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The 190th General Court of the Commonwealth of Massachusetts

Section 35: General obligation serial bonds or notes; temporary notes; indebtedness

Section 35. The district by vote of the commissioners is authorized to issue, from time to time, general obligation serial bonds or notes of the district to pay for its share of the costs of capital outlay required in connection with the project or projects contained in an approved plan, in such amount or amounts as the district commissioners may determine and as may be approved by the division, and may refund any such serial bonds or notes. Such serial bonds or notes may be callable with or without premium, shall contain such terms and conditions, bear such rate or rates of interest, be sold in such manner, at public or private sale, and mature at such times and in such amounts as the commissioners shall determine; provided, however, that each issue of such bonds or notes shall be payable in annual installments, the first of which shall be payable not later than three years after its date and the last of which shall be payable not later than thirty years from said date.

If the district votes to issue serial bonds or notes, the commissioners may authorize the issuance, in the name of the district, of general obligation temporary notes for a period of not more than two years in anticipation of the money to be received from the sale of such serial bonds or notes; but the time within which such serial notes or bonds shall become payable shall not be extended by reason of the making of such temporary loans beyond the time fixed in the vote authorizing such serial bonds or notes.

The district by vote of the commissioners is authorized to issue, from time to time, general obligation temporary notes of the district in anticipation of assessments and other revenues of the district of the year in which such notes are issued. Temporary notes in anticipation of assessments or other revenues shall be payable not more than one year from their dates. If at any time any principal or interest is due or about to become due on any bond or note issued by a district and funds to pay the same are not available, the district may temporarily borrow money and issue temporary general obligation notes of the district, payable not more than one year from their dates, to pay such principal and interest.

Temporary notes issued under this section for a shorter period than the maximum permitted may be renewed by the issuance of other temporary notes maturing within the required period; provided, that the period from the date of issue of the original temporary note to the date of maturity of the renewal note shall not exceed the maximum period for which the original temporary note may have been issued. Such temporary notes or renewal notes may be sold at discount or with interest payable at or at and before maturity.

Notes or bonds authorized by this section shall be signed by the treasurer and countersigned by the executive director of the district and serial notes and bonds shall have the district seal affixed. Sections sixteen B and sixteen C of chapter forty-four shall be applicable to such bonds and notes.

Indebtedness incurred under this section shall not be included in computing the limit of indebtedness of any city or town any portion of which is included in a district.