MUNICIPAL SMALL SCALE POWER FACILITY BONDS

RSA tit. XXXIV, ch. 374-D

in effect

RSA 374-D:1 Definitions.

374-D:1. Definitions. For the purposes of this chapter: I. "Bond" or "note" means a bond or note or other evidence of indebtedness issued under this chapter by a municipality, the payment of principal or interest of which is secured by the revenues derived from a small scale power facility, the full faith and credit and taxing power of such municipality, or any combination thereof. II. "Governing board" means the selectmen of a town, and the commissioners or comparable officers of a county or village district. III. "Municipality" means any county, city, town, or village district within the state. IV. "Small scale power facility" or "facility" means a facility which produces electrical energy solely by the use, as a primary energy source, of biomass, waste, geothermal energy, renewable resources including but not limited to the flow of water, or any combination thereof and which has a rated capacity of not more than 80 megawatts. Such facility shall include all other equipment and structures designed to generate, distribute, and transmit electrical energy either to or from such facility. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:2 Powers.

374-D:2. Powers. Municipalities may design, develop, acquire, and construct small scale power facilities at sites owned or leased by them or otherwise made available to them for a period at least equal to the term of any financing undertaken under this chapter. Municipalities may operate, or may enter into contracts for the operation of, such facilities on such terms and conditions as the governing board may determine. Power produced by such facilities may be transmitted and distributed by a municipality to any user of power or to any public utility, at such price and on such terms and conditions as may be agreed to by the governing board. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:3 Authorization and Issuance of Bonds.

374-D:3. Authorization and Issuance of Bonds. I. Any municipality, when authorized by a 2/3 vote as prescribed in RSA 33, may borrow money through the issuance of bonds or notes to finance the design, development, and acquisition or construction costs, or its share of such costs, of a small scale power facility. Such costs to be financed may include the costs of all equipment necessary for the production, distribution, and transmission of electrical energy, the cost of the site of such facility, if acquired, or any lease payments required to be made before placing the facility in operation, costs for structures housing such equipment, costs for fish passageways and other measures to mitigate environmental or recreational damage, interest charges accruing before, during, and for a reasonable period after the construction of such facility, such reserves for debt service or other capital or current expenses as may be required by a trust agreement or resolution securing such notes or bonds, and all other expenses incidental to the determination of the feasibility of any small scale power facility or to the acquisition, construction, and placing of such facility in operation, or the issuance of bonds or notes to finance it. II. The vote under which bonds or notes are authorized shall state whether the principal and interest thereon is to be secured by the revenues derived from the facility or the full faith and credit and taxing power of the municipality, or both. III. The bonds or notes issued under this chapter may be in term or serial form, may mature at any time or times not exceeding 50 years from the date of issue, and may be made redeemable before maturity with or without premiums. The provisions of RSA 33:2 shall not apply to bonds issued under this chapter. All signatures required to be on such bonds or notes may be either manual or by facsimile. Such bonds or notes shall bear the seal of the municipality or a facsimile of such seal. IV. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or notes issued under this chapter shall cease to be such officer before the delivery of such bonds or notes, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office, until after such delivery. V. The bonds may be issued in registered or bearer form and may contain provisions for exchanging one form for the other. Subject to this chapter and the authorizing vote, the municipality may sell the bonds in such manner, either at public or private sale, for such price as the governing board may determine will best effect the purpose of this chapter. VI. Prior to the preparation of definitive bonds, the municipality may issue interim receipts or temporary bonds exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:4 Notes.

374-D:4. Notes. In anticipation of the issuance of bonds under this chapter, a municipality may issue notes under RSA 33:7-a in the manner provided, except that such notes shall be payable within 8 years from their respective dates, and the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes under this chapter. Such notes, except as they may be renewed or refunded under this chapter, shall be payable only from such sources as the vote authorizing the bonds may specify. Unless otherwise provided in the authorizing vote, the municipality may cause notes to be refunded to the extent provided in this chapter. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:5 Resolution or Trust Agreement Securing Bonds or Notes.

374-D:5. Resolution or Trust Agreement Securing Bonds or Notes. I. In the discretion of the governing board of the municipality, but subject to the terms of the authorizing vote, any bonds or notes issued under this chapter may be secured by a resolution of the governing board, which resolution shall constitute a contract with the bondholders, or by a trust agreement between the municipality and a corporate trustee, which may be any trust company or bank having powers of a trust company in the state of New Hampshire or in the commonwealth of Massachusetts, and such trust agreement or resolution shall be in such form and executed in such manner as may be determined by the governing board of the municipality. Such trust agreement or resolution may pledge or assign, in whole or in part, the revenues and other moneys derived or to be derived by the municipality from its small scale power facility and any contract or other rights to receive such revenues and moneys, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the municipality, and the proceeds thereof. Such trust agreement or resolution may contain, with respect to the small scale power facility and its finances, such provisions for protecting and enforcing the rights, security and remedies of the bondholders or noteholders as may be determined by the governing board and not in violation of law, including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event of default which may include the acceleration of maturities and covenants setting forth duties of, and limitations on, the municipality in relation to the acquisition, construction, improvements, enlargement, alteration, equipping, furnishing, maintenance, use, operation, repair, insurance and disposition of property; the custody, safeguarding, investment, and application of moneys; the issue of additional bonds or notes; the fixing, revision, and collection of fees and charges; the obligations of the municipality to pay for electricity used by it; the use of any surplus bond or note proceeds; the establishment of reserves from bond or note proceeds or revenues; and the replacement of bonds or notes which shall become mutilated or be destroyed or lost. Subject to this chapter, moneys subject to the trust agreement or resolution shall be held, invested, and applied as provided in the trust agreement or resolution, provided that moneys not deposited in trust with a corporate trustee shall be in the custody of the treasurer. Moneys to be applied under the trust agreement or resolution shall be deemed appropriated for the purposes to which they are to be applied and shall be applied without the need for further municipal action under RSA 32 or otherwise. II. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of the bonds or notes or of revenues or other moneys under any such trust agreement or resolution and to furnish such indemnifying bonds or to pledge such securities as may be required by the trust agreement or resolution. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as current operating expenses of the facility. The pledge by any such trust agreement or resolution shall be valid and binding and shall be deemed continuously perfected 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 municipality shall immediately be subject to the lien of such pledge without any physical delivery or segregation 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 of such lien. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded, except in the records of the municipality. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:6 Investment of Proceeds.

374-D:6. Investment of Proceeds. Subject to any applicable trust agreement or resolution, the proceeds of bonds or notes issued under this chapter and any moneys governed by a trust agreement or resolution may be deposited or invested in demand deposits, time deposits, or savings deposits in banks which are members of the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States, or by any agency or instrumentality of the United States, or as may be provided by any other applicable law. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:7 Bonds and Notes Payable Solely From Certain Funds.

374-D:7. Bonds and Notes Payable Solely From Certain Funds. If bonds and notes are issued under this chapter which are not secured by the full faith and credit and the taxing power of the municipality, such bonds or notes shall be payable solely from the funds provided for such bonds and notes under this chapter. The liability of the municipality from other funds is limited to obligations undertaken by the municipality to pay for the electricity used by the municipality, and a statement to this effect shall be included on the face of such bonds and notes. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:8 Remedies.

374-D:8. Remedies. Any holder of bonds or notes issued under this chapter, and the trustee under a trust agreement or resolution securing such bonds or notes, except to the extent the rights given in this chapter may be restricted by such trust agreement or resolution, may bring suit upon the bonds or notes and may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce all rights under the laws of the state or granted under this chapter or under such trust agreement or resolution, and may enforce and compel the performance of duties required by this chapter or by such trust agreement or resolution to be performed by the municipality or by any of its officers. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:9 Bonds and Notes Eligible for Investment.

374-D:9. Bonds and Notes Eligible for Investment. Bonds and notes issued under this chapter are securities in which all public officers and public bodies of the state and its political subdivisions, the New Hampshire municipal bond bank, all insurance companies, trust companies, banking associations, credit unions, building and loan associations, investment companies, executors, administrators, trustees and other fiduciaries, and pension, profit-sharing, and retirement funds may properly invest funds, including capital in their control or belonging to them. Such bonds and notes are securities which may properly 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 or obligations of the state is now or may hereafter be authorized by law. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:10 Tax Exemption.

374-D:10. Tax Exemption. The bonds and notes issued under this chapter, their transfer and the income from them, including any profit made on their sale, shall at all times be free from taxation within the state, excepting only inheritance, estate, and gift tax. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:11 Revenue Refunding Bonds.

374-D:11. Revenue Refunding Bonds. Any municipality having bonds outstanding under this chapter, when authorized by a 2/3 vote as prescribed in RSA 33, may issue refunding bonds for the purpose of paying bonds issued by or on its behalf, at maturity or upon acceleration or redemption. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of and any redemption premium on the bonds being refunded, 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 capital or current expenses from the proceeds of such refunding bonds as may be required by a trust agreement or resolution securing bonds or notes. The issue of refunding bonds, the maturities and other details of them, the security for them, the rights of the holders of them, and the rights, duties, and obligations of the municipality with respect to them shall be governed by the provisions of this chapter relating to the issue of bonds other than refunding bonds insofar as the same may be applicable, provided that the period from initial issuance of a series of bonds or notes until the final maturity of any refunding issue shall not exceed 50 years. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:12 No Other Proceedings Required; Issuance of Bonds or Notes Under Authority Not Precluded.

374-D:12. No Other Proceedings Required; Issuance of Bonds or Notes Under Authority Not Precluded. Bonds and notes may be issued under this chapter without the consent of any department, division, commission, or agency of the state or of any of its political subdivisions and without any proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specifically required by this chapter. The provisions of this chapter authorizing the issue of bonds and notes shall not be deemed to preclude the issue of bonds and notes under any other authority. Source. 1981, 545:6, eff. Aug. 29, 1981.

RSA 374-D:13 Severability.

374-D:13. Severability. If any provision of this chapter or the application of such provision to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. Source. 1981, 545:6, eff. Aug. 29, 1981.

Source: New Hampshire General Court (gc.nh.gov)URL: https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXXIV-374-D.htmFetched: 10/20/2026