New Hampshire Revised Statutes 33:7-d – Tax Lien Redemption Notes
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I. Any city or town in which the provisions of N.H. Rev. Stat. § 80:58-86 are in effect may incur debt in anticipation of redemption of real estate tax liens held by the city or town, in order to pay current maintenance and operation expenses or to fund cash deficits, and may issue notes therefor that are secured and made payable in accordance with this section, notwithstanding the provisions of N.H. Rev. Stat. § 33:7.
II. Notes issued under this section shall be general obligations but may also be secured, pursuant to a vote or a resolution of the local legislative body of the city or town, by a pledge of all or a portion of the proceeds of payments in redemption made under N.H. Rev. Stat. § 80:69 and N.H. Rev. Stat. § 80:71. Any such proceeds so pledged shall be deposited upon receipt in a segregated account to be held by the treasurer, or a corporate trustee designated by the treasurer, shall be applied without appropriation to the payment of such notes, and shall not be used for any other purpose until the notes and the interest on such notes are paid in full; provided that any earnings derived from investment of moneys in the account shall be credited to the general fund of the city or town and shall be available for appropriation for any lawful purpose. Any resolution adopted under this section may contain such covenants or restrictions with respect to maintenance, investment and disposition of the account, and any other provisions for protecting and enforcing the rights, security and remedies of the noteholders as may be, in the discretion of the city council or board of selectmen, reasonable and proper and not in violation of law. Any pledge made under this section shall be valid and binding and deemed continuously perfected from the time the pledge is made; and any proceeds so pledged and then held or thereafter acquired shall immediately be subject to the lien of that pledge. The resolution authorizing or creating the pledge need not be recorded other than in the records of the city or town clerk and no filing of the resolution need be made under RSA 382-A.
III. Notes issued under this section may be sold at a discount and shall be payable not later than 3 years from their dates. Notes issued for a shorter period may be refunded by the issue of other notes, provided that the period from the date of issue of the original notes to the date of maturity of the refunding notes shall not exceed 3 years. No notes may be issued or refunded under this section in a principal amount that would cause the total aggregate principal amount of notes outstanding under this section to exceed the total amount of real estate tax liens then held by the city or town.
II. Notes issued under this section shall be general obligations but may also be secured, pursuant to a vote or a resolution of the local legislative body of the city or town, by a pledge of all or a portion of the proceeds of payments in redemption made under N.H. Rev. Stat. § 80:69 and N.H. Rev. Stat. § 80:71. Any such proceeds so pledged shall be deposited upon receipt in a segregated account to be held by the treasurer, or a corporate trustee designated by the treasurer, shall be applied without appropriation to the payment of such notes, and shall not be used for any other purpose until the notes and the interest on such notes are paid in full; provided that any earnings derived from investment of moneys in the account shall be credited to the general fund of the city or town and shall be available for appropriation for any lawful purpose. Any resolution adopted under this section may contain such covenants or restrictions with respect to maintenance, investment and disposition of the account, and any other provisions for protecting and enforcing the rights, security and remedies of the noteholders as may be, in the discretion of the city council or board of selectmen, reasonable and proper and not in violation of law. Any pledge made under this section shall be valid and binding and deemed continuously perfected from the time the pledge is made; and any proceeds so pledged and then held or thereafter acquired shall immediately be subject to the lien of that pledge. The resolution authorizing or creating the pledge need not be recorded other than in the records of the city or town clerk and no filing of the resolution need be made under RSA 382-A.
Terms Used In New Hampshire Revised Statutes 33:7-d
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- legislative body: shall mean a town meeting, school district meeting, village district meeting, city or town council, mayor and council, mayor and board of aldermen, or, when used to refer to unincorporated towns or unorganized places, or both, the county convention. See New Hampshire Revised Statutes 21:47
- Lien: A claim against real or personal property in satisfaction of a debt.
- real estate: shall include lands, tenements, and hereditaments, and all rights thereto and interests therein. See New Hampshire Revised Statutes 21:21
- Trustee: A person or institution holding and administering property in trust.
III. Notes issued under this section may be sold at a discount and shall be payable not later than 3 years from their dates. Notes issued for a shorter period may be refunded by the issue of other notes, provided that the period from the date of issue of the original notes to the date of maturity of the refunding notes shall not exceed 3 years. No notes may be issued or refunded under this section in a principal amount that would cause the total aggregate principal amount of notes outstanding under this section to exceed the total amount of real estate tax liens then held by the city or town.