HB304 (2005) Detail

Relative to federal highway grant anticipation bonds.


CHAPTER 58

HB 304-FN-A – FINAL VERSION

13Apr2005… 0994h

2005 SESSION

05-0390

06/09

HOUSE BILL 304-FN-A

AN ACT relative to federal highway grant anticipation bonds.

SPONSORS: Rep. Rausch, Rock 5; Rep. Dowd, Rock 5; Rep. Dowling, Rock 5; Rep. Graham, Hills 18; Rep. Waterhouse, Rock 4; Sen. Morse, Dist 22; Sen. Letourneau, Dist 19; Sen. Clegg, Dist 14

COMMITTEE: Public Works and Highways

ANALYSIS

This bill allows the state to issue bonds for the purpose of financing project costs related to the widening of Interstate 93 from Manchester to the Massachusetts border and for any other federally aided highway project the legislature may authorize to be funded with this type of bond. The bonds will be secured with the federal aid for highways received by the state.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

13Apr2005… 0994h

05-0390

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to federal highway grant anticipation bonds.

Be it Enacted by the Senate and House of Representatives in General Court convened:

58:1 New Chapter; Federal Highway Grant Anticipation Bonds. Amend RSA by inserting after chapter 228 the following new chapter:

CHAPTER 228-A

FEDERAL HIGHWAY GRANT ANTICIPATION BONDS

228-A:1 Title; Definitions. This chapter may be referred to as the “Federal Highway Anticipation Bond Act.” For purposes of this chapter, unless a different meaning clearly appears from the context, the following words shall have the following meanings:

I. “Bonds” means any bonds, notes, or other evidences of indebtedness issued under this chapter.

II. “Federal highway construction program” means the state’s federally assisted highway program, as it may be provided for from time to time, including without limitation, projects financed by the issuance of bonds under this chapter or any other federal highway project previously undertaken or to be undertaken at any time hereafter while any such bonds are outstanding as part of such program.

III. “Federal highway construction trust funds” means all federal highway construction reimbursements and any other federal highway assistance received from time to time by the state with respect to the federal highway construction program, or received from time to time by the state under any successor program established under federal law.

IV. “Project costs” means all the costs of constructing, reconstructing, altering, or dismantling any highway eligible to receive federal funds in accordance with RSA 235:7 or any other applicable federal or state law, and, without limiting the generality of the foregoing, may include the costs of planning, designing, constructing, reconstructing, altering, dismantling, and landscaping any such highway and all approaches, bridges, and roads connecting thereto or connecting parts thereof, of all lands, property rights, rights-of-way, easements, and franchises necessary or convenient for such construction, of all machinery and equipment, and of traffic estimates, administration, engineering, architectural and legal services, labor, plans, specifications, surveys, and estimates of costs and revenues, financing charges, interest prior to or during construction, and all such other expenses as may be necessary or incident to the financing and construction of such highway and the placing of the same fully in operation, and may include the funding of reserves for debt service and other expenses as may be determined in a bond resolution or trust or security agreement adopted or entered into pursuant to this chapter.

V. “Revenues” means all federal aid for highways received by the state pursuant to Title 23 of the United States Code and all other federal laws, heretofore or hereafter enacted, relating to federal aid for highways and all rights to receive the same, and any grants, loans, and other contributions from any governmental unit relating thereto or to projects financed, in whole or in part, pursuant to this chapter, investment earnings, and the proceeds of any borrowing hereunder or of any sale or disposition or insurance of any highway assets of the state.

228-A:2 Issuance of Revenue Bonds. The state may issue bonds under this chapter to be known as “federal highway grant anticipation bonds.” The bonds may be issued from time to time for the purpose of financing project costs related to the widening of Interstate 93 from Manchester to the Massachusetts border and any other federally aided highway project hereafter authorized by the general court to be financed under this chapter. Bonds issued hereunder shall be special obligations of the state and the principal of, premium, if any, and interest on all bonds shall be payable solely from the particular funds provided therefor under this chapter. The bonds shall be issued by the treasurer in such amounts as the governor and council shall determine, not exceeding in the aggregate $195,000,000. Bonds of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time as determined by such index, banker’s loan rate, or other method as may be determined by the treasurer, and shall mature at such time or times as may be determined by the treasurer, except that no bond shall mature more than 15 years from the date of its issue. Bonds may be made redeemable before maturity either at the option of the state or at the option of the holder, or on the occurrence of specified events, at such price or prices and under such terms and conditions as may be fixed by the treasurer prior to the issue of bonds. The treasurer shall determine the form and details of bonds. Subject to RSA 93-A, the bonds shall be signed by the treasurer and countersigned by the governor. The bonds may be sold in such manner, either at public or private sale, for such price, including above or below par value, at such rate or rates of interest, or at such discount in lieu of interest, as the treasurer may determine.

228-A:3 Trust or Security Agreement or Resolution.

I. Any bonds issued under this chapter may be secured by a resolution or by a trust or security agreement between the state and a corporate trustee or by a trust or security agreement directly between the state and the purchasers of the bonds. Any corporate trustee that is a party to such resolution or trust or security agreement may be any trust company or bank having the powers of a trust company within or without the state. Any such resolution or trust or security agreement shall be in such form and executed in such manner as may be determined by the treasurer, with the approval of the governor and council. Such trust or security agreement or resolution may pledge or assign, in whole or in part, the revenues, as defined in RSA 228-A:1, held or to be received by the state and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the state, and any proceeds thereof. Such trust or security agreement or resolution may contain such provisions for protecting and enforcing the rights, security, and remedies of the bondholders as may, in the discretion of the treasurer, be reasonable and proper and not in violation of law. Without limiting the generality of the foregoing, such agreement or resolution may include:

(a) Provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities, and

(b) Covenants setting forth the duties of, and limitations on, the state in relation to:

(1) The custody, safeguarding, investment and application of moneys;

(2) The issue of additional or refunding bonds;

(3) The use of any surplus bond proceeds;

(4) The establishment of reserves;

(5) The construction and operation of any highway or project related thereto;

(6) Any contracts relating thereto; and

(7) Subsequent amendments of such provisions and contracts.

II. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues, or other moneys under a trust or security agreement or resolution. It shall be lawful for any bank or trust company to furnish such indemnification or to pledge such securities and issue such letters or lines of credit or other credit facilities as may be required by the state acting under this chapter. Any such trust or security agreement or resolution may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders.

228-A:4 Credit Facilities and Insurance. Any bonds issued under authority of this chapter may be issued pursuant to lines of credit or other banking arrangements under such terms and conditions not inconsistent with this chapter, and under such agreements with the purchasers or makers thereof, as the treasurer may determine to be in the best interests of the state. In addition to other security provided herein or otherwise by law, bonds issued by the state under this chapter may be secured, in whole or in part, by insurance or by letters or lines of credit or other credit facilities issued to the state by any bank, trust company, or other financial institution, within or without the state, and the state may pledge or assign any of the revenues as security for the reimbursement by the state to the issuers of such letters or lines of credit, insurance, or credit facilities of any payments made thereunder.

228-A:5 Pledge of Revenues or Other Property. Any pledge of revenues or other property made by the state under this chapter shall be valid and binding and shall be deemed continuously perfected for the purposes of RSA 382-A and other laws from the time when the pledge is made; the revenues, moneys, rights, and proceeds so pledged and then held or thereafter acquired or received by the state shall immediately be subject to the lien of such pledge without any physical delivery or segregation thereof or further act; and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the state, irrespective of whether such parties have notice thereof. No such revenues may be used in a manner inconsistent with the pledge. Neither the resolution, any trust or security agreement, nor any other agreement by which a pledge is created need be filed or recorded except in the records of the secretary of state and no filing need be made under RSA 382-A.

228-A:6 Enforcement of Rights. Any owner of a bond issued under the provisions of this chapter and any trustee under a trust or security agreement or resolution securing the same, except to the extent the rights given in this section may be restricted by such agreement or resolution, may bring suit upon the bonds and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and enforce any and all rights under the laws of the state or granted hereunder, or under such trust or security agreement or resolution, and may enforce and compel the performance of all duties required by this chapter or by such agreement or resolution, to be performed by the state or by any officer thereof.

228-A:7 Refunding Bonds. The treasurer, when authorized by the governor and council, may issue refunding bonds for the purpose of paying any bonds issued under the provisions of this chapter at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such times prior to the maturity or redemption of the bonds being refunded as the treasurer may determine. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other expenses from the proceeds of such refunding bonds as may be required by a trust or security agreement or resolution securing the bonds. The authorization and issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties and obligations of the state in respect to the same shall be governed by the provisions of this chapter relating to the issue of the bonds other than refunding bonds insofar as the same may be applicable.

228-A:8 Bonds Not General Obligations. Except as provided in the following sentence, bonds issued under the provisions of this chapter shall not be general obligations of the state for which its full faith and credit is pledged, nor shall they be payable out of any funds other than the funds provided therefor in this chapter, nor shall they be deemed debt of the state in determining its borrowing capacity under any applicable law. Notwithstanding the foregoing, the general court may from time to time authorize the use of any other funds of the state to pay any portion of bonds issued under the provisions of this chapter.

228-A:9 Separate Funds. Any debt service fund, construction fund, debt service reserve fund, or other fund established in connection with the issuance of bonds under this chapter shall be kept separate from other moneys of the state. The moneys deposited in any such funds, together with income derived from any investments held as part of such funds, shall be expended without further authorization or appropriation as provided for in the trust or security agreement or resolution establishing such funds.

228-A:10 Trust Funds. All moneys received pursuant to the provisions of this chapter, whether as proceeds from the issue of bonds, as revenues, or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. All such trust funds shall be deposited, upon receipt, into the federal highway grant anticipation bond trust fund, which is hereby established as a subaccount of the highway fund. In order to increase the marketability of any bonds issued by the state pursuant to this chapter at the lowest possible cost to the state, all federal highway construction trust funds, any other funds hereafter appropriated to the federal highway grant anticipation bond trust fund and investment earnings on funds held or credited to the federal highway grant anticipation bond trust fund or on the proceeds of any bonds issued pursuant to this chapter and secured by the federal highway grant anticipation bond trust fund are hereby impressed with a trust for the benefit of the owners from time to time of such bonds. Such funds may be applied by the state, without appropriation, solely for the purposes of paying the principal or purchase price of, redemption premium, if any, and interest on such bonds in the fiscal year in which such funds are received, or in any subsequent fiscal year, as such amounts come due or may be paid or deemed paid prior to maturity in accordance with their terms and further satisfying the terms of any trust or security agreement or resolution entered into in accordance with RSA 228-A:3 or credit facility entered into in accordance with RSA 228-A:4. Such payments with respect to the bonds may include, without limitation, the payment of any fees and expenses related to the bonds, maintaining reserves, if any, under any trust or security agreement or resolution or credit facility and paying reimbursement amounts in respect of any credit facility.

228-A:11 Investment of Funds. Moneys in any fund or account created under the provisions of this chapter, subject to the terms and provisions of any trust or security agreement or resolution applicable thereto, may be invested in accordance with RSA 6:7 and RSA 6:8. Except as otherwise provided by any such trust or security agreement or resolution, obligations so purchased as an investment of moneys in said fund or account shall be deemed at all times to be a part of said fund or account, and the interest thereon and any profit arising on the sale thereof shall be credited to said fund or account, and any loss resulting on the sale thereof shall be charged to said fund or account, respectively.

228-A:12 Agreement with Bondholders. The state pledges to and agrees with the holders of bonds issued under this chapter that until such bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, 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 holders, the state shall:

I. 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 by or under the provisions of this chapter and on its behalf to be performed; and

II. Not issue any bonds, notes, or other evidences of indebtedness, other than federal highway grant anticipation bonds, having any rights secured by any pledge of or other lien or charge on the revenues or any moneys or securities paid or to be paid to or held or to be held by the state or the treasurer hereunder, and shall not create or cause to be created any lien or charge on the revenues, any such moneys or securities, other than a lien and pledge thereon created by or pursuant to the provisions of this chapter; provided that nothing in this section shall prevent the state from issuing evidences of indebtedness which:

(a) Are secured by a pledge or lien which is and shall on the face of said evidences of indebtedness be expressed to be subordinate and junior in all respects to every lien and pledge created by or pursuant to the provisions of this chapter;

(b) Pledge the full faith and credit of the state and which are not expressly secured by any specific lien or charge on revenues or any such moneys or securities; or

(c) Are secured by a pledge of or lien on moneys or funds to be derived on and after such date as every pledge or lien thereon created by or pursuant to the provisions of this chapter shall be discharged and satisfied; and

III. Not divert federal highway construction trust funds from the purposes identified herein except as provided in the trust or security agreement or resolution or credit facility relating thereto nor shall the trusts with which they are hereby impressed be broken, and the pledge and dedication in trust of such funds shall continue unimpaired or unaborogated.

228-A:13 Prior Covenants and Contracts Not Affected. The provisions of this chapter shall not in any way limit, restrict, or alter the obligation or powers of the state to carry out and perform in every detail each and every promise, covenant, agreement, or contract made or entered into, prior to the enactment of this chapter, or limit, restrict, or alter the powers, rights, authority, duties, or obligations of the treasurer or the commissioner of transportation or any other officer of the state to do and perform each and every act or thing required on the part of the state or any such officer to be done or performed by any such promise, covenant, agreement, or contract.

228-A:14 Tax Exemption. Bonds issued under this chapter, their transfer and income therefrom, including any profit made on the sale or transfer thereof, shall at all times be exempt from all taxation by or within the state.

228-A:15 Investment Securities. Notwithstanding any of the provisions of this chapter or any recitals in any bonds issued under this chapter, all such bonds shall be deemed to be investment securities under RSA 382-A.

228-A:16 Eligible Investments. Bonds issued under the provisions of this chapter are hereby made securities in which all public officers, agencies, and authorities of the state and of its political subdivisions, insurance companies, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency, authority, or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state or of any political subdivision is now or may hereafter be authorized by law.

228-A:17 Construction and Effect of Other Laws.

I. The provisions of this chapter shall be deemed to provide an additional and alternative method for the effectuation of the purposes of this chapter and shall be construed to be supplemental to, and not in derogation of, powers otherwise conferred by law; provided, however, that insofar as the provisions of this chapter are inconsistent with the provisions of any general or special law, administrative order or rule, or any limitation imposed by the state, the provisions of this chapter shall be controlling.

II. The provisions of this chapter are severable, and if any provision hereof shall be held invalid in any circumstances, such invalidity shall not affect or impair any other provisions or circumstances.

III. This chapter shall be construed in all respects so as to meet all constitutional requirements. In carrying out the purposes and provisions of this chapter, all steps shall be taken which are necessary to meet constitutional requirements.

IV. This chapter shall be liberally construed to effect the purposes thereof.

58:2 New Subparagraph; Special Fund; Federal Highway Grant Anticipation Bond Trust Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (234) the following new subparagraph:

(235) Moneys received under RSA 228-A, which shall be deposited in the federal highway grant anticipation bond trust fund.

58:3 Funding Project Costs. The proceeds from the sale of any surplus state property, net of any authorized administrative costs incurred by the state, within communities along Interstate 93 from Salem to Manchester shall be segregated and continuously appropriated for the purpose of funding project costs, as defined in RSA 228-A:1, IV, for the widening of Interstate 93 from Salem to Manchester. The commissioner of the department of transportation may allocate these proceeds to pay the principal and interest on any bonds issued pursuant to RSA 228-A:2.

58:4 Report. The department of transportation shall submit a progress report on the construction and financing of the Interstate 93 widening project to the capital budget overview committee, established under RSA 17-J:2, at least every 6 months.

58:5 Effective Date. This act shall take effect July 1, 2005.

(Approved: May 23, 2005)

(Effective Date: July 1, 2005)

Links

HB304 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB304 Revision: 8770 Date: Jan. 21, 2010, midnight

Docket