HB226 — Version 100

5jan00.....2047h

31may00.....4722-CofC

2000 SESSION

99-0279

08/01

HOUSE BILL 226-LOCAL

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill establishes municipal bond payment schedules, including a special schedule for the city of Concord. This bill also requires each issuance of bonds to be a separate loan.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

5jan00.....2047h

31may00.....4722-CofC

99-0279

08/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

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

280:1 Issuance of Bonds; Payment Schedules; Amount Payable. Amend RSA 162-K:8 to read as follows:

162-K:8 Issuance of Bonds. The municipality may authorize, issue and sell general obligation bonds, which shall mature within 30 years from the date of issue, to finance the acquisition and betterment of real and personal property needed to carry out the development program within the development district together with all relocation costs incidental thereto. Bonds issued under authority of this chapter shall be payable in annual payments which shall be so arranged that the amount of annual payment of principal and interest in any year on account of any bond shall not be less than the amount of principal and interest payable in any subsequent year by more than 5 percent of the principal of the entire bond. The total amount of such payments shall be sufficient to extinguish the entire bond on account of which they are made at maturity. The first payment of principal on any bond shall be made no later than 5 years and the last payment not later than 30 years after the date thereof. Each authorized issue of bonds shall be a separate loan. All dedicated tax increments received by the municipality pursuant to RSA 162-K:10 shall be pledged for the payment of these bonds and used to reduce or cancel the taxes otherwise required to be extended for that purpose, and the bonds shall not be included when computing the municipality's net debt under RSA 33.

280:2 City of Concord; General Obligation Bonds. Notwithstanding any other provision of law to the contrary, the city of Concord may authorize, issue, and sell general obligation bonds, which shall mature within 20 years from the date of issue, to finance the acquisition and betterment of real and personal property needed to carry out the development program within the development district established pursuant to the provisions of RSA 162-K, together with all relocation costs incidental thereto. Bonds issued under authority of this section shall be payable in annual payments which shall be so arranged that the amount of annual payment of principal and interest in any year on account of any bond shall not be less than the amount of principal and interest payable in any subsequent year by more than 10 percent of the principal of the entire bond. The total amount of such payments shall be sufficient to extinguish the entire bond on account of which they are made at maturity. The first payment of principal on any bond shall be made no later than 5 years and the last payment not later than 20 years after the date thereof. Each authorized issue of bonds shall be a separate loan. All dedicated tax increments received by the municipality pursuant to RSA 162-K:10 shall be pledged for the payment of those bonds and used to reduce or cancel the taxes otherwise required to be extended for that purpose, and the bonds shall not be included when computing the city of Concord's net debt under RSA 33.

280:3 Effective Date. This act shall take effect 60 days after its passage.

(Approved: June 21, 2000)

(Effective Date: August 20, 2000)