Bill > S1184

This bill amends Section 20 of Chapter 44 of the General Laws to specify how municipalities and regional governments can use the premium and accrued interest received from the sale of bonds. The key provisions are: (1) any premium and accrued interest, less the cost of preparing and issuing the bonds, must be applied to the first payment of interest on the notes; (2) for bonds excluded from tax levy limits or sold by a regional school district, the premium and accrued interest must be used to pay project costs and reduce the amount authorized to be borrowed; and (3) for other bonds, the premium and accrued interest can be used to pay project costs, reduce the amount authorized to be borrowed, or be appropriated for another authorized borrowing project. The bill also allows up to $50,000 of premium and accrued interest to be used for the payment of indebtedness with the approval of the chief executive officer.

Budget and Finance, Government Affairs

https://malegislature.gov/Bills/191/S1184