Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The provisions of section twenty-two A of chapter forty-four of the General Laws shall apply to any bonds or notes issued by the Blackstone-Millville regional school district pursuant to the vote adopted by its regional district school committee on February fourteenth, nineteen hundred and ninety, if the regional district school committee so determines by a two-thirds vote; provided, however, that the powers granted by said section twenty-two A to the mayor of a city shall be exercised by the chairman of the regional district school committee. Said bonds shall in all other respects be subject to the applicable provisions and limitations of chapters forty-four and seventy-one of the General Laws.
SECTION 2. In order to secure any such bonds or notes, the treasurer of the district, with the approval of the chairman of the regional district school committee, may enter into a trust agreement with a bank or trust company doing business in the commonwealth. Such trust agreement shall be in such form and with such terms as the treasurer and chairman determine to be necessary or appropriate. Any funds deposited and held in trust by the trustee as provided in sections three and four 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 project costs, to pay principal of or interest on the bonds or notes described in section one or to pay trustee's fees and other related expenses.
SECTION 3. Upon certification to the state treasurer by the district secretary that an issue or issues of the bonds or notes described in section one has been issued and a trust agreement entered into in accordance with section two, the state treasurer shall annually pay the proceeds of the school construction grant approved by the state board of education pursuant to chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight for the project for which the bonds or notes were authorized directly to the trustee under said trust agreement and said grant proceeds shall be held in trust and applied by the trustee solely to pay the principal of and interest on the bonds or notes issued by the district.
SECTION 4. At least five days prior to each date on which a payment of principal or interest is due on any bonds or notes described in section one, the district treasurer shall deposit with the trustee the amount necessary to make such payment, after taking account of all other funds held by the trustee that are available for such purpose.
SECTION 5. This act shall take effect upon its passage.