any investment earnings shall be applied without appropriation to pay such project costs, debt service on bonds or notes issued by the city for such project or such trustee's fees and other related expenses.
SECTION 5. This act shall take effect upon its passage.