Borrowing in anticipation of bonds; temporary notes; issuance by city or town
Section 12. In anticipation of the authorization or issue of bonds under this chapter, and subject to the approval of the department under this chapter, a city or town subject to this chapter, acting by its municipal light board, when authorized by a two-thirds vote as defined in section one of chapter forty-four, may issue temporary notes. Subject to the terms of the department’s approval and of the authorizing vote, the board may provide for the sale of the notes at public or private sale and may determine the interest rate or rates, maturity or maturities, redemption privileges, if any, form, denomination or denominations and place or places of payment or provide for the determination thereof by an officer or officers of the board or of the city or town. Temporary notes issued hereunder shall be executed in the manner provided herein for bonds and shall be payable within six years from their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes under this chapter, provided the period from the date of issue of an original note to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed six years. Unless otherwise provided in the authorizing vote or in the approval of the department, the board may cause notes to be refunded to the extent provided in this chapter. To the extent of any borrowing in anticipation of bonds, the maximum maturity of an equivalent amount of the bonds shall be measured from the date of the anticipatory borrowing.