The bill permits the City of Providence to issue bonds up to $400 million for school construction and renovation, with various bond types allowed, including serial, term, and zero coupon bonds. The principal of these bonds must be due between five and thirty years from the date of issuance, and only the original principal amount will count towards any debt limits. The city council will have the authority to manage the sale, denominations, maturities, and interest rates of the bonds, and the city may enter into agreements with state financial institutions. Proceeds from the bond sales are designated for school-related costs, and temporary notes may be issued in anticipation of the bonds or federal/state aid.
The bill also provides guidelines for the management of proceeds from refunding notes and bonds, including the creation of a separate fund for repayment if necessary. It details the permissible uses of bond or note proceeds, exempts the obligations from certain debt limitations, and requires the city to annually appropriate funds for principal and interest payments. The bill ensures the validity of bonds or notes despite changes in city officers and authorizes the city to apply for and expend federal or state assistance. It concludes with provisions for extinguishing unissued bond and note authority and for submitting a bond issuance question to city electors for approval. The act will take effect after approval by city electors, with sections 15 and 16 effective immediately upon passage. There are no specific insertions or deletions from current law indicated in the provided text.