Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The city known as the town of Methuen is hereby authorized to enter into a contract, guaranty or other credit support document pursuant to which said town shall pledge its full faith and credit to assure the timely payment by the Nevins Memorial, a corporation established pursuant to chapter forty-seven of the acts of eighteen hundred and eighty-five to provide a public library for the citizens of said town, of the principal and premium, if any, of and interest on, and its timely payment and punctual performance of all liabilities and obligations relating to, a loan from the Massachusetts Industrial Finance Agency made pursuant to chapter twenty-three A of the General Laws, and of revenue bonds to be issued by said agency pursuant to said chapter twenty-three A to provide said loan or an alternative source of funds. Said loan to be made and said revenue bonds or source of funds to be issued to provide for the acquisition, construction, improvement and equipping of a project in said town consisting generally of the expansion and renovation of the library facilities owned, maintained and operated by the Nevins Memorial and related working capital.
SECTION 2. The terms, including but not limited to, principal amount, interest rate or rates, maturity date, debt service, which need not be level payment, redemption provisions and prices, and manner and terms of sale of said bonds and said loan shall be as determined by the Massachusetts Industrial Finance Agency as authorized by and in accordance with chapter twenty-three A of the General Laws or by the alternative source of funds and, solely for purposes of said contract, guaranty or other credit support document, with the approval of the mayor of the city known as the town of Methuen.
SECTION 3. For the purposes authorized in section one and subject to section two, the mayor of the city known as the town of Methuen is hereby authorized on behalf of said town, to approve the form of and terms and conditions contained in said contract, guaranty or other credit support document, to effect the pledge or assignment of said contract, guaranty or other credit support document to secure said bonds or alternative source of funds, his execution thereof conclusively to identify the same as having been so approved.
SECTION 4. The obligations of the city known as the town of Methuen under any contract, guaranty or other credit support document entered into pursuant to this act shall constitute a pledge of the full faith and credit of said town as though said contract, guaranty or other credit support document were indebtedness incurred in accordance with the provisions of chapter forty-four of the General Laws, but such obligations shall not be taken into account in determining the outstanding indebtedness of said town for purposes of section ten of said chapter forty-four or any other provision of general or special law imposing a limitation on the amount of indebtedness which may be incurred by said town.
SECTION 5. This act shall take effect upon its passage.