Sec. 7-487. Laws governing city and town development. (a) This chapter shall
not supersede any other general statute, special act, municipal charter or ordinance, with
regard to zoning regulations of the municipality adopted pursuant to section 8-2, or
any special act, inland wetlands regulations adopted pursuant to section 22a-42a, such
environmental regulations, orders, permits or licenses promulgated, issued or adopted
by the Commissioner of Environmental Protection or any municipality pursuant to the
authority granted under titles 22a and 25, local building requirements, the requirements
of any plan of conservation and development for the municipality which has been approved by a municipal planning commission pursuant to section 8-23 or any redevelopment plan or urban renewal plan for the municipality which has been approved by a
redevelopment agency pursuant to section 8-127. In addition the physical improvement,
use and enjoyment of development property shall be subject to all general statutes,
special acts, municipal charters and ordinances and all state or local regulations.
(b) No vote, whether taken prior to or subsequent to August 8, 1975, by the legislative body of a municipality pursuant to section 8-2 to exempt municipal property from
the regulations prescribed by the zoning commission of such municipality shall apply
to development property.
(July Sp. Sess. P.A. 75-2, S. 8, 25; P.A. 95-335, S. 13, 26.)
History: P.A. 95-335 amended Subsec. (a) to change "plan of development" to "plan of conservation and development",
effective July 1, 1995.
Sec. 7-488. Power of municipality to make loans. (a) A municipality shall have
the power to make loans, which for the purposes of this section shall also include commitments to make loans, temporary loans and advances in anticipation of permanent loans,
to any sponsor to provide funds in furtherance of the purposes of this chapter; provided
such loans shall be made only after the municipality finds and determines that similar
loans are not otherwise available to such sponsors, wholly or in part, from private lenders
upon reasonably equivalent terms and conditions.
(b) All loans shall be subject to any rules and regulations of the municipality established by resolution with respect to the making of such loans, and the use of the proceeds
of all loans shall be restricted to only those activities which are in furtherance of the
purposes of this chapter. Loans shall be evidenced by a note or bond, shall be secured
or unsecured, shall be in such amounts, shall bear such date or dates, shall mature at
such time or times, may be subject to prepayment and may contain such other provisions
consistent with the purposes of this chapter as the municipality shall by resolution determine. Each such loan shall be authorized by a separate resolution of the legislative body
of the municipality.
(July Sp. Sess. P.A. 75-2, S. 9, 25.)
Sec. 7-489. Sale, lease, disposition and use of development property. (a) A municipality shall have power to sell, lease or otherwise dispose of all or part of any development property to any governmental unit or sponsor and to make agreements of any
kind with any governmental unit or sponsor for the use or operation thereof, for such
consideration and for such period or periods of time and upon such other terms and
conditions as the municipality may fix and agree upon. In the exercise of such power,
the municipality may make any improved or unimproved development property available for use by a governmental unit or sponsor in accordance with the purposes of this
chapter at its use value, being the value, whether expressed in terms of rental or capital
price, at which the municipality determines such property should be made available in
order that it may be developed or used for the purposes of this chapter.
(b) In order to assure that development property is developed or used in accordance
with the purposes of this chapter, a municipality, upon the sale, lease or other disposition
of such property, shall obligate purchasers, lessees or other users (1) to use such property
for the purposes of this chapter, (2) to begin the building or installation of their improvements on any such property, and to complete the same, within such periods of time as
the municipality may fix as reasonable and (3) to comply with such other conditions as
are necessary or desirable to carry out the purposes of this chapter. Any such obligations
imposed on a purchaser of real property shall be covenants and conditions running with
the land for so long as any bonds issued in connection with such development property
are outstanding.
(July Sp. Sess. P.A. 75-2, S. 10, 25.)
Sec. 7-490. Imposition and collection of facility charges. (a) A municipality shall
have the power to charge and collect facility charges. Such facility charges may be
charged to and collected from any governmental unit or sponsor and such governmental
unit or sponsor shall be liable for and shall pay such facility charges to the municipality
at the time when and place where such charges become due and payable. No governmental unit shall be required to pay any facility charges unless such governmental unit has
agreed to pay such charges. Facility charges payable by a governmental unit subject to
the limitations on indebtedness provided in subsection (b) of section 7-374 shall not be
included in any calculation of debt of such governmental unit subject to such limitation,
and agreements to pay facility charges may be entered into by any governmental unit
notwithstanding any statutory debt limitations, including any limitation on indebtedness
provided in said subsection (b) of section 7-374.
(b) The facility charges fixed, charged and collected by a municipality with respect
to any such development property shall comply with the terms of any lease or other
agreement of the municipality with regard to such development property and, subject
to the provisions of any contract with noteholders or bondholders and any such lease
or other agreement, the facility charges fixed, charged and collected by the municipality
may be increased or decreased by the amount of increase or decrease of the expenses
of the municipality attributable to the development property for which facility charges
are made. Such expenses may include, but not be limited to, operating expenses and
expenses of maintenance, insurance, improvements, replacements, reconstruction and
any other payments, amounts necessary to pay the principal of and interest or redemption
price on any bonds or notes, and amounts necessary to maintain such reserves as may
be required by the terms of any lease or other agreement of the municipality or as may
be deemed necessary or convenient and desirable by the municipality.
(July Sp. Sess. P.A. 75-2, S. 11, 25.)
Sec. 7-491. Issuance of notes and bonds. (a) Subject to the provisions of section 7-492 and any general statute, special act or municipal charter or ordinance to the contrary
notwithstanding, a municipality shall have the power and is hereby authorized to issue
from time to time its notes and bonds in such principal amounts as the municipality
shall determine to be necessary to provide sufficient funds for achieving the purposes
of this chapter, including the making of mortgage loans and loans to sponsors, the acquisition of development property, the establishment of reserves to secure such notes and
bonds, interest on such notes and bonds during construction and for one year thereafter,
and the payment of expenses incident to or necessary for furtherance of the purposes
of this chapter.
(b) A municipality shall have the power, from time to time, to issue (1) notes to
renew notes and (2) bonds to pay notes, including the interest thereon and, whenever it
deems refunding expedient, to refund any bonds by the issuance of new bonds, whether
the bonds to be refunded have or have not matured, and to issue bonds partly to refund
bonds then outstanding for any of the purposes of this chapter. The refunding bonds
may be exchanged for the bonds to be refunded or sold and the proceeds applied to the
purchase, redemption or payment of such bonds.
(c) The notes and bonds shall be authorized by resolution of the municipality, shall
bear such date or dates and shall mature at such time or times not exceeding forty years
from the date thereof in the case of bonds issued to finance housing and facilities related
thereto or thirty years from the date thereof in all other cases, as such resolution may
provide. The bonds may be issued as serial bonds or as term bonds or as a combination
thereof. The notes and bonds shall bear interest at such rate or rates, be in such denominations, be in such form, either bearer or registered, carry such exchange, transfer and
registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption as such resolution may provide. The notes and bonds may be sold by the municipality at public or
private sale, at such price or prices as the municipality shall determine.
(d) Any resolution authorizing notes or bonds or any issue thereof may contain
provisions, which shall be a part of the contract or contracts with the holders thereof,
as to: (1) Pledging all or part of any revenues to secure the payment of the notes or bonds
or of any issue thereof, subject to such agreements with noteholders or bondholders as
may then exist; (2) pledging all or any part of the development property in which the
municipality has acquired an interest from the proceeds of bonds and notes to secure
the payment of the notes or bonds or of any issue of notes or bonds, subject to such
agreements with noteholders or bondholders as may then exist; (3) the use and disposition of the gross income from mortgages owned by the municipality for the purposes
of this chapter and payment of principal of mortgages owned by the municipality for
the purposes of this chapter; (4) the setting aside of reserves or sinking funds and the
regulation and disposition thereof; (5) limitations on the purposes to which the proceeds
of sale of notes or bonds may be applied and pledging such proceeds to secure the
payment of the notes or bonds or of any issue thereof; (6) limitations on the issuance
of additional notes or bonds; the terms upon which additional notes or bonds may be
issued and secured; and the refunding of outstanding or other notes or bonds; (7) the
procedure, if any, by which the terms of any contract with noteholders or bondholders
may be amended or abrogated, the amount of notes or bonds the holders of which must
consent thereto, and the manner in which such consent may be given; (8) limitations on
the amount of moneys to be expended by the municipality for its operating expenses;
(9) vesting in a trustee or trustees property, rights, powers and duties in trust as the
municipality may determine, which may include any or all of the rights, powers and
duties of the trustee appointed by the bondholders pursuant to this chapter, and limiting
or abrogating the right of the bondholders to appoint a trustee under this chapter or
limiting the rights, powers and duties of such trustee; (10) the acts or omissions to act
which shall constitute a default in the obligations and duties of the municipality to the
holders of the notes or bonds and providing for the rights and remedies of the holders
of the notes or bonds in the event of such default, including the right to appointment of
a receiver; provided, however, such rights and remedies shall not be inconsistent with
the general laws of the state and the other provisions of this chapter; (11) any other
matters, of like or different character, which in any way affect the security or protection
of the holders of the notes or bonds.
(e) If the resolution of a municipality authorizing the issuance of bonds or notes so
states, the validity of such bonds or notes may be contested only if an action, suit or
proceeding contesting such validity is commenced within sixty days after the date of
publication of such resolution.
(f) Prior to the issuance of any bonds and notes, a municipality shall find and determine that the intended use of the proceeds of such bonds and notes is in the public
interest and will advance the carrying out of the purposes of this chapter. Such determination shall be based upon a record of proceedings which shall include such matters as
the municipality shall consider relevant to such determination.
(g) Any pledge made by the municipality shall be valid and binding from the time
when the pledge is made, and the revenues or property so pledged and thereafter received
by the municipality shall immediately be subject to the lien of such pledge without any
physical delivery thereof or further act. The lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort, contract or otherwise
against the municipality, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
(h) Neither the officials nor members of the legislative body of the municipality
nor any other authorized person executing such notes or bonds shall be subject to any
personal liability by reason of the issuance thereof.
(i) The municipality, subject to such agreements with noteholders or bondholders
as may then exist, shall have power, out of any funds available therefor, to purchase
notes or bonds of the municipality, which shall thereupon be cancelled, at a price not
exceeding (1) if the notes or bonds are then redeemable, the redemption price then
applicable plus accrued interest to the next interest payment date thereof or (2) if the
notes or bonds are not then redeemable, the redemption price applicable on the first date
after such purchase upon which the notes or bonds become subject to redemption plus
accrued interest to such date.
(j) In the discretion of the municipality, the bonds may be secured by a trust indenture by and between the municipality and a corporate trustee, which may be any trust
company or bank having the powers of a trust company within or without the state. Such
trust indenture may contain such provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not in violation of
law, including covenants setting forth the duties of the municipality in relation to the
exercise of its powers pursuant to this chapter and the custody, safeguarding and application of all moneys. The municipality may provide by such trust indenture for the payment
of the proceeds of the bonds and the revenues to the trustee under such trust indenture
or other depository, and for the method of disbursement thereof, with such safeguards
and restrictions as it may determine. All expenses incurred in carrying out such trust
indenture may be treated as a part of the operating expenses of the municipality. If the
bonds shall be secured by a trust indenture, the bondholders shall have no authority to
appoint a separate trustee to represent them.
(k) Whether or not the notes and bonds are of such form and character as to be
negotiable instruments under the terms of the Uniform Commercial Code, the notes and
bonds are hereby made negotiable instruments within the meaning of and for all purposes
of the Uniform Commercial Code, subject only to the provisions of the notes and bonds
for registration.
(July Sp. Sess. P.A. 75-2, S. 12, 25; P.A. 89-230, S. 1, 4.)
History: P.A. 89-230 amended Subsec. (c) to provide for forty-year maturity limits for bonds which finance housing
and related facilities.
Sec. 7-492. Capital reserve fund established. Petition. Referendum. (a) (1) The
municipality may create and establish a capital reserve fund and shall pay into such
capital reserve fund (A) any moneys appropriated and made available by the state or
municipality for the purpose of such fund, (B) any proceeds of sale of notes or bonds,
to the extent provided in the resolution or resolutions of the municipality authorizing
the issuance thereof and (C) any other moneys which may be made available to the
municipality for the purpose of such fund from any other source or sources. All moneys
held in the capital reserve fund, except as hereinafter provided, shall be used, as required,
solely for the payment of the principal of bonds secured by the capital reserve fund as
the same mature or the annual sinking fund payments, the purchase or redemption of
such bonds, the payment of interest on such bonds or the payment of any redemption
premium required to be paid when such bonds are redeemed prior to maturity; provided
moneys in such fund shall not be withdrawn therefrom at any time in such amount as
would reduce the amount of such fund to less than the maximum capital reserve fund
requirement, except for the purposes of paying interest on such bonds, principal of such
bonds and annual sinking fund payments, as the same become due and for the payment
of which other moneys of the municipality are not available. Any income or interest
earned by, or increment to, the capital reserve fund due to the investment thereof or any
amount in excess of the maximum capital reserve fund requirement may be transferred
by the municipality to other funds or accounts of the municipality established pursuant
to this chapter to the extent it does not reduce the amount of the capital reserve fund
below the maximum capital reserve fund requirement.
(2) A municipality shall not issue bonds secured by the capital reserve fund at any
time if upon issuance the amount in the capital reserve fund will be less than the maximum capital reserve fund requirement, unless the municipality, at the time of issuance
of such bonds, shall deposit in such fund from the proceeds of the bonds so to be issued,
or otherwise, an amount which, together with the amount then in such fund, will not be
less than the maximum capital reserve fund requirement.
(3) In computing the amount of the capital reserve fund for the purposes of this
section, securities held as a part thereof shall be valued in the manner provided in the
resolution or resolutions authorizing the issuance of bonds secured by the capital reserve fund.
(4) In order to further secure bonds and notes secured by a capital reserve fund and
to assure order in its budgeting process, a municipality may, if deemed necessary or
appropriate in furtherance of the purposes of this chapter, include in the resolution authorizing the issuance of such bonds and notes provision for the municipality to covenant
and agree with the holders of such bonds and notes that on or before the first day in
April in each year the amount necessary to restore the capital reserve fund to the maximum capital reserve fund requirement, as such amount shall be certified by the treasurer
or other officer acting as the chief financial officer of the municipality on or before
the first day of December next preceding, shall be paid from the general fund of the
municipality and shall constitute a legal pledge, charge and lien upon its income and
receipts, and next upon its real property, any general statute, special act or municipal
charter or ordinance to the contrary notwithstanding. Such covenant and agreement shall
constitute a pledge of the credit and taxing power of the municipality and the holders
of bonds and notes so secured shall have the specific right to compel the exercise of the
taxing power of the municipality. Any provision of this subdivision to the contrary
notwithstanding, any such deficiency in the capital reserve fund so certified by the
treasurer or other such financial officer of the municipality shall be satisfied first from
the revenues of the development property specifically pledged to the payment of bonds
or notes secured by such capital reserve fund, and no holder of any such bond or note
may bring any action, suit or proceeding, in law or equity, nor compel by mandamus
or injunction the exercise of the taxing power of the municipality, or forfeiture of its
property, unless and until all remedies with respect to such pledged revenues have been
exhausted. The substance and extent of such covenant and agreement shall be plainly
stated on the face of each note and bond to which it is applicable. All amounts paid over
from the general fund of the municipality as provided in this subdivision shall, subject
to the rights of the holders of any notes or bonds of the municipality theretofore or
thereafter issued, be repaid to the general fund from (A) moneys in a capital reserve
fund in excess of the maximum capital reserve fund requirement, (B) any revenues not
required for any other of the purposes of this chapter and (C) proceeds from the sale or
other disposition of the development property acquired from the proceeds of bonds and
notes secured by such capital reserve fund. Within fourteen days after the adoption of
a resolution pursuant to this subdivision, the resolution or a summary of such resolution
shall be published in a newspaper having a general circulation within the municipality
in which such resolution was adopted. If, within thirty days of such publication, five
per cent of the electors of such municipality, who are registered as electors on the last
completed, revised registry list of such municipality, file with the clerk of such municipality a petition requesting a referendum with respect to such resolution, the question
of approval of such resolution shall be submitted to the electors of such municipality at
a special election called for such purpose to be held not less than thirty days, nor more
than sixty days, after the filing of such petition, in conformity with the provisions of
section 9-369, or if a regular municipal election is to be held more than sixty days, but
not more than one hundred twenty days, after the filing of such petition, such question
shall be so submitted at such regular election and a vote thereon shall be taken in the
manner prescribed by said section 9-369. If a majority of those voting in any such
referendum shall vote to approve such resolution, such resolution shall thereupon become effective. If less than a majority of those voting in any such referendum vote to
approve such resolution, such resolution shall be null and void. If no such petition is
filed within thirty days after the publication of the newspaper notice of adoption of any
such resolution, the municipal clerk shall verify that fact to the legislative body of the
municipality and such resolution shall thereupon become effective.
(5) Notwithstanding any other provisions contained in this chapter, the aggregate
amount of bonds secured by such capital reserve funds authorized to be created and
established by this section and by such covenant and agreement of the municipality as
set forth in this section shall be included in the debt of the municipality as defined in
subdivision (1) of subsection (b) of section 7-374, and shall be subject to the limitations
on such debt and on total debt set forth in said subsection (b) of section 7-374, and the
aggregate amount of such bonds shall not exceed five per centum of the grand list, as
defined in section 7-374, and the proceeds of such bonds shall not be used for residential
housing development property, except where such residential housing development
property is a part of an undertaking designed to accomplish or further one or more
purposes of this chapter in addition to the purpose of residential housing. No bonds shall
be secured by a capital reserve fund unless the municipality by resolution or resolutions
finds and determines that revenues derived from development property financed from
the proceeds of such bonds shall be sufficient (A) to pay the applicable principal of and
interest on such bonds, (B) to establish, maintain and increase any reserves deemed by
the municipality to be advisable to secure the payment of the principal of and interest
on such bonds, (C) unless the contract with the governmental unit or sponsor obligates
the governmental unit or sponsor to pay for the maintenance and insurance of such
property, to pay the cost of maintaining such property in good repair and keeping it
properly insured and (D) to pay such other costs of such property as may be required,
and further, in the case of sponsors, that such sponsor is found by the municipality to
be financially responsible and presumptively able to comply with the terms and conditions of any lease, conditional sale or credit agreement or loan agreement, agreement
of sale, mortgage or other agreement as made by it with the municipality with respect
to such property.
(b) The municipality may create and establish such other fund or funds, including
other capital reserve funds with the same force and effect and upon the same terms and
conditions and subject to the same limitations as provided in subsection (a) of this section, as may be necessary or desirable in furtherance of the purposes of this chapter.
(July Sp. Sess. P.A. 75-2, S. 13, 25.)
Sec. 7-493. Bonds and notes to be special obligation of municipality. Applicability of statutory debt limitation. Bonds and notes issued pursuant to this chapter
shall be special obligations of the municipality and shall not be payable from nor charged
upon any funds other than the revenues pledged to the payment thereof, nor shall the
municipality issuing the same be subject to any liability thereon except to the extent of
such pledged revenues. No holder or holders of any bonds or notes shall have the right
to compel any exercise of the taxing power of the municipality to pay any bonds or
notes or the interest thereon, nor to enforce payment thereon against any property of
the municipality except the development property mortgaged or otherwise encumbered
under the provisions and for the purposes of this chapter. The bonds and notes shall not
constitute a charge, lien or encumbrance, legal or equitable, upon any property of the
municipality, except the development property mortgaged or otherwise encumbered
under the provisions and for the purposes of this chapter. The substance of such limitation
shall be plainly stated on the face of each bond and note, with appropriate modification
in the case of bonds and notes secured by the covenant and pledge of a municipality to
restore the capital reserve fund to the maximum capital reserve fund requirement. The
foregoing provisions of this section shall be subject to the provisions of section 7-492
when applicable, including particularly the provisions of said section with respect to
notes and bonds secured by such covenant and pledge of a municipality, and all bonds
and notes so secured shall be disclosed and listed in all reports made or required in
connection with any indebtedness of the municipality which is subject to any statutory
limitation. Except as otherwise provided in subdivision (5) of subsection (a) of section
7-492, bonds and notes issued pursuant to this chapter shall not be subject to any statutory
limitation on the indebtedness of the municipality and such bonds and notes when issued
shall not be included in computing the aggregate indebtedness of the municipality in
respect to and to the extent of any such limitation.
(July Sp. Sess. P.A. 75-2, S. 14, 25.)
Sec. 7-494. Municipal moneys to be deposited in separate accounts. Annual
audits. (a) All moneys of a municipality derived in furtherance of the purposes of this
chapter, except as otherwise authorized or provided in this chapter, shall be deposited
as soon as practicable in a separate account or accounts in banks or trust companies
organized under the laws of the state or in national banking associations doing business
in the state. The moneys in such accounts shall be paid out on checks signed by such
officer or employee of the municipality as the municipality shall authorize. All deposits
of such moneys shall, if required by the municipality, be secured by obligations of the
United States of America or of the state or of the municipality of a market value equal
at all times to the amount of the deposit and all banks and trust companies are authorized
to give such security for such deposits. Notwithstanding the provisions of this section,
a municipality shall have power to contract with the holders of any of its notes or bonds
as to the custody, collection, securing, investment and payment of any moneys of the
municipality derived in furtherance of the purposes of this chapter and of any moneys
held in a trust or otherwise for the payment of notes or bonds, and to carry out such
contract. Moneys held in trust or otherwise for the payment of notes or bonds or in any
way to secure notes or bonds and deposits of such moneys may be secured in the same
manner as moneys of the municipality, and all banks and trust companies are authorized
to give such security for such deposits.
(b) Subject to the provisions of any contract with noteholders and bondholders, a
municipality issuing notes or bonds pursuant to this chapter shall prescribe a system of
accounts. All such accounts shall be kept separate from other accounts of the municipality and shall be used for the purposes of this chapter and for no other purpose.
(c) All accounts of a municipality established in furtherance of the purposes of this
chapter shall be annually audited by an independent certified public accountant, and a
report of such audit and the books and records of the municipality kept with respect to
any action taken or account established under this chapter, including books and records
pertaining to its receipts, disbursements, contracts, reserve funds, sinking funds and
investments, shall be open to public inspection.
(July Sp. Sess. P.A. 75-2, S. 15, 25.)
Sec. 7-495. Municipal default or noncompliance. Appointment of trustee. (a)
In the event that a municipality shall default in the payment of principal of or interest
on any issue of notes or bonds after the same shall become due, whether at maturity or
upon call for redemption, and such default shall continue for a period of thirty days, or
in the event that a municipality shall fail or refuse to comply with the provisions of this
chapter, or shall default in any agreement made with the holders of any issue of notes
or bonds, the holders of twenty-five per cent in aggregate principal amount of the notes
or bonds of such issue then outstanding, by instrument or instruments filed in the office
of the clerk of such municipality and proved or acknowledged in the same manner as a
deed to be recorded, may appoint a trustee to represent the holders of such notes or
bonds for the purposes herein provided.
(b) Such trustee may, and upon written request of the holders of twenty-five per
cent in principal amount of such notes or bonds then outstanding shall, in his or its own
name: (1) By suit, action or proceeding in accordance with the general statutes enforce all
rights of the noteholders or bondholders, including the right to require the municipality to
carry out any agreement with such holders and to perform its duties under this chapter;
(2) bring suit upon such notes or bonds; (3) by action or suit, require the municipality
to account as if it were the trustee of an express trust for the holders of such notes or
bonds; (4) by action or suit, enjoin any acts or things which may be unlawful or in
violation of the rights of the holders of such notes or bonds; (5) declare all such notes
or bonds due and payable, and if all defaults shall be made good, then, with the consent
of the holders of twenty-five per cent of the principal amount of such notes or bonds
then outstanding, annul such declaration and its consequences.
(c) The Superior Court shall have jurisdiction of any suit, action or proceeding by
the trustee on behalf of such noteholders or bondholders. The venue of any such suit,
action or proceeding shall be laid in the municipality against which any such remedy
is sought.
(d) Before declaring the principal of notes or bonds due and payable, the trustee
shall first give thirty days' notice in writing to the municipality.
(July Sp. Sess. P.A. 75-2, S. 16, 25.)
Sec. 7-496. Notes and bonds made securities. The notes and bonds of municipalities are hereby made securities in which all public officers and bodies of this state and
all municipalities and municipal subdivisions, all insurance companies and associations
and other persons carrying on an insurance business, all banks, bankers, trust companies,
savings banks and savings associations, including savings and loan associations, investment companies and other persons carrying on a banking business, all administrators,
guardians, executors, trustees and other fiduciaries, and all other persons whatsoever
who are now or may hereafter be authorized to invest in bonds or in other obligations
of the state, may properly and legally invest funds, including capital, in their control or
belonging to them. The notes and bonds are also hereby made securities which may be
deposited with and may be received by all public officers and bodies of the state and
all municipalities for any purpose of which the deposit of bonds or other obligations of
the state is now or may hereafter be authorized.
(July Sp. Sess. P.A. 75-2, S. 17, 25; P.A. 80-483, S. 22, 186.)
History: P.A. 80-483 deleted reference to building and loan associations.
Sec. 7-497. Income from notes and bonds tax-exempt; exception. It is hereby
determined that the powers conferred upon municipalities by this chapter are in all
respects for the benefit of the people of the state and for the improvement of their health,
safety, welfare, comfort and security, and that the purposes of this chapter are public
purposes and that municipalities will be performing an essential governmental function
in the exercise of the powers conferred upon them by this chapter. The state covenants
with the purchasers and all subsequent holders and transferees of notes and bonds issued
by a municipality, in consideration of the acceptance of and payment for the notes and
bonds, that the notes and bonds of the municipality issued pursuant to this chapter and
the income therefrom shall at all times be free from taxation, except for estate and gift
taxes and taxes on transfers. Municipalities are authorized to include this covenant of
the state in any agreement with the holder of such notes or bonds.
(July Sp. Sess. P.A. 75-2, S. 18, 25.)
Sec. 7-498. Development property may be tax-exempt. Any development property may be exempted from any property tax imposed by the municipality; provided
any municipality may enter into an agreement, approved by resolution, providing for a
payment or payments in lieu of taxes with respect to any such property, or providing
that any such property is subject to all or any portion of local property taxes. In no case
shall development property be exempt in whole or in part from such property tax for a
period or periods, in the aggregate, in excess of twenty years. This section shall not
affect, modify, alter or invalidate any agreement entered into by any municipality prior
to August 8, 1975, relating to local property taxes to be paid on any municipally owned
property.
(July Sp. Sess. P.A. 75-2, S. 19, 25; P.A. 84-428, S. 3, 4.)
History: P.A. 84-428 amended the description of development property, which may be exempt from property tax, by
deleting the condition that such property must be owned by a municipality to be so exempted.
Sec. 7-499. Agreement with bond holders. The state does hereby pledge to and
agree with the holders of any notes or bonds that the state will not limit or alter the rights
hereby vested in a municipality to fulfill the terms of any agreements made with said
holders thereof, or in any way impair the rights and remedies of such holders until
such notes and bonds, together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with any action or
proceeding by or on behalf of such holders, are fully met and discharged. A municipality
is authorized to include this pledge and agreement of the state in any agreement with
the holders of such notes or bonds.
(July Sp. Sess. P.A. 75-2, S. 20, 25.)
Sec. 7-500. Exclusive procedure for issuance of bonds. Notwithstanding the provisions of any other general statute, special act, municipal charter or ordinance to the
contrary, no proceedings, notice or approval shall be required for the issuance of any
bonds or notes or any instrument as security therefor, except as provided by sections 7-491 to 7-499, inclusive.
(July Sp. Sess. P.A. 75-2, S. 21, 25.)
Sec. 7-501. Competitive or public bidding requirements. This chapter shall not
supersede any provision of any general statute, special act, municipal charter or ordinance with regard to competitive or public bidding for the sale, lease or other disposition
of property or for the award of contracts for demolition, construction or rehabilitation,
except that any contract or agreement for the disposition of any interest by a municipality,
or a governmental unit or nonprofit corporation to which a municipality has delegated
powers under the provisions of section 7-486, in development property and any contract
or agreement relative to the improvement of development property, the construction of
improvements thereon or the rehabilitation thereof, which is entered into by a municipality, or a governmental unit or nonprofit corporation to which a municipality has delegated powers under the provisions of section 7-486, with a sponsor who is going to use
or occupy such development property, may be entered into without regard to any such
requirement.
(July Sp. Sess. P.A. 75-2, S. 22, 25.)
Sec. 7-502. Applicability of payment bond, prevailing wage and other employee benefit laws. (a) The provisions of section 31-53 shall apply to contractual
arrangements for the construction, reconstruction or rehabilitation of development
property.
(b) The provisions of sections 49-41 to 49-43, inclusive, shall apply to any construction, reconstruction or rehabilitation of development property undertaken by a municipality or a governmental unit or nonprofit corporation to which a municipality has delegated powers pursuant to section 7-486.
(c) The provisions of sections 7-467 to 7-473c, inclusive, 7-474 to 7-477, inclusive,
and of chapter 561 and any provisions of any special act, municipal charter or ordinance
granting to employees rights of organization, representation and collective bargaining
shall apply to any powers exercised or actions undertaken pursuant to this chapter by a
municipality or a governmental unit or nonprofit corporation to which a municipality
has delegated powers pursuant to section 7-486.
(July Sp. Sess. P.A. 75-2, S. 23, 25.)