INDUSTRIAL DEVELOPMENT OF CITIES AND TOWNS

M.G.L. pt. Part I, tit. Title VII, ch. c. 40D

in effect

M.G.L. c. 40D, § 1 Definitions

c. 40D, § 1. Definitions Section 1. The following words as used in this chapter shall, unless the context requires otherwise, have the following meanings:— (a) ''Authority'', an industrial development financing board established by section two. (b) ''Board'', the board of directors of an authority. (c) ''Bond'', a revenue bond issued for the purpose of financing a project, and shall include interim receipts, temporary bonds or other obligations issued hereunder. (c1/2) ''Cogeneration facility'', as defined in section one of chapter one hundred and sixty-four. (d) ''Construction'' means and includes both construction and acquisition and the term ''to construct'' means and includes both to construct and to acquire. (e) ''Cost of the project'' and ''cost'', the cost of construction, the cost of acquisition of all lands, structures, rights of way, franchises, easements and other property rights and interests and related riparian or water rights, the cost of demolishing, removing or relocating any buildings, structures or utilities on lands acquired or to be acquired, including the cost of acquiring any lands to which such buildings, structures or utilities may be moved or relocated, the cost of all labor, materials, machinery and equipment, financing charges, interest on all bonds prior to and during the carrying out of a project and for a period not exceeding one year after completion thereof, the cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, other expenses necessary or incidental to determining the feasibility or practicability of projects, administrative expenses, reimbursement to the municipality of advances to the authority under section nineteen, and for planning costs and other preliminary expenses made for the benefit of but prior to the formation of the authority, and such other expenses as may be necessary or incidental to the projects, the financing thereof, placing of the same in operation and the issuance of bonds under this chapter, including but not limited to the establishment and funding of reserves to secure such bonds. (f) ''Current expenses'', the amount of reasonable and necessary current expenses in connection with any project as the same may be more fully defined in the trust agreement relating to a project, and shall in any event include the fees and expenses of the trustee under the trust agreement securing bonds issued to finance such project. (g) ''Federal agency'', the United States of America, the President of the United States of America, and any department of or corporation, agency or instrumentality heretofore or hereafter created, designated or established by the United States of America. [There is no clause (h).] (i) ''Financing document'', a lease, installment sale agreement, conditional sale agreement, mortgage or loan agreement between a municipality acting by and through an authority as lessor, seller, mortgagee or lender and a user as lessee, purchaser, mortgagor or borrower. (j) ''Governing body'', in a city having a Plan D or Plan E charter the city manager and the city council and in any other city the mayor and city council, and in towns the board of selectmen. (k) ''Improvement'', includes reconstruction, remodeling, rehabilitation, extension, enlargement and ''to improve'' includes to reconstruct, to remodel, to rehabilitate, to extend, to enlarge and to improve. (l) ''Industrial enterprise'', an enterprise engaged in applying skill and labor to the giving of new shapes, new qualities or new combinations to matter as material products or to the assembly, processing, preservation, storage, handling or transportation of manufactured or natural products, or to stationary facilities and equipment necessary or useful in connection with railroad operations, including railroad rights of way and all associated tracks and facilities or to the making of works of art by self-employed artists or to the construction, renovation and equipment of a medical diagnostic imaging facility which has been granted a certificate of need in accordance with the provisions of section twenty-five C of chapter one hundred and eleven or to the construction and renovation of a nursing or convalescent home licensed under the provisions of section seventy-one of chapter one hundred and eleven, including renovations for energy conservation purposes or to the operating of a continuing care facility. Industrial enterprise shall also include the operation of a child care center or a school-aged child care program, as defined in section 1A of chapter 15D. Industrial enterprise shall also include an enterprise primarily or incidentally engaged in cogeneration by means of cogeneration facilities or in production of electric energy by means of small power production facilities. In any city or in a town subject to the provisions of clause (k) of subdivision (2) of section twelve, industrial enterprise shall also include commercial enterprise, which shall mean the conduct of a trade or business. A project undertaken by a nonprofit corporation authorized by law to provide facilities for educational, cultural or social services, including provision of working capital, or a project undertaken by a governmental entity for governmental purposes shall be deemed to constitute an industrial enterprise but shall not be deemed to constitute a commercial enterprise. Projects located within the boundaries of an empowerment zone as it may have been established in a city or town, pursuant to regulations of the United States Department of Housing and Urban Development, 24 CFR subsections 597 and 598, shall be deemed to constitute an industrial enterprise but shall not be deemed to constitute a commercial enterprise. Bonds may be issued under this chapter to finance costs of such facilities, including such costs paid prior to the authorization of such bonds as the board of directors of the Massachusetts Industrial Finance Agency, referred to in this chapter as the MIFA board, shall approve in connection with the provision of such facilities; and for this purpose the term commercial enterprise shall be read to include the operation of such facilities, but the requirements of clause (e) of subsection (2) of section twelve shall not apply if the MIFA board determines that the issuance of the bonds will result in a public benefit. Rental housing, other than residential housing operated in connection with a continuing care facility and facilities to be rented primarily to transient guests, may not be financed under this chapter. Artists' studios having incidental living accommodations attached thereto shall not be deemed to be rental housing within the meaning of this chapter. (m) ''Industrial development facilities'', facilities used in connection with any industrial, or research and development enterprise or any part thereof, located within or partially within the municipality creating an authority, including any or all buildings, docks, wharves, ships, improvements, additions, extensions, replacements, appurtenances, land, rights in land, riparian rights, water rights, franchises, machinery, equipment, furnishings, landscaping, utilities, approaches, roadways, energy conservation facilities, facilities designed to reduce consumption of petroleum products and other facilities necessary or desirable in connection therewith or incidental thereto, such as, but not limited to, office, warehouse, terminal, transportation and back-up power generating facilities, which facilities need not merely be in connection with or incidental to other facilities if the operation of such facilities themselves is an industrial enterprise. (n) ''Municipality'', a city or town or, where the context requires, two or more cities or towns joining together to form an authority to carry out industrial development. (o) ''Pollution Control Facilities'', facilities for the prevention, avoidance, reduction, control, abatement, elimination or monitoring of pollution of air or of waters by any means by industrial enterprises, public utilities or others, including, but not limited to, any air pollution control facility, noise abatement facility, water management facility, thermal pollution control facility, waste water collection system, waste water treatment works, sewage treatment works, sewage treatment system or site, and including any or all property, rights, franchises and facilities necessary or desirable in connection therewith or incidental thereto. (p) ''Project'', industrial development facilities, pollution control facilities or solid waste disposal facilities, or the construction, acquisition, equipping or improvement thereof or any combination of the foregoing. (q) ''Public utility'', any gas company or electric company as defined in section one of chapter one hundred and sixty-four, or any municipal corporation which owns or may acquire municipal lighting plants as referred to in section two of said chapter one hundred and sixty-four or any person, firm, association, or private corporation which owns or operates works or a distribution plant for the manufacture and sale or distribution and sale of gas for heating and illuminating purposes, or of electricity, within the commonwealth as referred to in section two of said chapter one hundred and sixty-four or any domestic electric utility or foreign electric utility as defined in section one of chapter one hundred and sixty-four A. (q1/2) ''Small power production facility'', as defined in section one of chapter one hundred and sixty-four. (r) ''Solid waste disposal facilities'', facilities for the disposal of refuse, garbage and waste or any of the foregoing, by incineration or other means, including any or all property, rights, franchises and facilities necessary or desirable in connection therewith or incidental thereto. Solid waste disposal facilities may include facilities for the manufacture of electricity or steam primarily from solid waste and facilities for the manufacture of electricity from steam produced primarily from solid waste, in either case with pipes, wires, boilers, generators and other equipment incidental thereto. For the purpose of this clause the word ''primarily'' shall be deemed to mean not less than ninety per cent net thermal units in normal operation. Solid waste disposal facilities may also include additions and modifications to boiler facilities in existence on January first, nineteen hundred and seventy-eight, owned or operated by a public utility, which additions or modifications are necessary or desirable to permit any such boiler facility to burn solid waste or a mix of solid waste and other fuel. (s) ''Trust agreement'', an agreement or indenture securing one or more series of bonds of an authority and complying with the provisions hereof. (t) ''User'' means one or more persons acting as lessee, purchaser, mortgagor or borrower under a financing document and may include a party who transfers the right of use and occupancy to another party by lease, sublease or otherwise. (u) ''Continuing care facility'', a facility at which there is furnished to individuals, other than an individual related by consanguinity or affinity to the person furnishing such care, board and lodging together with nursing services, medical services or other health related services, regardless of whether or not the lodging and services are provided at the same location, pursuant to an agreement effective for the life of the individuals or for a period in excess of one year.

M.G.L. c. 40D, § 2 Industrial Development Financing Authority; creation; consolidated authorities; dissolution

c. 40D, § 2. Industrial Development Financing Authority; creation; consolidated authorities; dissolution Section 2. There is hereby created in each municipality a board to be known as the Industrial Development Financing Authority, hereinafter referred to as the authority; provided, that no such authority shall organize or be organized, transact any business, employ any personnel or exercise any powers until the city council, with the approval of the city manager, in a city having a Plan D or Plan E form of charter, the city council, with the approval of the mayor, in any other city, or by the board of selectmen, in a town, shall by vote declare that an industrial development financing authority is needed therein and that (1) unemployment or the threat thereof exists in the municipality, or (2) security against future unemployment and lack of business opportunity is required in the municipality, and that unemployment or the threat thereof can be alleviated or the security against future unemployment and lack of business opportunity can be provided, by attracting new industry to the municipality or substantially expanding industry existing in the municipality through an industrial development project or projects financed under this chapter. In determining the need for such an authority the city council or the town shall take into consideration its ability to adjust to any expected increase in the demand for municipal facilities and services as a result of the expected increase in employment and business activity from such industrial development. If a municipality votes for the establishment of an authority, the original directors of such an authority from that municipality shall be appointed forthwith as provided in section three. Two or more contiguous municipalities may agree to consolidate their respective industrial development financing authorities into a single authority for both or all of said municipalities as hereinafter provided. Every such authority shall be managed, controlled and governed by its directors, appointed or elected as provided in this section or in section three. In the event two or more municipalities wish to consolidate their industrial development financing authorities, or to establish a consolidated authority, each such municipality shall so indicate by vote of its city council or its board of selectmen, as the case may be, which shall state the desire to consolidate authorities with a designated municipality or municipalities or to establish a consolidated authority with the designated municipality or municipalities. Such a vote may be adopted at the same time as a vote to organize an authority or after an authority has been organized in one or more of such municipalities. As soon as possible after the appointment and qualification of the original directors of an authority under section three the city or town clerk shall file a certified copy of the vote for the establishment of such authority and a certificate of such appointment and qualification with the board and with the Massachusetts office of business development, and a duplicate thereof in the office of the state secretary. If the state secretary finds that the industrial development financing authority has been established and the directors thereof have been appointed according to law, he shall issue to it a certificate of organization, which certificate shall be conclusive evidence of the lawful establishment of the authority and of the appointment of the directors thereof. If two or more municipalities vote to consolidate their respective authorities, the clerk of each such municipality shall forthwith file a certified copy of such vote and, if an authority has not previously been established in one or more such municipalities, said clerk shall also file certificates of appointment and qualification, as the case may be, of the directors of such authority from that municipality with the board and agency and a duplicate thereof in the office of the state secretary. If the state secretary finds that each of the municipalities have voted that their respective authorities should be consolidated, and he finds that the directors have been appointed according to law, he shall issue to it a certificate of consolidation and such certificate shall be conclusive evidence of the lawful consolidation and establishment of such authority and the appointment of the directors thereof. Whenever an industrial development financing authority determines that there is no further need for its existence, that it has no property to administer, other than funds or property, if any, to be paid or transferred to the municipality by which it was established, and that all its outstanding obligations have been satisfied, it may by a majority vote of its directors submit the question of its dissolution, in a town, to the voters at an annual town meeting or, in a city having a Plan D or Plan E charter, to the city manager and the city council, and in any other city, to the mayor and city council. If a municipality, or in the case of a consolidated authority each constituent municipality, votes for such dissolution and the Massachusetts office of business development is satisfied of the existence of the facts required herein, it shall so certify to the state secretary and said authority shall be dissolved forthwith subject to the applicable provisions of section fifty-one of chapter one hundred and fifty-five. An industrial development financing authority is a board of the municipality and not a separate entity. Programs and activities authorized under this chapter are to be carried out by an authority in the name and on behalf of a municipality or municipalities and contracts made, property acquired and earnings, if any, in connection with a project are those of the municipality by and through which the authority acts. The commonwealth reserves the power at its discretion, and at any time to alter or change the structure, organization programs or activities of an industrial development financing authority, including the power to terminate the authority, subject to any limitation on the impairment of contracts entered into by the municipality acting by and through the authority. Any net earnings of a municipality acting by and through an industrial development financing authority, beyond that necessary for retirement of indebtedness incurred by it or to implement the public purpose or program of the municipality acting by and through the authority may not inure to the benefit of any person other than the municipality. Upon dissolution of an industrial development financing authority, title to all property owned by the municipality acting by and through the authority shall continue to be vested in the municipality. In the case of a consolidated authority, the property shall be divided upon dissolution among the municipalities represented by it in such proportions as the municipalities may from time to time agree or, in the absence of such agreement, in the proportions prescribed by section eight to the extent the same are applicable or, to the extent said proportions are not applicable in proportions determined by the finance board to be equitable.

M.G.L. c. 40D, § 3 Board of directors of authority; appointment; terms

c. 40D, § 3. Board of directors of authority; appointment; terms Section 3. Except as provided herein relative to consolidated authorities, each industrial development financing authority shall be governed by a board of five directors. Said directors shall be appointed in a city by the mayor or by the city manager in a Plan D or Plan E municipality, subject, in either case, to confirmation by the city council, and in a town by the board of selectmen; provided, that the directors originally appointed shall be appointed to serve for terms of one, two, three, four and five years, respectively, measured in each case from the April first next following their original appointment. At least one director shall be experienced in financial matters, one in real estate matters and one in town or city government. In the case of a consolidated industrial development financing authority, there shall be five directors for each constituent municipality appointed as herein before provided. Membership on the board of directors of an industrial development financing authority shall be restricted to residents of the municipality or in case of a consolidated authority to residents of the constituent municipality from which they are appointed. No person shall be disqualified from serving as a director by reason of holding any other appointive or elective office in the municipality. For the purposes of chapter two hundred and sixty-eight A, the directors of such authority shall be deemed to be special municipal employees. Upon the expiration of the term of any director of an authority, his successor shall be appointed in like manner for a term of five years, or in the case of an appointment made to fill a vacancy, for the unexpired term. Any director shall continue in such capacity upon the expiration of his term until his successor is appointed and qualified. Whenever the membership of the board of directors of an authority is changed, by appointment, resignation or removal, a certificate and duplicate certificate to that effect shall promptly be filed as provided in section two upon the appointment and qualification of the original directors. A duplicate certificate so filed with the state secretary shall be conclusive evidence of the change in membership of the authority referred to therein.

M.G.L. c. 40D, § 4 Removal of directors; interested directors

c. 40D, § 4. Removal of directors; interested directors Section 4. The governing body of a municipality may make, or may receive, written charges against, and may after hearing remove, because of inefficiency, neglect of duty and misconduct in office, or any of such causes, a director of an industrial development financing authority, appointed from such municipality; provided, that such director shall have been given, not less than fourteen days before the date set for such hearing, a copy in writing of the charges against him and written notice of the time, date and place of the hearing to be held thereon, and at the hearing shall have been given the opportunity to be represented by counsel and to be heard in his own defense. Pending final action upon any such charges, the governing body may temporarily suspend such director, provided that if it finds that such charges have not been substantiated, it shall immediately reinstate him in his office. In case of any such removal, such governing body shall forthwith deliver to the clerk of the municipality for filing with the certificate, and with the duplicate certificate, attested copies of such charges and of its findings thereon. A director who ceases to be a resident of the city or town shall be removed upon the date of his change of residence by operation of law. The provisions of chapter two hundred and sixty-eight A shall apply to all directors, officers and employees of the authority, except that the authority may purchase from, sell to, borrow from, loan to, contract with or otherwise deal with any person in which any director of the authority is in any way interested or involved provided, however, that such interest or involvement is disclosed in advance to the members of the board and recorded in the minutes of the board; and provided further, that no director having such an interest or involvement may participate in any decision of the board relating to such person. Employment by the municipality or service in any agency or board thereof shall not be deemed to be such an interest or involvement.

M.G.L. c. 40D, § 5 Officers; oaths; records of proceedings; quorum; trade secrets; property and business of authority

c. 40D, § 5. Officers; oaths; records of proceedings; quorum; trade secrets; property and business of authority Section 5. The board of directors of an industrial development financing authority shall elect from among its directors a chairman and a vice-chairman, and may employ counsel, an executive director who shall not be subject to section nine A of chapter thirty or to chapter thirty-one who shall be ex officio secretary of the authority, a treasurer who may be a member of the authority and such other officers, agents and employees as it deems necessary or proper, and shall determine their qualifications, duties and compensation, and may delegate to one or more of its directors, agents or employees such powers and duties as it deems necessary or proper for the carrying out of any action determined upon by it. So far as practicable an authority shall make use of the services of the agencies, officers and employees of the city or town in which it is organized, and such city or town shall, if so requested, make available such services. Each member of the board before entering upon his duties shall take an oath before the city or town clerk to administer the duties of his office faithfully and impartially, and a record of such oaths shall be filed in the office of said clerk. The secretary shall keep a record of the proceedings of the board and shall be custodian of all books, documents and papers filed with the board and of the minute book or journal of the board and of its official seal. He shall have authority to cause copies to be made of all minutes and other records and documents of the board and to give certificates under the official seal of the board to the effect that such copies are true copies, and all persons dealing with an authority may rely upon such certificates. Three members of the board shall constitute a quorum and the affirmative vote of three members of the board shall be necessary for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all duties of the board. Any documentary materials or data whatsoever made or received by any director, officer, agency or employee of the authority or the governing body of a municipality and consisting, or to the extent that such materials or data consist of trade secrets or commercial or financial information regarding the operation of any business conducted by an applicant for any form of assistance which the municipality is empowered to render or regarding the competitive position of such applicant in a particular field of endeavor, shall not be deemed public records of the municipality and specifically shall not be subject to the provisions of section ten of chapter sixty-six. Any discussion or consideration of such trade secrets or commercial or financial information may be held by the authority or governing body in executive sessions closed to the public notwithstanding the provisions of section twenty-three B of chapter thirty-nine, but the purpose of any such executive session shall be set forth in the official minutes of the authority or the governing body, as the case may be, and no business which is not directly related to such purpose shall be transacted nor shall any vote be taken during such executive session. The board shall have full authority to manage the properties and business of the authority and to prescribe, amend and repeal by-laws, rules and regulations governing the manner in which the business of the authority may be conducted, and the powers granted to it may be exercised.

M.G.L. c. 40D, § 6 Compensation and expenses of directors

c. 40D, § 6. Compensation and expenses of directors Section 6. The directors of an industrial development financing authority shall serve without compensation as such but each director shall be reimbursed for all necessary travel and other expenses incurred by him in the discharge of his official duties. The compensation of the executive director shall be subject to review and approval by the Massachusetts office of business development. Such compensation, if any, and expenses shall be allocated by the authority among its various projects, in such manner and amounts as it deems proper and shall constitute current expenses thereof.

M.G.L. c. 40D, § 7 Powers of municipalities

c. 40D, § 7. Powers of municipalities Section 7. (a) For the purpose of carrying out a project as authorized by this chapter, a municipality acting by or through an industrial development financing authority shall have the following powers to the extent that the same are not elsewhere in this chapter expressly limited: (i) to acquire, purchase, hold, lease as lessee and use any franchise, facilities, or property, real, personal or mixed, tangible or intangible, wherever located, within the municipality or contiguous thereto or any interest therein necessary or desirable for carrying out the purposes of the authority, and to sell, mortgage, lease as lessor, transfer and dispose of any property or interest therein at any time acquired by it; (ii) to construct and to improve, maintain and repair industrial development pollution control and solid waste disposal facilities; (iii) to issue bonds as herein provided; (iv) to make contracts of every name and nature and to execute all instruments necessary or convenient for the carrying on of its business; (v) without limitation of the foregoing, to borrow money and accept grants from and to enter into contracts, leases or other transactions with the commonwealth or its agencies or instrumentalities, any federal agency, any municipality, bank or other financial institution, corporation or other authority organized under this chapter; (vi) to pledge, hypothecate or otherwise encumber all or any of the revenues or receipts or property or interests in property of the authority as security for bonds of the authority; (vii) in the event of a default by a user under a financing document to do all things deemed by it necessary or desirable to preserve, protect or operate any project or other property furnished as security under such financing document and the rights of the holders of any bonds secured by the revenues from such financing document; (viii) to loan the proceeds of any issue of bonds to a user in order to finance the cost of a project, which loan may be either unsecured or secured by an interest in the project or other tangible or intangible property or by a combination of the foregoing; (ix) to consent, subject to the provisions of any contract with bondholders, and without the requirement for making additional findings pursuant to section twelve, whenever it deems it necessary or desirable in the fulfillment of the purposes of this chapter, to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, maturity date or any other terms, of any bond, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the municipality, acting by and through an authority, is a party. (b) An authority shall have no power at any time or in any manner on behalf of a municipality or otherwise to exercise the power of eminent domain and nothing in this chapter shall be deemed to confer upon any municipality any power to take any property or interest therein by eminent domain. An authority shall have no power to pledge the faith and credit or taxing power of the commonwealth or any political subdivision thereof. No such authority shall engage in the usual promotion of industrial development activities. (c) Nothing in this chapter shall be deemed to permit the financing by a municipality of a plant for the manufacture or distribution of gas or electricity except (i) back-up power generating or distribution facilities or other facilities for the supply of gas or electricity to occupants of an industrial development project financed under this chapter, (ii) pollution control facilities, (iii) solid waste disposal facilities, (iv) small power production facilities, and (v) cogeneration facilities.

M.G.L. c. 40D, § 8 Financing documents; excess payments

c. 40D, § 8. Financing documents; excess payments Section 8. Any financing document authorized by this chapter shall: (i) be for a term not in excess of ninety-nine years; (ii) provide for payments sufficient to amortize the principal and interest of all bonds and other obligations of the municipality issued or incurred to pay the cost of the project and current expenses of the municipality incurred in connection therewith; and (iii) provide in the case of the lease of a project by the municipality to a user that the lessee shall pay to the municipality acting by and through an authority or otherwise assume and pay all other cost of maintaining and operating the project including taxes and assessments on the lessee's interest in the project or excises as hereinafter in this chapter provided. Any financing document may contain any other provision deemed necessary or desirable by the authority, including without limitation, in the case of the lease of a project by the municipality to a user, renewal or purchase options but any purchase option shall provide at a minimum for payment sufficient to reimburse the authority for all its current expenses incurred in connection with the project and to pay in full all bonds and other obligations of the authority together with interest thereon issued or incurred in connection with the project and unpaid at the time such option is exercised together with premiums, if any, payable in the event such bonds are called for redemption at the earliest practicable date. Any such purchase option may provide for payment of no additional consideration if all such expenses, bonds, or other obligations and interest have been paid in full when such option is exercised. Any amounts paid by a user under any renewal or purchase option in excess of that necessary to pay such expenses, bonds or other obligations and interest shall be paid over on receipt by the authority, or directly, if the existence of the authority has terminated, to or for the account of the municipality which established the authority. If the authority is a consolidated authority, such payments shall be divided among the municipalities establishing such consolidated authority in such proportions as they may from time to time agree or, in the absence of agreement, in proportion to the average assessed value of the leased property for the three years next preceding the acquisition thereof by the constituent municipalities acting by and through the consolidated authority.

M.G.L. c. 40D, § 9 Borrowing money and issuance of bonds; trust agreements

c. 40D, § 9. Borrowing money and issuance of bonds; trust agreements Section 9. Any municipality acting by and through an industrial development financing authority is hereby authorized and empowered to borrow money in furtherance of the purposes of this chapter and to evidence the same by the issuance of bonds. The bonds may be of one or more series. Any bonds issued under the provisions of this chapter shall be secured by a trust agreement by and between the issuing municipality acting by and through an authority and a corporate trustee, which shall be located within the commonwealth and shall be a trust company or bank having the powers of a trust company, a savings bank as provided in section sixty-six D of chapter one hundred and sixty-eight or a co-operative bank as provided in section thirty-two E of chapter one hundred and seventy. Such trust agreement may pledge or assign the interest of the municipality acting by and through the authority as lessor, seller, mortgagee or lender under the financing document and may convey or mortgage any project or other property held thereunder or any part thereof. Such trust agreement shall contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the issuing municipality in relation to the construction, acquisition, equipping or improvement of any project or other property held under the financing document and the duties to be imposed on a user or other party with respect thereto, including the improvement, maintenance, operation, repair and insurance thereof, and the custody, safeguarding and application of all moneys and may contain provisions for the employment of consulting engineers and other experts and specialists in connection with such projects or property. It shall be lawful for any bank or trust company incorporated under the laws of the commonwealth or such savings bank or co-operative bank, which may act as depository of the proceeds of the bonds or of revenues, to furnish such indemnifying bonds or to pledge such securities as may be required by the issuing municipality. Such trust agreement shall set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, such trust agreement may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement may be treated as an item of current expenses.

M.G.L. c. 40D, § 10 Requisites for issuance and status of bonds

c. 40D, § 10. Requisites for issuance and status of bonds Section 10. All bonds shall be authorized by resolution of the board of the issuing authority. The principal amount of each issue of bonds shall be sufficient after due allowance for bond discount and expense to pay the estimated cost of the project or projects on account of which such bonds shall be issued, less amounts, if any, contributed or to be contributed from other sources to pay the cost of such project or projects. All bonds shall mature at such time or times not exceeding fifty years from their date, as may be determined by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. Each issue of bonds shall be serial or term or a combination of both types. The term of the bonds shall not exceed the useful life of the project or, if issued to finance more than one project, the average useful life of the projects being financed, plus in either case the period if any from the date of the bonds to the estimated date of completion of the project, or such longer term as the finance board deems reasonable. A determination by the authority, if made, shall be conclusive evidence of the useful life of the project or the average useful life of the projects being financed, as the case may be. In determining the reasonableness of continuing amortization beyond the estimated useful life, the finance board may take into account such factors as it deems relevant, including, without limitation, the financial capability of the user. The authority shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the commonwealth. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. Notwithstanding any other provision of this chapter or any recitals in any bonds issued under the provisions of this chapter, all such bonds shall be deemed to be negotiable instruments under the laws of the commonwealth. The bonds may be issued in coupon or in registered form or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of coupon and registered bonds. The authority may sell such bonds in such manner, either at public or private sale, and for such price as it may determine to be for the best interests of the municipality. Notwithstanding the provisions of this section or any other provisions of this chapter, the resolution or resolutions authorizing the issuance of bonds of the municipality, acting by and through an authority, may delegate to the chairman, vice chairman, or any director of the authority or any combination of them, the power to determine any of the matters set forth in this section and the power to award the bonds to a purchaser or purchasers at public sale or to negotiate a sale to a purchaser or purchasers; provided, however, that in the latter case that such issue of bonds is to be reoffered to the public. Bonds issued under this chapter shall not constitute a debt or pledge of the faith and credit of the issuing municipality, but such bonds shall be payable solely from the income or revenues received under a financing document or in connection with a project or projects or from funds derived from the issuing or refunding bonds authorized under section seventeen. All such bonds shall contain on the face thereof a statement to the effect that the bonds are not an obligation of the issuing municipality but are payable solely from the rents or other revenues pledged for their payment. Prior to the preparation of the definitive bonds, the issuing municipality may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the same are available for delivery and which shall be deemed to be of the same series as said definitive bonds. The municipality may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the commonwealth or the governing body, and without any other proceedings or the happenings of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter, including a receipt of a certificate of convenience and necessity from the Massachusetts office of business development. Such bonds shall not be included in computing the borrowing capacity of a municipality under chapter forty-four or any other limitation on the issuing of general indebtedness by a municipality and shall not be subject to the provisions of any other general or special law or chapter provision relating to the issuance or sale of bonds or notes by a municipality. Not more than fifty per cent of any series of bonds shall be sold by an authority acting for and in behalf of a municipality or by underwriters acting as first purchasers thereof to a user of a project financed by the proceeds of such series of bonds.

M.G.L. c. 40D, § 11 Proceeds of bonds

c. 40D, § 11. Proceeds of bonds Section 11. If the proceeds of the bonds initially issued, by reason of increased construction costs or error in estimates or otherwise, shall be less than the amount required for the purpose for which such bonds are authorized, additional bonds may in like manner, and without any requirement of obtaining a certificate of convenience and necessity therefor, be issued by a municipality to provide the amount of such deficiency and shall be deemed to be of the same series and shall be entitled to payment from the same fund or funds as the bonds first issued without preference or priority of the bonds first issued. If the proceeds of the bonds initially issued shall exceed the amount so required, such excess shall be deposited to the credit of the sinking fund for such bonds.

M.G.L. c. 40D, § 12 Issuance of bonds; conditions

c. 40D, § 12. Issuance of bonds; conditions Section 12. No bonds of any series shall be issued by a municipality under this chapter except bonds issued under section eleven unless the following conditions have been complied with: (1) The governing body of the municipality or in case of a consolidated authority the governing bodies of the constituent municipalities shall by vote approve the project (which shall be described in general terms), the estimated cost thereof and the financing thereof by bonds to be issued pursuant to this chapter. In any city a vote required under this section shall be deemed an emergency matter and may be passed in such manner as is provided for emergency orders or ordinances in its charter, and shall be in full force and effect immediately upon final favorable action thereon by its city council or the mayor, as the case may be, or upon the expiration of any period specified by such charter for the approval or disapproval of such orders if no action is taken to approve or disapprove such an order within such period, notwithstanding any provision of general or special law or ordinance to the contrary. (2) The board of directors of the Massachusetts Industrial Finance Agency, hereinafter called the MIFA board, shall have approved the bonds to be issued under this chapter. To obtain such approval, an authority shall first submit to the MIFA board an application therefor in such form and containing such information, data and exhibits as may from time to time be prescribed by the MIFA board, to which application shall be appended as part thereof, in substantially the form proposed to be executed, copies of the trust indenture or agreement, including the form of bonds, securing the bonds which are the subject of the petition, the resolution of the authority authorizing the issuance of the bonds in question and the financing document. None of the documents constituting the application need set forth the price at which the bonds are to be sold or matters dependent on such price, such as, but not limited to, redemption provisions. The MIFA board shall review the complete application and shall approve the bonds described in said application, if it finds that: (a) the user is a responsible party; (b) the provisions of the financing document are reasonable and proper, and in making such determination the MIFA board may take into account such factors as it deems relevant including, without limitation, the remedies of the municipality upon default of the user; (c) in the case of the lease or sale of a project by the municipality to a user, the provisions of the lease or installment sale agreement relative to the rights of the municipality and the lessee or purchaser, as the case may be respecting the disposition of the project upon payment in full with interest of all the bonds are in the public interest; (d) the trust agreement protects the public interest affected by its provisions; (e) the project will provide employment, or security against loss of employment, having a reasonable relationship to the principal amount of the bonds to be issued therefor, taking into account, among other things, the investment per employee of comparable industrial facilities; (f) adequate provision is being or will be made to meet any increased demand upon community public facilities that might result from the project; (g) the size and scope of the project is such that a definite benefit to the economy of the commonwealth may reasonably be expected to result from the construction or improvement thereof; (h) the bonds, the trust agreement and the financing document comply with the provisions of this chapter; (i) in cases where the project consists of or includes the acquisition, equipping or improvement of existing facilities and such acquisition, equipping or improvement is not incidental to the construction and equipping of entirely new facilities, the completed project will be of suitable type and scope for its intended purpose; (j) the payments under the financing document are adequate to pay the current expenses of the authority in connection with the project and the principal of the bonds as they come due and interest thereon; (k) the project has, so far as feasible, been located in a low income area of a municipality so that employment opportunities will become available to residents of such area, and, in the case of a project including a commercial enterprise or incidental thereto for use by a governmental or nonprofit entity, the project is located in a predominantly commercial area for which a commercial area revitalization plan has been adopted by the governing body of the municipality and approved by the secretary of economic development and the project is consistent with the plan. The purposes of a commercial area revitalization plan shall be to prevent or arrest and reverse the decay of the area covered by the plan. The plan shall describe the area and set forth the development or redevelopment, including public improvements, proposed to carry out the purposes of the plan. Nothing herein shall preclude the undertaking of such development or redevelopment through urban renewal or an economic development and industrial corporation or by other means, subject to the laws applicable thereto. In exercising the power of approval granted by this clause, said secretary shall, among other lawful and relevant considerations, seek to avoid and correct the deterioration of older commercial centers which result from the movement of commercial enterprise to previously noncommercial areas; (l) the sponsor of the project does not do business in the Union of South Africa absent compliance with the platform of guiding principles as defined in subdivision (5) of section twenty-three of chapter thirty-two. The MIFA board shall consult with the appropriate local and regional planning agencies to ascertain the relationship of a proposed project to any existing state, local or regional comprehensive plan. Such review shall be accomplished as expeditiously as practicable and in any event the MIFA board shall act with respect to the bonds described in an application within twenty days, Sundays and holidays excluded, of the submission of said application. If the MIFA board does not approve the issuance of bonds, it shall state its reasons therefor and offer the applicant an opportunity to submit an application as amended so as to meet the MIFA board's objections. A favorable recommendation may contain such conditions as the MIFA board deems in the public interest, such as, but not limited to, a requirement that contracts for the construction of the project or for the acquisition of materials therefor let by the authority be awarded as a result of competitive bidding. The MIFA board may not, however, in any way require that any contract let by a user be made the subject of competitive bidding. The issuance of a certificate of convenience and necessity shall conclusively evidence that the finance board has made such determinations of facts or circumstances, has given such approvals and has reached such opinions as are prerequisite to the issuance of such certificate. (3) The bonds, the financing document, the trust agreement and the bond issue resolution, as executed or adopted as the case may be, are substantially in the form submitted to the finance board.

M.G.L. c. 40D, § 13 Deposit of proceeds from bonds

c. 40D, § 13. Deposit of proceeds from bonds Section 13. The proceeds from the sale of any bonds shall be deposited with the trustee under the trust agreement to the credit of a special fund or funds to be used solely for the payment of the cost of the project and shall be disbursed in such manner and under such restrictions as may be provided in the trust agreement, except that such amount as may be provided in the trust agreement for paying the expenses of the authority prior to the time when the revenues of the project are available for such purpose may be paid over to the authority and such amount as may be provided in the trust agreement, or otherwise, for reimbursing a municipality for advances made under section nineteen may be paid over to such municipality.

M.G.L. c. 40D, § 14 Rentals and moneys payable under lease; payment to trustee under trust agreement for repayment of bonds; pledges; trust agreements

c. 40D, § 14. Rentals and moneys payable under lease; payment to trustee under trust agreement for repayment of bonds; pledges; trust agreements Section 14. All rentals or other monies payable under a financing document shall be paid to the trustee under the trust agreement securing the bonds. The issuing municipality acting by and through an authority is further authorized to pledge such rentals and other revenues to the payment of the interest on and the principal of said bonds. Such pledge shall be valid and binding from the time when the pledge is made; the rentals or other revenues or other monies so pledged and thereafter received by the municipality acting by and through an authority or the trustee on its behalf shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and 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 issuer, irrespective of whether such parties have notice thereof. A trust agreement by which a pledge is created or a financing statement need not be filed or recorded under the Uniform Commercial Code or otherwise except in the records of the authority. The monies so pledged shall be set aside, at such regular intervals and in such amounts as may be provided in the trust agreement, in the sinking fund for the payment of such interest, principal and the redemption price or purchase price of such bonds. The use and disposition of monies to the credit of such sinking fund shall be subject to the provisions of the trust agreement. Except as may otherwise be provided in the trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another. The balance of such rentals and other revenues not needed for such sinking fund requirements shall be applied as may be provided in the trust agreement.

M.G.L. c. 40D, § 15 Trust funds

c. 40D, § 15. Trust funds Section 15. All monies received by an issuing municipality acting by and through an authority pursuant to the provisions of this chapter, whether as proceeds from the sale of revenue bonds or as revenues, shall be deemed to be trust funds, to be held and applied solely as provided in this chapter. The trust agreement shall provide that any officer to whom, or any bank or trust company to which, such monies shall be paid shall act as trustee of such monies and shall hold and apply the same for the purposes hereof, subject to such regulations as this chapter and the trust agreement may provide.

M.G.L. c. 40D, § 16 Bondholders remedies

c. 40D, § 16. Bondholders remedies Section 16. Any holder of bonds issued under the provisions of this chapter or of any of the coupons appertaining thereto, and the trustee, except to the extent the rights herein given may be restricted by the trust agreement securing the same, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the commonwealth or granted hereunder or under the trust agreement, and may enforce and compel the performance of all duties required by this chapter or by the trust agreement to be performed by the issuer or by any officer or agency thereof.

M.G.L. c. 40D, § 17 Revenue refunding bonds

c. 40D, § 17. Revenue refunding bonds Section 17. A municipality acting by and through an authority is hereby authorized to provide by resolution for the issuance of its revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, if deemed advisable by the issuing municipality acting by and through its authority for either or both of the following additional purposes:—(i) constructing improvements, of any project and (ii) paying all or any part of the cost of any additional project. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the issuer in respect of the same, shall be governed by the provisions of this chapter in so far as the same may be applicable.

M.G.L. c. 40D, § 18 Deposit of funds; reports and financial statements; audits

c. 40D, § 18. Deposit of funds; reports and financial statements; audits Section 18. All monies of any authority from whatever source derived shall be paid to the treasurer of the authority, except the proceeds of bonds and rentals or other revenues from a project or under a financing document which secures bonds, which shall be paid as provided in the trust agreement securing such bonds. Such monies shall be deposited in the first instance by the treasurer in one or more banks or trust companies in one or more special accounts, and each of such special accounts to the extent the same is not insured shall be continuously secured by a pledge of direct obligations of the United States of America, of the commonwealth or of the municipality in which the authority is established, having an aggregate market value exclusive of accrued interest, at all times at least equal to the balance on deposit in such account. Such securities shall either be deposited with the treasurer, or be held by a trustee or agent satisfactory to the authority. All banks and trust companies are authorized to give such security for such deposits. The monies in said accounts shall be paid out on the warrant or other order of the chairman of the authority, or of such other person or persons as the authority may authorize to execute such warrants or orders. Every authority shall file an annual report with the Massachusetts office of business development and with the municipality creating the authority on forms prepared and distributed by the said department. Every authority in a municipality which has issued bonds under this chapter shall have its books, accounts and records audited annually by a certified public accountant and a copy of his audit report shall be attached to and be made a part of the aforesaid annual report. A concise financial statement shall be published annually, at least once in a newspaper of general circulation in the city or town in which the principal office of the authority is located. If such publication is not made by the authority, the city or town shall publish such statement at the expense of the authority. If the authority fails to make such an audit, then the controller, auditors or accountant designated by the municipality are hereby authorized and empowered from time to time to examine at the expense of the authority the accounts and books of the authority, including its receipts, disbursements, contracts, financing documents, sinking funds, investments and other matters relating to its finances, operations and affairs. The state auditor shall have the right to examine the books, accounts and records of any authority.

M.G.L. c. 40D, § 19 Appropriations

c. 40D, § 19. Appropriations Section 19. Any municipality may appropriate money for the benefit of an authority for organizational expenses, and for operating expenses and to transfer for use by any such authority, with or without consideration, any interest in real or personal property or interest therein for facilities, not directly related to a particular project or projects. Any municipality may appropriate money for planning and other preliminary expenses for a particular project or projects; provided, however, that such municipality shall be reimbursed from the proceeds of bonds issued to finance such project for all such advances.

M.G.L. c. 40D, § 20 Exemption from taxation; leased property

c. 40D, § 20. Exemption from taxation; leased property Section 20. The operation and maintenance of the projects by a municipality acting by and through an authority will constitute the performance of essential governmental functions, and an authority or municipality shall not be required to pay any taxes or assessments upon any project constructed or any property acquired or used by either under the provisions of this chapter. Income derived therefrom by such authority or municipality shall not be subject to taxation by the commonwealth. Bonds issued under this chapter, and any income derived therefrom, including any sale, exchange or transfer of such bonds, shall at all times be free from taxation. Land and buildings of a municipality or authority shall, if leased for any activity or transaction entered into by the lessee for financial profit or gain, whether or not to an industrial occupant, be taxed by the city or town in which such land and buildings may be situated to the lessees thereof respectively, in the same manner as such land and buildings would be taxed to such lessees if they were owners thereof, except as follows: (a) the payment of the tax shall not be enforced by any lien upon or sale of such land or buildings, but for the purpose of enforcing the payment of such taxes by such lessees to the city or town in which such land or buildings are situated, a sale of the leasehold interest therein may be made by the collector of the city or town in the manner provided by law for selling real estate for the nonpayment of real estate taxes; (b) real estate acquired by a municipality and leased for any activity or transaction described above to a corporation or group of corporations operating under chapter one hundred and twenty-one A shall be taxed as provided therein and not otherwise. Tangible personal property of a municipality or authority shall, if leased for any activity or transaction entered into by the lessee for financial profit or gain, whether or not to an industrial occupant, be subject to taxation under chapter fifty-nine and be taxed by the city or town in which such property may be situated to the lessee thereof in the same manner and to the same extent as such property would be taxed to such lessee if such lessee were the owner thereof. If such lessee is subject to the excise levied under the provisions of sections thirty to fifty-one, inclusive, of chapter sixty-three, such tangible personal property shall be treated as though it were owned by such lessee for the purposes of such excise, and it shall be valued at eight times its annual rental rate, unless and to the extent that such property is treated by the lessee as owned by it for federal income tax purposes, in which case its value shall be its adjusted basis, as defined in the applicable provisions of the federal Internal Revenue Code, as amended and in effect for such year. All tangible property, real or personal, so leased shall be considered tangible property owned or rented and used in the commonwealth by such lessee for the purposes of section thirty-eight of chapter sixty-three. If, and to the extent that, the governing body or bodies and the board or boards of assessors approve, a lease meeting the requirements of section twelve may as to improvements on or to real estate constituting a shipyard, a substantial portion of which is found by the state industrial finance board to be devoted to federal government contract work, specify which facilities are to be treated as real estate and which are to be treated as personal property for tax purposes, and such classification shall be conclusive during the term of the lease.

M.G.L. c. 40D, § 21 Solid waste disposal facilities; financing authorities; organization; consolidation and dissolution; bonds; contracts; production and sale of steam as a by-product; applicable laws; government grants or loans

c. 40D, § 21. Solid waste disposal facilities; financing authorities; organization; consolidation and dissolution; bonds; contracts; production and sale of steam as a by-product; applicable laws; government grants or loans Section 21. (a) A municipality acting by and through an authority may finance solid waste disposal facilities in the same manner provided by this chapter for industrial development facilities, except as otherwise hereinafter provided. (b) A city or town, acting in the manner specified in section two, may by vote declare that an authority is needed therein for the financing of solid waste disposal facilities under this chapter but shall not be empowered to so finance said solid waste disposal facilities, except as an incident to industrial development facilities, unless such declaration is made. Such vote shall be made separately from a vote declaring that an authority is needed to finance industrial development facilities, except such as constitute or are incidental to said solid waste disposal facilities. Such declarations may be made successively but only one authority shall be organized under this chapter in any city or town except as otherwise provided with respect to consolidated authorities. (c) A certificate of organization issued by the state secretary shall indicate whether the authority has solid waste disposal powers or industrial development powers or both. When a new power is added by city or town action under this chapter, an amended certificate of organization shall be issued accordingly. Certificates of organization so issued by the state secretary shall be conclusive evidence that the authority has solid waste disposal powers or industrial development powers, or both, as set forth therein. (d) A vote to consolidate authorities taken prior to the adoption of this section shall not be deemed to include the function of financing solid waste disposal facilities. A vote taken thereafter to so consolidate may include said function of financing solid waste disposal facilities or industrial development facilities, or both. If said vote does not specify the function or functions, it shall be taken to refer only to the financing of industrial development facilities. (e) Dissolution proceedings in the manner provided for in section two shall apply to authorities having functions relative to solid waste disposal facilities or to industrial development facilities, or both. (f) The requirements of clauses (e), (g) and (k) of subsection (2) of section twelve shall not apply to solid waste disposal facilities projects. It shall be necessary, however, that the state industrial finance board find, after consultation with the departments of natural resources and highways, that a substantial public benefit will result from the project and that the proposed facilities are consistent with state plans for the conservation of the natural resources of the commonwealth and with plans of the department of highways for the construction of such solid waste disposal facilities. (g) All cities, towns and other public agencies and private parties are authorized from time to time to contract with users or operators of solid waste disposal facilities established or to be established under the provisions of this section for the disposal of refuse, garbage and waste or for the purchase or use of by-products or residue resulting from the operation of such facilities. Such contracts may be for such periods as agreed upon by the parties and, without limiting the generality of the foregoing, may include provisions for the delivery of minimum amounts of refuse, garbage and waste and payments for the use of the facilities to be based thereon; provided, however, that such provisions do not result in the imposition of a contract penalty for municipal participation in a commonwealth approved program of residential source separation of recyclable materials, for unit prices, which may be graduated, and for adjustments thereof. Such contracts may also include provisions for the payment or performance of obligations imposed on cities, towns or other public agencies notwithstanding the interruption, curtailment or abandonment of construction or operation of the facilities; provided, however, that it shall be contrary to public policy to enforce such obligations against a city, town or other public agency unless notice of an operating permit granted approval by the department of environmental protection for the facility shall have been recorded as provided in section one hundred and fifty A of chapter one hundred and eleven, and the interruption, curtailment or abandonment is attributable to circumstances which are beyond the control of the contractor or operator of the facilities and which render it physically or commercially impracticable or legally impermissible to operate the facilities even if the facilities conformed to the operating plans and specifications for which said operating permit was recorded. Such payments, unit prices or adjustments need not be specifically stated in said contract but may be determined by formulae if set forth therein. Such contracts may include provisions for arbitration and reasonable restrictions against other disposal by cities, towns, or other public agencies of the substances covered thereby while the contract is in force and disposal under the contract is practicable. In the case of a city or town, such contracts may be entered into by officers acting under the authority of the city council of a city or the town meeting in the case of a town, which authorization may be general. The obligations represented by the payments to be made in such a contract shall not be included in any determination of the borrowing capacity of such city or town under any limitation on its indebtedness. Such a contract shall not be subject to section four of chapter forty and shall not be precluded by the acceptance of section nine A of chapter ninety-two. To the extent of uncommitted capacity, any municipality shall be entitled to contract with a user or an operator of solid waste disposal facilities established or to be established hereunder. (h) The establishment and operation of solid waste disposal facilities hereunder shall be subject to applicable laws except as otherwise provided herein. Reasonable requirements may be imposed thereon by proceedings or regulations pursuant to section one hundred and fifty–A of chapter one hundred and eleven but the assignment of a site may not be rescinded, other than on appeal from the original assignment, pursuant to said section or otherwise. In the event that solid waste disposal facilities financed in whole or in part hereunder include or are to include facilities for the production of steam as a by-product, either the financing authority or a corporation, whether domestic or foreign, or other person owning, occupying or operating the facilities shall have the powers granted by section 12 of chapter 158 but the production and sale of the steam and the foregoing grant of powers shall not cause the corporation to be otherwise subject to chapter 158 or excluded from chapter 156 or chapter 156D or cause the corporation to be considered a heat or power company for the purposes of the corporation laws of the commonwealth. (i) A municipality acting by and through an authority in connection with a project for solid waste disposal facilities financed under this chapter may apply for, accept and use any federal or state grant or loan for such project.

M.G.L. c. 40D, § 22 Pollution control facilities; financing; findings; financing authority; applicable laws

c. 40D, § 22. Pollution control facilities; financing; findings; financing authority; applicable laws Section 22. (a) A municipality acting by and through an authority may finance pollution control facilities in the same manner provided by this chapter for industrial development facilities, except as otherwise hereinafter provided. (b) The requirements of clauses (e), (g), (i), and (k) of subsection (2) of section twelve shall not apply to projects for pollution control. It shall be necessary, however, that the state industrial finance board find that a substantial public benefit will result from the project and in the case of pollution control facilities for water, the division of water pollution control in the department of environmental protection, or, in the case of pollution control facilities for air, the commissioner of environmental protection, has found that the project as designed is in furtherance of the purpose of abating or controlling water pollution or air pollution, as the case may be. (c) An authority having industrial development powers or solid waste disposal powers, heretofore or hereafter organized, shall also have pollution control powers under this section but the provisions of this section shall not affect the power of a municipality, acting by and through an authority, to finance pollution control facilities as a part of an industrial development project or solid waste disposal project.

M.G.L. c. 40D, § 23 Pollution control, cogeneration, and small power production facilities; grants or loans

c. 40D, § 23. Pollution control, cogeneration, and small power production facilities; grants or loans Section 23. A municipality acting by and through an authority in connection with a project for pollution control facilities, cogeneration facilities or small power production facilities financed or to be financed under this chapter may apply for and accept and use any grant, loan, or grant and loan of federal or state funds for such pollution control facilities, cogeneration facilities or small power production facilities.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleVII/Chapter40DFetched: 10/20/2026