Issuance of Bonds; Temporary Notes

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Section 11. In addition to the notes issued under the provisions of section nine, the commission may provide by resolution for the issuance from time to time of bonds of the commission for any of its corporate purposes or the borrowing of money in anticipation of the issuance of such bonds. Bonds may be issued hereunder as general obligations of the commission or as special obligations payable solely from particular funds. Without limiting the generality of the foregoing, such bonds may be issued to pay or refund notes issued by the commission pursuant to section nine, to the cost of any extension, enlargement, or improvement of the water works system or the sewer works system, to provide such reserves for debt service, repairs and replacements or other costs or current expenses as may be required by a trust agreement or resolution securing bonds of the commission, or for any combination of the foregoing purposes.

The commission may also provide by resolution for the issuance from time to time of temporary notes in anticipation of the revenues to be collected or received by the commission in any year, or in anticipation of the receipt of federal, commonwealth or local grants or other aid, including the refunding or renewal of notes issued by the municipality in anticipation of such receipts outstanding at the effective date of this chapter. The issue of such notes shall be governed by the provisions of this chapter relating to the issue of bonds other than such temporary notes as the same may be applicable; provided, however, that notes issued in anticipation of revenues shall mature no later than one year from their respective dates and notes issued in anticipation of federal, commonwealth or local grants or other aid and renewals thereof shall mature no later than the expected date of receipt of such grants or aid. Notes in anticipation of revenues issued to mature less than one year from their dates may be renewed by the commission from time to time by the issue of other temporary notes hereunder; provided, however, the period from the date of an original note to the maturity of any note issued to renew or pay the same or the interest thereon shall not exceed one year.


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