Sec. 13b-76. Bond procedures and provisions. (a) Bonds and bond anticipation
notes issued pursuant to sections 13b-74 to 13b-77, inclusive, are hereby determined to
be issued for valid public purposes in exercise of essential governmental functions. Such
bonds and bond anticipation notes shall be special obligations of the state and shall not
be payable from or charged upon any funds other than the pledged revenues or other
receipts, funds or moneys pledged therefor as provided in sections 3-21a, 3-27a, 3-27f,
12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u,
inclusive, subsection (f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71,
13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection
(a) of section 14-12, sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection (b) of section 14-35, subsection (b) of section 14-41,
section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section
14-66, subsection (e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14
and 16-299, nor shall the state or any political subdivision thereof be subject to any
liability thereon, except to the extent of such pledged revenues or other receipts, funds
or moneys pledged therefor as provided in said sections. As part of the contract of the
state with the owners of said bonds and bond anticipation notes, all amounts necessary
for punctual payment of the debt service requirements with respect to such bonds and
bond anticipation notes shall be deemed to be appropriated, but only from the sources
pledged pursuant to said sections, upon the authorization of issuance of such bonds and
bond anticipation notes by the State Bond Commission, or the filing of a certificate of
determination by the Treasurer in accordance with subsection (c) of this section, and
the Treasurer shall pay such principal and interest as the same shall accrue, but only
from such sources. The issuance of bonds or bond anticipation notes issued under sections 13b-74 to 13b-77, inclusive, shall not directly or indirectly or contingently obligate
the state or any political subdivision thereof to levy or to pledge any form of taxation
whatever therefor, except for taxes included in the pledged revenues, or to make any
additional appropriation for their payment. Such bonds and bond anticipation notes shall
not constitute a charge, lien or encumbrance, legal or equitable, upon any property of
the state or of any political subdivision thereof other than the pledged revenues or other
receipts, funds or moneys pledged therefor as provided in sections 3-21a, 3-27a, 3-27f,
12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u,
inclusive, subsection (f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71,
13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection
(a) of section 14-12, sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection (b) of section 14-35, subsection (b) of section 14-41,
section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section
14-66, subsection (e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383 and 15-14, and the substance of such limitation shall be plainly stated on the face of each such
bond and bond anticipation note. Bonds and bond anticipation notes issued pursuant to
sections 13b-74 to 13b-77, inclusive, shall not be subject to any statutory limitation on
the indebtedness of the state, and, when issued, shall not be included in computing the
aggregate indebtedness of the state in respect to and to the extent of any such limitation.
(b) Bonds issued pursuant to sections 13b-74 to 13b-77, inclusive, may be executed
and delivered at such time or times and shall be dated, bear interest at such rate or rates,
including variable rates to be determined in such manner as set forth in the proceedings
authorizing the issuance of the bonds, provide for payment of interest on such dates,
whether before or at maturity, be issued at, above or below par, mature at such time or
times not exceeding thirty years from their date, have such rank or priority, be payable
in such medium of payment, be issued in such form, including without limitation registered or book-entry form, carry such registration and transfer privileges and be made
subject to purchase or redemption before maturity at such price or prices and under such
terms and conditions, including the condition that such bonds be subject to purchase or
redemption on the demand of the owner thereof, all as may be provided by the State
Bond Commission. The State Bond Commission shall determine the form of the bonds,
the manner of execution of the bonds, the denomination or denominations of the bonds
and the manner of payment of principal and interest. Prior to the preparation of definitive
bonds, the State Bond Commission may, under like restrictions, authorize the issuance
of interim receipts or temporary bonds, exchangeable for definitive bonds when such
bonds have been executed and are available for delivery. If any of the officers whose
signatures appear on the bonds cease to be officers before the delivery of any such bonds,
such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as
if such officers had remained in office until delivery. Nothing herein shall prevent any
series of bonds issued under sections 3-21a, 3-27a, 3-27f, 12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u, inclusive, subsection (f) of
section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive,
and 13b-80, subsection (a) of section 13b-97, subsection (a) of section 14-12, sections
14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection
(b) of section 14-35, subsection (b) of section 14-41, section 14-41a, subsection (a) of
section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section 14-66, subsection (e) of section
14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section
14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14 and 16-299 from being issued in
coupon form, in which case references to the bonds herein also shall refer to the coupons
attached thereto where appropriate, and references to owners of bonds shall include
holders of such bonds where appropriate.
(c) Any bonds issued pursuant to sections 13b-74 to 13b-77, inclusive, may be sold
at public sale on sealed proposals or by negotiation in such manner, at such price or
prices, at such time or times and on such other terms and conditions of such bonds and
the issuance and sale thereof as the State Bond Commission may determine to be in the
best interests of the state, or the State Bond Commission may delegate to the Treasurer
all or any part of the foregoing powers in which event the Treasurer shall exercise such
powers unless the State Bond Commission, by adoption of a resolution prior to the
exercise of such powers by the Treasurer shall elect to reassume the same. Such powers
shall be exercised from time to time in such manner as the Treasurer shall determine to
be in the best interests of the state and he shall file a certificate of determination setting
forth the details thereof with the secretary of the State Bond Commission on or before
the date of delivery of such bonds, the details of which were determined by him in
accordance with such delegation.
(d) The debt service requirements with respect to any bonds and bond anticipation
notes issued pursuant to sections 13b-74 to 13b-77, inclusive, shall be secured by (1) a
first call upon the pledged revenues as they are received by the state and credited to the
Special Transportation Fund established under section 13b-68, and (2) a lien upon any
and all amounts held to the credit of said Special Transportation Fund from time to
time, provided said lien shall not extend to amounts held to the credit of such Special
Transportation Fund which represent (A) amounts borrowed by the Treasurer in anticipation of state revenues pursuant to section 3-16, or (B) transportation-related federal
revenues of the state. Any obligation of the state secured by said lien to pay the unrefunded principal of bond anticipation notes, including for this purpose any obligation
of the state under a reimbursement agreement entered into in connection with a credit
facility providing for payment of the unrefunded principal of bond anticipation notes,
shall be subordinate to any obligation of the state secured by said lien to pay (i) the debt
service requirements with respect to bonds, or (ii) any debt service requirements with
respect to bond anticipation notes other than debt service requirements relating to unrefunded principal of bond anticipation notes or to obligations under a credit facility for
the payment of such unrefunded principal. The debt service requirements with respect
to bonds and bond anticipation notes also may be secured by a pledge of reserves, sinking
funds and any other funds and accounts, including proceeds from investment of any of
the foregoing, established pursuant to sections 3-21a, 3-27a, 3-27f, 12-458 and 12-458d,
subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u, inclusive, subsection
(f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection (a) of section 14-12,
sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28,
subsection (b) of section 14-35, subsection (b) of section 14-41, section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of
section 14-50a, sections 14-52 and 14-58, subsection (c) of section 14-66, subsection
(e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section
14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of
section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14 and 16-299 or the
proceedings authorizing the issuance of such bonds, and by moneys paid under a credit
facility, including, but not limited to, a letter of credit or policy of bond insurance, issued
by a financial institution pursuant to an agreement authorized by such proceedings.
(e) The proceedings under which bonds are authorized to be issued may, subject to
the provisions of the general statutes, contain any or all of the following: (1) Provisions
respecting custody of the proceeds from the sale of the bonds and any bond anticipation
notes, including any requirements that such proceeds be held separate from or not be
commingled with other funds of the state; (2) provisions for the investment and reinvestment of bond proceeds until used to pay transportation costs and for the disposition of any
excess bond proceeds or investment earnings thereon; (3) provisions for the execution of
reimbursement agreements or similar agreements in connection with credit facilities,
including, but not limited to, letters of credit or policies of bond insurance, remarketing
agreements and agreements for the purpose of moderating interest rate fluctuations, and
of such other agreements entered into pursuant to section 3-20a; (4) provisions for the
collection, custody, investment, reinvestment and use of the pledged revenues or other
receipts, funds or moneys pledged therefor as provided in sections 3-21a, 3-27a, 3-27f,
12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u,
inclusive, subsection (f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71,
13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection
(a) of section 14-12, sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection (b) of section 14-35, subsection (b) of section 14-41,
section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section
14-66, subsection (e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14
and 16-299; (5) provisions regarding the establishment and maintenance of reserves,
sinking funds and any other funds and accounts as shall be approved by the State Bond
Commission in such amounts as may be established by the State Bond Commission,
and the regulation and disposition thereof, including requirements that any such funds
and accounts be held separate from or not be commingled with other funds of the state;
(6) covenants for the establishment of pledged revenue coverage requirements for the
bonds and bond anticipation notes, provided that no such covenant shall obligate the
state to provide coverage in any year with respect to any bonds or bond anticipation
notes in excess of four times the aggregate debt service on bonds and bond anticipation
notes, as described in subparagraph (A) of subdivision (3) of section 13b-75, during
such year; (7) covenants for the establishment of maintenance requirements with respect
to state transportation facilities and properties; (8) provisions for the issuance of additional bonds on a parity with bonds theretofore issued, including establishment of coverage requirements with respect thereto as herein provided; (9) provisions regarding the
rights and remedies available in case of a default to the bondowners, noteowners or any
trustee under any contract, loan agreement, document, instrument or trust indenture,
including the right to appoint a trustee to represent their interests upon occurrence of
an event of default, as defined in said proceedings, provided that if any bonds or bond
anticipation notes shall be secured by a trust indenture, the respective owners of such
bonds or notes shall have no authority except as set forth in such trust indenture to
appoint a separate trustee to represent them; and (10) provisions or covenants of like or
different character from the foregoing which are consistent with sections 3-21a, 3-27a,
3-27f, 12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u, inclusive, subsection (f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection
(a) of section 14-12, sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection (b) of section 14-35, subsection (b) of section 14-41,
section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section
14-66, subsection (e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14
and 16-299 and which the State Bond Commission determines in such proceedings are
necessary, convenient or desirable in order to better secure the bonds or bond anticipation
notes, or will tend to make the bonds or bond anticipation notes more marketable, and
which are in the best interests of the state. Any provision which may be included in
proceedings authorizing the issuance of bonds hereunder may be included in an indenture of trust duly approved in accordance with subsection (g) of this section which
secures the bonds and any notes issued in anticipation thereof, and in such case the
provisions of such indenture shall be deemed to be a part of such proceedings as though
they were expressly included therein.
(f) Any pledge made by the state shall be valid and binding from the time when the
pledge is made, and any revenues or other receipts, funds or moneys so pledged and
thereafter received by the state shall be subject immediately 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 state, irrespective of whether such parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is created need be
recorded.
(g) In the discretion of the State Bond Commission, bonds issued pursuant to sections 13b-74 to 13b-77, inclusive, including for this purpose any bond anticipation notes,
may be secured by a trust indenture by and between the state 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 bondowners and noteowners as may be
reasonable and proper and not in violation of law, including covenants setting forth the
duties of the state in relation to the exercise of its powers pursuant to sections 3-21a, 3-27a, 3-27f, 12-458 and 12-458d, subsection (c) of section 13a-80a, sections 13a-175p
to 13a-175u, inclusive, subsection (f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97,
subsection (a) of section 14-12, sections 14-15, 14-16a and 14-21c, subsection (a) of
section 14-25a, section 14-28, subsection (b) of section 14-35, subsection (b) of section
14-41, section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49
and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c)
of section 14-66, subsection (e) of section 14-67, sections 14-67a, 14-67d, 14-67l and
14-69, subsection (e) of section 14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192,
sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383, 15-14 and 16-299 and the custody, safeguarding and application of all moneys.
The state may provide by such trust indenture for the payment of the pledged revenues
or other receipts, funds or moneys to the trustee under such trust indenture or to any
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 transportation costs, as defined in section 13b-75.
(h) The Treasurer shall have power to purchase bonds and bond anticipation notes
of the state issued pursuant to this section out of any funds available therefor. The
Treasurer may hold, pledge, cancel or resell such bonds and bond anticipation notes
subject to and in accordance with agreements with bondowners or noteowners.
(i) Whether or not the bonds and bond anticipation notes issued pursuant to sections
13b-74 to 13b-77, inclusive, are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code, such bonds and bond anticipation notes are hereby made negotiable instruments within the meaning of and for all
purposes of the Uniform Commercial Code, subject only to the provisions of such bonds
and bond anticipation notes for registration.
(j) The proceeds of bonds and bond anticipation notes issued pursuant to sections
13b-74 to 13b-77, inclusive, may be used to pay only transportation costs, provided
the proceeds of bonds and bond anticipation notes whose issuance has been proposed
pursuant to the process set forth in section 13b-57q shall be used to pay only the costs
of projects described in subdivision (6) of subsection (b) of section 13b-74 and related
financing costs, including, without limitation, costs of issuance and funding required
reserves and provided further nothing in this subsection shall limit the issuance of refunding bonds pursuant to subsection (l) of this section.
(k) Any moneys held by the Treasurer or by a trustee pursuant to a trust indenture
with respect to bonds and bond anticipation notes issued pursuant to sections 13b-74 to
13b-77, inclusive, including pledged revenues, other pledged receipts, funds or moneys
and proceeds from the sale of such bonds and bond anticipation notes, may, pending
the use or application of the proceeds thereof for an authorized purpose, be (1) invested
and reinvested in such obligations, securities and investments as are set forth in subsection (f) of section 3-20 and in participation certificates in the Short Term Investment
Fund created under section 3-27a, or (2) deposited or redeposited in such bank or banks
as shall be provided in the resolution authorizing the issuance of such bonds, the certificate of determination authorizing issuance of such bond anticipation notes or in the
indenture securing such bonds or bond anticipation notes. Proceeds from investments
authorized by this subparagraph, less amounts required under the proceedings authorizing the issuance of bonds for the payment of transportation costs relating to such bonds,
shall be credited to the Special Transportation Fund created under section 13b-68.
(l) Any bonds issued under the provisions of sections 13b-74 to 13b-77, inclusive,
and any general obligation bonds of the state issued for transportation purposes, as
defined in subsection (c) of section 13b-69, and at any time outstanding may, at any
time and from time to time, be refunded by the state by the issuance of its refunding
bonds in such amounts as the State Bond Commission may deem necessary, but not to
exceed an amount sufficient to refund the principal of the bonds to be so refunded, to
pay any unpaid interest on such bonds and any premiums and commissions necessary
to be paid in connection with such bonds and to pay costs and expenses which the
Treasurer may deem necessary or advantageous in connection with the authorization,
sale and issuance of refunding bonds. Any such refunding may be effected whether the
bonds to be refunded shall have matured or shall thereafter mature. All refunding bonds
issued under this subsection shall be payable solely from the revenues or other receipts,
funds or moneys out of which the bonds to be refunded thereby are payable and shall
be subject to and may be secured in accordance with the provisions of this section.
(m) Whenever the issuance of bonds has been authorized pursuant to sections 13b-74 to 13b-77, inclusive, the Treasurer may, pending the issuance thereof, and, subject
to any applicable terms or provisions of the proceedings authorizing such issuances,
issue, in the name of the state, bond anticipation notes and any renewals thereof. Notes
evidencing such borrowings shall be designated "Bond Anticipation Notes" and shall
be signed by the Treasurer or his deputy. The principal of and interest on any bond
anticipation notes issued pursuant to this subsection may be repaid from pledged revenues or other pledged receipts, funds or moneys, to the extent not paid from the proceeds
of renewals thereof or of the bonds. Upon the sale of the bonds, the proceeds thereof,
to the extent required, shall be applied forthwith to the payment of the principal of and
interest on any bond anticipation notes or shall be deposited in trust for such purpose.
The date or dates of such bond anticipation notes, the maturities, denominations, form,
details and other particulars of such bond anticipation notes, including the method, terms
and conditions for the issue and sale thereof, shall be determined by the Treasurer in
the best interest of the state, and the Treasurer shall file with the secretary of the State
Bond Commission on or before the date of delivery of such bond anticipation notes a
certificate of determination setting forth the specific details and particulars of each issue
of bond anticipation notes, including renewals thereof.
(n) Whenever the state has a written commitment to receive a grant-in-aid or similar
form of assistance with respect to a project or program for which the issuance of bonds
has been authorized pursuant to sections 13b-74 to 13b-77, inclusive, the Treasurer may
issue notes in anticipation of the issuance of such a grant-in-aid or other assistance,
provided (1) the total amount of such notes shall not exceed the amount of the grant
commitment which has not been paid to the state and (2) all grant payments with respect
to such project or program received by the state, to the extent required, shall be applied
promptly toward repayment of such temporary notes as the same shall become due
and payable, or shall be deposited in trust for such purpose. Notes evidencing such
borrowings shall be designated "Grant Anticipation Notes" and shall be signed by the
manual or facsimile signature of the Treasurer or his deputy. The principal of and interest
on any grant anticipation notes issued pursuant to this subsection may be repaid from
the proceeds of renewals thereof, from grants-in-aid or other assistance pledged for the
payment thereof, or from the proceeds of a credit facility including but not limited to,
a letter of credit or policy of bond insurance. The Treasurer is hereby authorized to
enter into reimbursement agreements or similar agreements with respect to such credit
facilities, and the state's obligation under any such credit facility shall be included among
the debt service requirements for the applicable period. The date or dates of such grant
anticipation notes, the maturities, denomination, form, details and other particulars of
such grant anticipation notes, including the method, terms and conditions for the issue
and sale thereof, shall be determined by the Treasurer in the best interests of the state,
and the Treasurer shall file with the secretary of the State Bond Commission on or before
the date of delivery of such bond anticipation notes a certificate of determination setting
forth the specific details and particulars of each issue of grant anticipation notes, including renewals thereof. This subsection shall not apply if the grant-in-aid or other assistance is to be paid over a period of years to reimburse the state for a portion of principal
due on bonds or bond anticipation notes.
(o) The State Bond Commission may make representations and agreements for the
benefit of the holders of bonds or bond anticipation notes issued pursuant to sections
13b-74 to 13b-77, inclusive, which are necessary or appropriate to ensure the exemption
of interest on such bonds or bond anticipation notes from taxation under the Internal
Revenue Code of 1986, as amended, or any subsequent corresponding internal revenue
code of the United States, including agreements to pay rebates to the federal government
of investment earnings derived from the investment of the proceeds of bonds or bond
anticipation notes, or may delegate to the Treasurer the authority to make such representations and agreements on behalf of the state. Any such agreement may include (1) a
covenant to pay rebates to the federal government of investment earnings derived from
the investment of the proceeds of bonds or bond anticipation notes, (2) a covenant that
the state will not limit or alter its rebate obligations until its obligations to the holders
or owners of such bonds or bond anticipation notes are finally met and discharged, and
(3) provisions to (A) establish trust and other accounts which may be appropriate to
carry out such representations and agreements, (B) retain fiscal agents as depositories
for such funds and accounts and (C) provide that such fiscal agents may act as trustee
of such funds and accounts. Any such agreement entered into prior to May 16, 1988, is
hereby validated. The State Bond Commission may also authorize, by a vote of a majority
of the members of said commission, bonds or bond anticipation notes issued pursuant
to sections 13b-74 to 13b-77, inclusive, in such form and manner that the interest on
such bonds and bond anticipation notes may be includable under the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended, in the gross income of the holders or owners of
such bonds or bond anticipation notes upon the finding by said commission that the
issuance of such taxable bonds or bond anticipation notes is in the public interest.
(P.A. 84-254, S. 6, 22; P.A. 88-166, S. 1, 2; P.A. 93-307, S. 16, 34; June 5 Sp. Sess. P.A. 97-1, S. 19, 20; P.A. 98-124,
S. 7, 12; P.A. 02-70, S. 74; P.A. 03-115, S. 59; 03-278, S. 32; June 30 Sp. Sess. P.A. 03-4, S. 19.)
History: P.A. 88-166 added Subsec. (o) re covenants to ensure tax exemptions; P.A. 93-307 deleted a reference to Sec.
13b-405 which was repealed by the same act, effective June 29, 1993; June 5 Sp. Sess. P.A. 97-1 amended Subsec. (o) to
specify that the State Bond Commission may authorize the issuance of bonds or bond anticipation notes pursuant to Secs.
13b-74 to 13b-77, inclusive, in such form and manner that the interest therein may be included under the Internal Revenue
Code of 1986, effective July 31, 1997; P.A. 98-124 amended Subdiv. (3) of Subsec. (e) to add agreements entered into
pursuant to Sec. 3-20a, effective May 27, 1998; P.A. 02-70 amended Subsecs. (a), (b), (d), (e) and (g) to delete references
to repealed Sec. 14-53 and made a technical change in Subsec. (e), effective July 1, 2002; P.A. 03-115 amended Subsec.
(l) to make technical changes; P.A. 03-278 made technical changes in Subsecs. (a), (b), (d), (e) and (g), effective July 9,
2003; June 30 Sp. Sess. P.A. 03-4 amended Subsec. (j) to limit proceeds of bonds and bond anticipation notes issued
pursuant to Sec. 13b-57q to costs of projects described in Sec. 13b-74(b)(6) and related financing costs, effective August
20, 2003.
Sec. 13b-77. Covenants. (a) The state covenants with the purchasers and all subsequent owners and transferees of bonds and bond anticipation notes issued by the state
pursuant to sections 13b-74 to 13b-77, inclusive, in consideration of the acceptance of
and payment for the bonds and bond anticipation notes, that the principal and interest
of such bonds and bond anticipation notes shall be free at all times from taxation, except
for estate and gift taxes, imposed by the state or by any political subdivision thereof.
The Treasurer is authorized to include this covenant of the state in any agreement with
the owner of any such bonds or bond anticipation notes.
(b) Bonds and bond anticipation notes issued pursuant to sections 13b-74 to 13b-77, inclusive, are hereby made securities in which all public officers and public bodies
of the state and its political subdivisions, all insurance companies, credit unions, building
and loan associations, investment companies, banking associations, trust companies,
executors, administrators, trustees and other fiduciaries and pension, profit-sharing and
retirement funds may properly and legally invest funds, including capital in their control
or belonging to them. Such bonds and bond anticipation notes are hereby made securities
which may properly and legally be deposited with and received by any state or municipal
officer or any agency or political subdivision of the state for any purpose for which the
deposit of bonds and bond anticipation notes or obligations of the state is now or may
hereafter be authorized by law.
(c) The state covenants with the purchasers and all subsequent owners and transferees of bonds and bond anticipation notes issued by the state pursuant to sections 13b-74 to 13b-77, inclusive, in consideration of the acceptance of the payment for the bonds
and bond anticipation notes, until such bonds and bond anticipation notes, together with
the interest thereon, with interest on any unpaid installment of interest and all costs and
expenses in connection with any action or proceeding on behalf of such owners, are
fully met and discharged, or unless expressly permitted or otherwise authorized by the
terms of each contract and agreement made or entered into by or on behalf of the state
with or for the benefit of such owners, that the state will impose, charge, raise, levy,
collect and apply the pledged revenues and other receipts, funds or moneys pledged for
the payment of debt service requirements as provided in sections 13b-74 to 13b-77,
inclusive, in such amounts as may be necessary to pay such debt service requirements
in each year in which bonds or bond anticipation notes are outstanding and further, that
the state (1) will not limit or alter the duties imposed on the Treasurer and other officers
of the state by sections 3-21a, 3-27a, 3-27f, 12-458 and 12-458d, subsection (c) of section
13a-80a, sections 13a-175p to 13a-175u, inclusive, subsection (f) of section 13b-42,
sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection (a) of section 14-12, sections 14-15, 14-16a
and 14-21c, subsection (a) of section 14-25a, section 14-28, subsection (b) of section
14-35, subsection (b) of section 14-41, section 14-41a, subsection (a) of section 14-44,
sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of section 14-50a, sections 14-52 and 14-58, subsection (c) of section 14-66, subsection (e) of section 14-67, sections
14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section 14-73, subsection (c) of
section 14-96q, sections 14-103a and 14-160, subsection (a) of section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section
14-382 and sections 14-383 and 15-14 and by the proceedings authorizing the issuance
of bonds with respect to application of pledged revenues or other receipts, funds or
moneys pledged for the payment of debt service requirements as provided in said sections; (2) will not issue any bonds, notes or other evidences of indebtedness, other than
the bonds and bond anticipation notes, having any rights arising out of said sections or
secured by any pledge of or other lien or charge on the pledged revenues or other receipts,
funds or moneys pledged for the payment of debt service requirements as provided in
said sections; (3) will not create or cause to be created any lien or charge on such pledged
amounts, other than a lien or pledge created thereon pursuant to said sections, provided
nothing in this subsection shall prevent the state from issuing evidences of indebtedness
(A) which are secured by a pledge or lien which is and shall on the face thereof be
expressly subordinate and junior in all respects to every lien and pledge created by or
pursuant to said sections; or (B) for which the full faith and credit of the state is pledged
and which are not expressly secured by any specific lien or charge on such pledged
amounts; or (C) which are secured by a pledge of or lien on moneys or funds derived
on or after such date as every pledge or lien thereon created by or pursuant to said
sections shall be discharged and satisfied; (4) will carry out and perform, or cause to be
carried out and performed, each and every promise, covenant, agreement or contract
made or entered into by the state or on its behalf with the owners of any bonds or bond
anticipation notes; (5) will not in any way impair the rights, exemptions or remedies of
such owners; and (6) will not limit, modify, rescind, repeal or otherwise alter the rights
or obligations of the appropriate officers of the state to impose, maintain, charge or
collect the taxes, fees, charges and other receipts constituting the pledged revenues as
may be necessary to produce sufficient revenues to fulfill the terms of the proceedings
authorizing the issuance of the bonds, including pledged revenue coverage requirements,
and provided nothing herein shall preclude the state from exercising its power, through
a change in law, to limit, modify, rescind, repeal or otherwise alter the character or
amount of such pledged revenues or to substitute like or different sources of taxes, fees,
charges or other receipts as pledged revenues if, for the ensuing fiscal year, as evidenced
by the proposed or adopted budget of the state with respect to the Special Transportation
Fund, the projected revenues meet or exceed the estimated expenses of the Special
Transportation Fund including accumulated deficits, if any, debt service requirements
and any pledged revenue coverage requirement. The State Bond Commission is authorized to include this covenant of the state in any agreement with the owner of any such
bonds or bond anticipation notes.
(P.A. 84-254, S. 7, 62; P.A. 89-331, S. 13, 30; P.A. 93-307, S. 17, 34; P.A. 02-70, S. 75; P.A. 03-278, S. 33.)
History: P.A. 89-331 clarified the exemption from taxation of the principal and interest of the bonds; P.A. 93-307
deleted a reference to Sec. 13b-405 which was repealed by the same act, effective June 29, 1993; P.A. 02-70 amended
Subsec. (c) to substitute reference to Sec. 13b-74 for reference to Sec. 13b-47 and to delete reference to repealed Sec. 14-53, effective July 1, 2002; P.A. 03-278 made a technical change in Subsec. (c), effective July 9, 2003.
Sec. 13b-78. Reserved for future use.
PART III
REPORTS BY COMMISSIONER
Sec. 13b-79. Updating of ten-year plan* for bridge repair and road resurfacing. Annual report to General Assembly. The Commissioner of Transportation shall
update the ten-year plan* for bridge repair and road resurfacing annually and shall submit
a report updating such plan to the joint standing committee of the General Assembly
having cognizance of matters relating to transportation not later than the first business
day of January of each year.
(Oct. Sp. Sess. S.A. 83-1, S. 4, 5; P.A. 86-300, S. 2, 3.)
History: P.A. 86-300 repealed former Subsec. (a) requiring transportation commissioner to report quarterly to transportation committee re expenditure of bond authorizations and transportation fund appropriations and made technical changes.
*Special act 80-79 provides, in part, as follows:
"Section 1. (a) The department of transportation shall evaluate the condition of each state road, highway and bridge,
including, but not limited to, road surface and drainage. Each state road, highway and bridge shall be classified as in poor,
fair, good or excellent condition.
(b) Based upon the evaluation, the department shall plan a ten year road resurfacing and bridge repair schedule and
shall set forth the staff and budgetary requirements necessary to execute the schedule.
Sec. 2. (a) The department shall submit the evaluation to the general assembly no later than January 1, 1981.
(b) The department shall submit the road resurfacing and bridge repair schedule to the general assembly no later than
July 1, 1981."
Sec. 13b-79a. Reports concerning the transportation program authorized
pursuant to special act 84-52 and public act 84-254. Not later than October 1, 1984,
and annually thereafter, the Commissioner of Transportation shall prepare a report on
the current status and progress of the transportation infrastructure program authorized
pursuant to special act 84-52 and sections 3-21a, 3-27a, 3-27f, 12-458 and 12-458d,
subsection (c) of section 13a-80a, sections 13a-175p to 13a-175u, inclusive, subsection
(f) of section 13b-42, sections 13b-59, 13b-61, 13b-69, 13b-71, 13b-74 to 13b-77, inclusive, and 13b-80, subsection (a) of section 13b-97, subsection (a) of section 14-12,
sections 14-15, 14-16a and 14-21c, subsection (a) of section 14-25a, section 14-28,
subsection (b) of section 14-35, subsection (b) of section 14-41, section 14-41a, subsection (a) of section 14-44, sections 14-47, 14-48b, 14-49 and 14-50, subsection (a) of
section 14-50a, sections 14-52 and 14-58, subsection (c) of section 14-66, subsection
(e) of section 14-67, sections 14-67a, 14-67d, 14-67l and 14-69, subsection (e) of section
14-73, subsection (c) of section 14-96q, sections 14-103a and 14-160, subsection (a) of
section 14-164a, subsection (a) of section 14-192, sections 14-319, 14-320 and 14-381, subsection (b) of section 14-382 and sections 14-383 and 15-14. Each report shall
include, but not be limited to: Information on the number of lane miles of state and local
roadway repaved, the status of the state and local bridge programs, the status of intrastate
and interstate highway programs and the interstate trade-in program and mass transportation and aeronautics programs. The commissioner shall notify the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and appropriations and the budgets of state agencies of the availability
of the report. A requesting member of such a committee shall be sent a written copy or
electronic storage media of the report by the commissioner.
(S.A. 84-52, S. 7, 8; P.A. 91-34, S. 1; P.A. 93-307, S. 18, 34; P.A. 96-222, S. 4; P.A. 97-304, S. 5, 31; P.A. 98-222, S.
4; P.A. 02-70, S. 76; P.A. 03-278, S. 34.)
History: P.A. 91-34 required that reports be made semiannually rather than quarterly; P.A. 93-307 deleted a reference
to Sec. 13b-405 which was repealed by the same act, effective June 29, 1993; P.A. 96-222 required that reports be made
annually rather than semiannually; P.A. 97-304 required reports to be on "current" status and progress of the transportation
"infrastructure" program and to include information re status of the state and local bridge programs, deleted Subdiv.
designators and requirement to include in reports number and location of state and local bridges rehabilitated, project costs,
timeliness of completion, any problems developed in implementation, schedule of projects remaining and expected costs,
amount of revenue available from all sources for remaining projects and expected receipts for such projects the succeeding
four quarters, and substituted programs for projects; P.A. 98-222 replaced the requirement that the commissioner prepare
a report with a requirement that the commissioner give notification that a report is available upon request in a written
format or as electronic storage media; P.A. 02-70 deleted reference to repealed Sec. 14-53, effective July 1, 2002; P.A.
03-278 made a technical change, effective July 9, 2003.
Sec. 13b-79b. Reports concerning the Special Transportation Fund. The Commissioner of Transportation shall prepare a report not later than October 1, 1984, and
annually thereafter, with respect to the Special Transportation Fund established under
section 13b-68. Each such report shall, for the preceding twelve-month period, (1) specify the moneys credited to such fund on account of, or derived from, each source of state
and federal revenue, (2) specify the amount of investment earnings from the fund, (3)
specify the moneys from such fund applied and expended for (A) the payment of debt
service requirements, as defined in section 13b-75, (B) the payment of the principal of
and interest on general obligation bonds of the state issued for transportation purposes,
as defined in section 13b-69, and (C) each budgeted account under the annual budget
appropriation made to the Department of Transportation, (4) specify the number of lane
miles of state and local roadway repaved, the status of the state and local bridge programs, the status of intrastate and interstate highway programs and the interstate trade-in program and mass transportation and aeronautics programs and (5) specify the amount
of all expenditures from the Special Transportation Fund for the purchase of highway
related equipment. The commissioner shall notify the joint standing committees of the
General Assembly having cognizance of matters relating to finance, revenue and bonding, transportation and appropriations and the budgets of state agencies of the availability
of the report. A requesting member of such a committee shall be sent a written copy or
electronic storage media of the report by the commissioner.
(June Sp. Sess. P.A. 83-30, S. 7, 8; S.A. 84-40, S. 5; P.A. 91-34, S. 2; P.A. 96-222, S. 5; P.A. 97-304, S. 6; P.A. 98-222, S. 5.)
History: S.A. 84-40 required quarterly reports beginning October 1, 1984, replacing provision which had required an
annual report submitted not later than March first, specified contents of report and made technical changes in designated
committees' titles; P.A. 91-34 changed frequency of reports from quarterly to semiannually; P.A. 96-222 required that
reports be submitted annually rather than semiannually; P.A. 97-304 amended Subdiv. (4) to require reports to specify
"status of the state and local bridge programs", deleted Subpara. designators and deleted requirement to specify in reports
number and location of state and local bridges rehabilitated, project costs, timeliness of completion, any problems developed
in implementation, schedule of projects remaining and expected costs, and substituted "programs" for "projects", and
deleted Subdiv. (6) re reports on the number of new positions for the department and a description of the responsibilities
of each such position; P.A. 98-222 replaced the requirement that the commissioner submit a report with a requirement that
the commissioner give notification that the report is available upon request in a written format or as electronic storage media.