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CHARTER

FOR THE

PORTSMOUTH WATER AND FIRE DISTRICT

Acts and Amendments:

Hereinafter as so amended called the "district charter"

                  CONTENTS

                  SECTION 1 .........................INCORPORATION BOUNDARIES

                  SECTION 2 .........................ELECTORS

                  SECTION 3 .........................ELECTIONS

                  SECTION 4 ........................ADMINISTRATIVE BOARD

                  SECTION 4A .....................COMMISSIONERS AT LARGE

                  SECTION 4B .....................ELIMINATE TWO BOARD MEMBERS

                  SECTION 5 .......................WATER SUPPLY CONTRACTING

                  SECTION 5A .....................MANDATORY CONNECTION

                  SECTION 6 .......................NON PAYMENT - WATER

                  SECTION 7 .......................HYDRANTS AUTHORITY & POWER TAKING PRIVATE PROPERTY

                  SECTION 8 .......................ACQUIRING LAND & RIGHTS OF WAY

                  SECTION 9 ......................WATER SYSTEM AUTHORITY

                  SECTION 10 ....................AUTHORITY TO TAX

                  SECTION 11 ....................BONDING

                  SECTION 12 ....................PENALTIES

                  SECTION 13 ....................TAMPERING

                  SECTION 13A .................USE OF TREASURY

                  SECTION 13B .................INVESTMENT OF FUNDS

                  SECTION 13C .................VALIDITY OF BONDS & NOTES

                  SECTION 13D .................FEDERAL ADVANCES AND GRANTS

                  MISCELLANEOUS SECTIONS

                  SECTION 8 .....................REDEMPTION OF EXISTING BONDS

                  SECTION 9 .....................TAXES IN ADDED TERRITORY

                  SECTION 10 ...................EXISTING LAWS TO REMAIN

                  SECTION 11 ...................CONSTITUTIONALITY

SECTION 1

INCORPORATION

BOUNDARIES

Enacted: 1952

Amended: 1956, 1965

Section 1. There is hereby incorporated a district to be known as the Portsmouth water and fire district. The district shall consist of the entire area of the town of Portsmouth, excluding the following:

(a)   all islands which are outside the perimeter of Aquidneck island and not presently connected thereto by a bridge or causeway;

(b)   the United States naval base; and

(c)   the area bounded by the United States naval base, the Middletown town line, the center line of West Main road and the northeasterly boundary of the property of the Rhode Island industrial foundation.

Said district may have a common seal, sue and be sued and enjoy the other powers generally incident to a corporation.

SECTION 2

ELECTORS

Enacted: 1952

Amended: 1965

Section 2. The inhabitants of the district qualified to vote for town officers shall be electors of the district and as such shall be eligible to vote in all elections of officers of the district.

SECTION 3

ELECTIONS

Enacted: 1956

Amended: 1965, 1968, 1990

Section 3. An election of officers shall be held in the district on the second Wednesday in June in every year, beginning in 1966 at such place within the district as may be determined by the administra­tive board. The polls shall open at 7:00 A.M. and close at 9:00 P.M., or as otherwise the times for the opening and closing of polls may be set by the laws of the State of Rhode Island governing general elec­tions held in the Town of Portsmouth. It shall be the duty of the clerk to give notice of each election by posting such notice in at least 10 public places within the district at least 7 days before the election.

For a person to become a candidate at an election hereunder, he must secure the signatures of at least 25 registered voters in the district. The petition must be filed in the office of the clerk of the district not later than 4:00 P.M. on the thirtieth day prior to the election, and the clerk shall certify as to whether a sufficient number of signers have affixed their signatures thereto.

The general election laws shall govern elections hereunder so far as applicable and consistent with the provisions of this act and the local canvassing board shall canvass and correct the voting lists, but the other functions ordinarily performed by the local canvassing board shall be performed by or under the authority of the administrative board. Paper ballots may be used in the discretion of the administra­tive board and the elections shall be at the expense of the district. The ballots shall contain no designation of party or political prin­ciple and there shall be no primaries or other preliminary elections.

SECTION 4

ADMINISTRATIVE BOARD

BY-LAWS

Enacted: 1952

Amended: 1965

Section 4. The powers of the district shall be exercised by the administrative board. The administrative board shall consist of a moderator, clerk, treasurer, three assessors and a collector of taxes. In addition to their common duties and powers as members of the board, their duties and powers shall be within the district such as like officers of towns in this state have in their respective towns, so far as apt. The term of office of the clerk elected in 1964 shall be extended to the second Wednesday in June of 1966. The terms of office of the two assessors elected in 1964, other than the chairman of the assessors, and the term of office of the collector of taxes elected in 1964 shall be extended to the second Wednesday in June of 1967. The term of office of the assessor elected in 1964 who has been designated chairman of the assessors and the terms of office of moderator and treasurer elected in 1964 shall be extended to the second Wednesday in June of 1968. Upon the expiration of the term of any officer a successor shall be elected for a term of three years. Any vacancy that may occur shall be filled by the remaining members of the board until the next annual election at which time a successor shall be elected for the unexpired term, but the board may continue to act despite a vacancy or vacancies on the board. All officers shall serve until the election and qualification of their successors. Whenever two offices having the same title and term are to be filled at the same election, there shall be a single contest for both offices and the two candidates receiving the highest numbers of votes shall be elected. All elections shall be at large. Forthwith after the passage of this act and after each annual district election, the assessors shall choose one of their number as chairman of the assessors and the administrative board shall choose one member of the board as chairman of the district. The two chairmen may be the same person.

The district may adopt such by‑laws and from time to time rescind or amend the same, as it shall deem necessary and proper for the purposes of this act and not repugnant thereto and not inconsistent with any other law, provided that no greater penalty shall be inflicted thereby than is prescribed in section 12 hereof. The district may appoint such committees as it may deem necessary and may fix the compensation of all officers, agents, employees and committees of the district.

SECTION 4A

COMMISSIONERS AT LARGE

Enacted: 1965

Amended: 1990

Section 4A. In addition to the members of the administrative board prescribed by section 4, the board shall include two commission­ers at large who shall be elected at a special district election which shall be held on September 30, 1965, at such place within the district as may be determined by the administrative board. Such election shall be notified in the same manner as annual elections in the district, the polls shall open and close at the times set forth in section 3 of the District's Charter, as amended, relating to elections held by the District, and the provisions of the second and third paragraphs of section 3 shall also be applicable with respect to such election. There shall be a single contest for both offices of commissioners at such special election, and the two candidates receiving the highest numbers of votes shall be elected. They shall serve until the regular annual election in June of 1966; and they, and their successors who shall be elected for three year terms thereafter, shall be subject to the provisions of section 4.

SECTION 4B

ELIMINATE TWO BOARD SEATS

Enacted: 1993

Section 4B. From and after the second Wednesday in June, 1993, the office of the tax assessor elected in 1992 and the office of one (1) of the commissioners at large elected in 1990 shall be eliminated. The aforementioned office of tax assessor was unfulfilled as of Febru­ary 1, 1993 due to the death of the officeholder, and the office of one (1) of the commissioners at large elected in 1990 shall become vacant due to the resignation of that officeholder effective as of June 8, 1993. The administrative board shall, from and after the second Wednesday in June, 1993, consist of the seven (7) remaining members, including a moderator, clerk, treasurer, two (2) assessors, a collector of taxes and a water commissioner, and all the powers of the district shall be exercised by said administrative board. The adminis­trative board shall be empowered to act at any duly called meeting, and any action taken thereat shall be valid so long as there shall be in attendance a quorum of said administrative board. For purposes of this act a quorum shall mean not less than four (4) members of said administrative board.

The tax assessors shall perform their duties as provided in this act and as are normally performed by persons in like positions for the towns and cities. In the event that the two (2) assessors disagree on any action to be taken in the performance of their duties, whether or not specifically prescribed hereunder, the matter shall be referred to the administrative board for a vote thereon, and the vote of a major­ity of those in attendance at such meeting shall be binding, upon said assessors.

SECTION 5

WATER SUPPY

CONTRACTING

Enacted: 1952

Amended: 1956, 1963, 1965

Section 5. The district is hereby authorized to obtain and maintain for the district a supply of water for the extinguishing of fire, and for distribution to the inhabitants of the district, for domestic use and for other purposes, and may obtain such water by the establishment of its own works, or by contracting therefor as provided below, or in such other manner as to the district may seem necessary and proper and is not inconsistent with law. The district may also furnish water to the inhabitants of the town of Portsmouth outside of the boundaries of the district. If the district shall undertake to distribute the water so obtained, it shall have the exclusive right thereto and may maintain an action against any person for using the same without the consent of the district, and may regulate the distribution and use of said water within and without said district, and from time to time fix water rates and charges for the water and water facilities furnished by the district, which may be based upon the quantity of water used or the number and kind of water connections made or the number and kind of plumbing fixtures installed on the estate or upon the number or average number of persons residing or working in or otherwise connected therewith or upon any other factor affecting the use of or the value or cost of the water and water facilities furnished or upon any combination of such factors, and the owner of any house, building, tenement or estate shall be liable for the payment of the water rates and charges fixed by the district; and such water rates, and charges shall be a lien upon such house, building, tenement, and estate in the same way and manner as taxes assessed on real estate are liens, and if not paid as required by the district, shall be collected by said district in the same manner that taxes assessed on real estate are by law collected. Nothing in this section or any other section of this act, shall be construed as giving to the district an exclusive franchise to furnish water outside of the boundaries of the district.

Without limiting the generality of the foregoing provisions as to water rates and charges, any contract for the sale of water to inhabitants of the town of Portsmouth outside of the boundaries of the district may be recorded in the same manner as a deed of land and, upon such recording, the obligations of the owner of the real property involved shall be a lien on such property and such lien shall be enforceable in the same manner as taxes assessed on real estate are by law col­lected.

The district is authorized to contract for periods not exceeding 40 years with the state, any other muni­cipal or quasi‑municipal corporation or with the own­ers of any privately owned water system for the pur­chase or sale of water or for the use of water facilities and the state, such other municipal or quasi‑municipal corporations and the owners of privately owned water systems are authorized to enter into such contracts with the district.

SECTION 5A

MANDATORY CONNECTION

Enacted: 1956

Section 5A. The administrative board may by resolu­tion order the owner of any estate abutting any portion of any street or highway in which any main constitut­ing part of the district's water system is situated to con­nect the water‑using facilities on said estate with such main. Such order shall name the owner and describe the estate, but no error or insufficiency therein shall in­validate such order as long as either is reasonably iden­tified.

Such order shall be served by delivery to the owner, tenant or occupant or by posting or leaving a copy on the estate. If the owner shall fail to comply with such order within thirty days after such service, he shall be subject to a fine of not less than $5 or more than $25 for each period of twenty‑four hours after the expiration of such thirty days, during which such failure shall continue, and the administrative board shall have the right at any time after the expiration of such thirty days to enter upon the estate and perform the work required by ­such order and the owner shall be liable for the cost to the district of performing such work. From and after the service of any such order, the estate shall be subject to water rates and charges as though the estate were connected with such main.

SECTION 6

NON PAYMENT - WATER

Enacted: 1952

Amended: 1956

Section 6. In case of non‑payment of any water rates, charges and penalties authorized or established by this act with respect to any house, building, tenement or estate, said district is hereby authorized by its agents and servants to enter such house, building, tenement or estate, and to then and there shut off the water therefrom as and when it may deem advisable, and said district shall not thereafter be compelled to supply water again to the owner, tenant or occupant of such house, building, tenement or estate, until all water rates, charges and penalties due and unpaid to said district shall have been paid in full.

SECTION 7

HYDRANTS

AUTHORITY & POWER

TAKING PRIVATE PROPERTY

Enacted: 1952

Amended: 1965

Section 7. The district may establish such public hy­drants in such public places as it may see fit and pre­scribe for what purposes the same shall be used, all of which it may change in its discretion. Hydrant ren­tals shall be charged to the town of Portsmouth for each year at such rates as the district may establish.

The town shall also be subject to the water rates for other water consumed by the town.

For the purposes of this act the district shall have and enjoy all the authority and power conferred upon the electors or town council of any town, by the pro­visions of chapter 39‑15 of the general laws, entitled “Water supply”, and of all acts in amendment thereof and in addition thereto, and when exercising such power and authority shall be subject to all the duties and liabilities imposed by said chapter and acts upon towns and town councils.

Upon taking any private property or interests therein, the district shall deposit in the superior court, for the payment of compensation on account of the property or properties, or interests, so taken, such sum as the court shall determine to be amply sufficient to satisfy the claims of all persons interested in the prop­erty (and the court may, in its discretion, take evidence to determine the sum to be deposited); the use of such funds for such purpose shall be a fixed obligation of the district to the extent required for such purpose; the full faith and credit of the district shall be deemed pledged to pay such compensation as may be awarded or agreed upon; and the treasurer shall pay the same from any funds available therefor, which shall include but shall not be limited to the funds so deposited. Upon application of the district, the court may refund to the district any money on deposit which is determined to be in excess of the amount needed.

The notice specified in section 39‑15‑6 shall be given to the interested party personally or left at his last and usual place of abode in this state with some person living there. If the party is absent from this state and has no last and usual place of abode therein occupied by any such person, the notice shall be left with the persons, if any, in charge of or having possession of the land involved and another copy shall be mailed to the address of the absent party if the same is known to the officer or person making the service.

If any property or right is taken in which an infant or other person not capable in law to act in his own behalf is interested, the superior court may appoint a guardian ad litem for such infant or other person if such infant or other person is not represented in Rhode Island by a guardian or conservator. Any guardian ad litem or guardian or conservator, may, with the approval of the superior court, agree with the district on the compensation to be paid and, upon receipt of the same, release to the district all claim for damages on behalf of the infant or other incapacitated person.

SECTION 8

ACQUIRING LAND

& RIGHTS OF WAY

Enacted: 1952

Amended: 1965

Section 8. The district may acquire by agreement, purchase or condemnation such land and rights of way as may be necessary for the purposes of the district. Whenever the district desires to take any land by condemnation it shall file with the town clerk a description, plan and statement of such land to be taken and a statement that such land is taken by the district pursuant to the provisions of this act. Such statement shall be signed by the moderator and clerk of the district, and thereupon the district may commence proceedings for the acquisition of such land in accordance with the provisions of section 7 hereof.

SECTION 9

WATER SYSTEM AUTHORITY

Enacted: 1952

Amended: 1965

Section 9. The district may within and without the district, and within the limits of the town of Portsmouth, without the consent of the town, drive, lay, make, construct and maintain pipes, aqueducts, conduits, machinery or other equipment or appliances or authorize the same to be done, and regulate the use thereof; and for the purposes aforesaid, the district is authorized to lay, maintain and operate its pipes and other necessary equipment across the Seaconnet river, so‑called, between the town of Portsmouth and the town of Tiverton; and may carry any works to be constructed, or authorized to be constructed by it, over or under any highway, turnpike, railroad or street, in such manner as not to permanently obstruct or impede travel thereon; and may enter upon and dig up any highway, turnpike, road or street for the purpose of laying down pipes or building aqueducts, upon or beneath the surface thereof, or for the purpose of repairing the same, and if in the course of such making, constructing, or repairing, any pipe, conduit or other structure lawfully located in such highway, turnpike, road or street is damaged, or if the location of such pipe, conduit or other structure is changed, the district shall reimburse the owner of such pipe, conduit or other structure for such damage, or for the expense of such change of location. The district shall restore any such highway, turnpike, road or street so dug up, to as good condition as before such work was done. All pipes, conduits, aqueducts, machinery, implements, equipment, appliances and all other property of the district used by the district for the purposes provided for by this act, shall be exempt from all taxes and assessments for state, town or district purposes.

SECTION 10

AUTHORITY TO TAX

Enacted: 1952

Amended: 1956, 1965, 1979

Section 10. The district shall have power to order such taxes and provide for assessing and collecting the same on the ratable real estate and tangible personal property except for motor vehicles which are registered under chapter 3 of title 31 of the Rhode Island General Laws as it shall deem necessary for the purpose of obtaining and maintaining a supply of water and distributing the same for the extinguishing of fire, power, domestic and other uses; and for estab­lishing and maintaining and constructing water works, driving wells, and operating the same and acquiring and leasing real estate and other property and prop­erty rights necessary for a water supply, and laying and maintaining pipes, conduits, aqueducts and other structures connected therewith and purchasing imple­ments, machinery and other appliances; and for the payment of the current expenses of the district; the payment of such officers, employees and other agents as the district is authorized to elect, appoint or other­ wise choose under this act; also for the payment of any indebtedness that has been or may be incurred by the district; and such taxes so ordered shall be assessed by the assessors of the district on the taxable inhabi­tants and the property therein according to the last valuation made by the assessors of the town next pre­vious to said assessment, adding however any taxable property which may have been omitted by said town assessors or afterwards acquired, and in all cases where the town assessors have included property within and without the district in one valuation, the assessors of the district shall make an equitable valuation of that portion of said property lying within the district; and in assessing and collecting of said taxes such pro­ceedings shall be had by the officers of the district as near as may be, as are required to be held by the cor­responding officers of towns in assessing and collection town taxes; and the collector of taxes for the district shall, for the purpose of collecting taxes assessed by the district, have the same powers and authority as are now by law conferred on collectors of taxes for towns in this state. The district may provide for such deduction from the tax assessed against any person if paid by an appointed time, or for such penalty by way of percentage on the tax if not paid at the appointed time, not exceeding 12 per cent per annum as it shall deem necessary to insure punctual payment; provided, however, that the tax assessed in any one year under the provisions of this section shall not exceed 15 mills on each dollar of said valuation.

SECTION 11

BONDING

Enacted: 1952

Amended: 1956, 1965, 1988

Section 11. For the purpose of raising money to carry out any of the provisions of this act, the district is hereby au­thorized and empowered to issue bonds under its cor­porate name and seal or a facsimile of such seal, bear­ing not more than twelve per cent (12%) interest per annum. The bonds of each issue shall mature in annual installments of principal, the first installment to be not later than four (4) years and the last installment not later than forty (40) years after the date of the bonds. No install­ment of principal of any issue shall exceed the next prior installment by more than eight per cent (8%), except that any installment of principal may be increased so as to equal a multiple of five thousand dollars ($5,000.00), and except that this limita­tion shall not apply to any installment payable in less than five (5) years from the date of the bonds. Bonds shall be sold at not less than par and accrued interest.

No purchaser of any bonds or notes issued hereun­der shall be in any way responsible for the proper ap­plication of the proceeds derived from the sale thereof.

Bonds and notes may be issued hereunder without obtaining the consent of any commission, board or agency of the state and without any other proceedings, or the happening of any other condition or thing than those proceedings, conditions and things which are spe­cifically required by this act.

Bonds may be issued hereunder for the purpose of refunding any bonds heretofore or hereafter issued by the district either at maturity or upon redemption prior to maturity, with or without premium. Such bonds may be issued not more than five years prior to the applicable maturity or redemption date as may be determined by the administrative board to be in the best interests of the district.

The bonds shall be obligatory upon the district in the same manner and to the same extent as other debts lawfully contracted by the district. Subject to the limitation contained in section 10, the district shall annually levy taxes in sufficient amount to meet all ex­penses of the district, including, without limiting this or any other provision of the district charter, principal and interest on its bonds and notes, to the extent that funds therefore are not otherwise provided.

The district may also authorize its treasurer to raise money by the issue of interest bearing or discounted notes. Such notes may be issued in anticipation of the authorization or issue of bonds, or in anticipation of the receipt of federal aid for the purposes of this act or to meet current expenses, including installments of principal and interest on bonds. The amount of notes issued in anticipation of federal aid for any purpose shall not exceed the amount of the available federal aid as estimated by the board. The amount of notes issued in any fiscal year to meet current expenses shall not exceed such current expenses as estimated by the board.

Notes issued hereunder in anticipation of bonds or federal aid shall be payable within three (3) years from their dates and notes issued hereunder to meet current expenses shall be payable within one (1) year from their dates, but 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 hereunder, provided the period from the date of an original note to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed the applicable period prescribed above.

Notes may be secured by resolution, indenture or trust agreement as provided below in the case of bonds, and references in the following paragraph to bonds and bondholders shall be deemed to include notes and noteholders. A resolution, indenture or trust agreement securing bonds or notes of the district need not be filed or recorded except in the records of the district, which are hereby declared to be public records. In addition to

the matters mentioned in the following paragraph any such resolution, indenture or trust agreement may contain such provisions for protection and enforcing the rights, security and remedies of the bondholders or noteholders as may be reasonable and proper and not in violation of law.

To secure the payment of such bonds the administrative board may, either by resolution or by an indenture or trust agreement authorized by resolution, with or without a bank as trustee for the benefit of the holders of such bonds, make such provisions as the administrative board may determine, which shall constitute a part of the contract between the district and the bondholders, as to (a) the pledge, application, custody, deposit, use and disposition of the gross revenues from the district's water system as it may at any time exist or be extended or improved, including a definition of the net revenues thereof and the method of computing the same, the proceeds of the bonds, tax revenues and any and all moneys or property at any time representing a part of such revenues or taxes, and including the establishment and maintenance of reserves from the bond proceeds or otherwise for the payment of interest during and after construction and for other purposes, (b) the water rates and other charges for the services and facilities furnished by the district's water system and the collection thereof, (c) the construction of extensions and improvements of the district's water system and the operation, insurance, maintenance and repair of such system, (d) bonds to be subsequently authorized and issued in connection with such system and the terms, provisions and limitations applicable thereto, (e) the payment and redemption at or prior to maturity of the bonds authorized by this act, (f) the manner of disbursement of the funds of the district, the bonding of its officers and employees, and the auditing of its accounts, (g) the rights, powers and duties of the district, the trustee (if any) and the bondholders and (h) subsequent amend­ments of such provisions. The administrative board shall have the power and the duty on behalf of the dis­trict to perform the obligations imposed on the district by such resolution, indenture or trust agreement, includ­ing the establishment of water rates and charges as pro­vided therein. Any pledge made pursuant to this act shall be effective from the time the pledge is made, and any money or property pledged pursuant to this act shall be subject to such pledge immediately without physical delivery or appropriation or separation thereof from other money or property. No subsequent legislation shall impair the rights or remedies of the bondholders or the power of the district to acquire the means for the payment of the bonds or to perform all its contracts, covenants and other obligations entered into pursuant to this act.

SECTION 12

PENALTIES

Enacted: 1952

Amended: 1989

Section 12. Said district at any meeting shall have the power to enact by‑laws for the protection of water pipes, hydrants, safety valves, water gates or other apparatus or property of or in said district and used for the purposes provided for in this act, and for any breach of such bylaw may provide for a penalty to be assessed by the district not exceeding a fine of five hundred dollars ($500.00) or in lieu thereof, an amount equal to the actual cost of repair, replacement and/or inspection resulting from such breach, plus an additional one and one‑half times the actual cost to cover the overhead and other related expenses of said district, to be recovered for the use of said district. The district may further provide that, if the penalty or charge is not paid by the appointed time, the penalty or charge be increased by way of percentage on the penalty or charge not exceeding 12% per annum as it shall deem necessary to the district to insure punctual payment, which penalty or charge and interest may be enforced by prosecuting the person(s) in breach of said bylaw(s) on a civil complaint of any member of the Administrative Board of said district before any court of competent jurisdiction.

SECTION 13

TAMPERING

Enacted: 1952

Amended: 1989

Section 13. If any person shall maliciously or wantonly destroy or injure any hydrant, pipe, aqueduct, conduit, machinery, equipment, appliance or other property of or in said district used for the pur­pose provided in this act, such person and his aiders and abettors, shall each forfeit to said district to be recovered by an action of trespass on the case, treble the amount of damages which shall appear to have been sustained thereby, and shall also be liable to indictment therefor, and upon conviction shall be fined not more than one thou­sand dollars ($1,000.) or imprisoned not more than one (1) year, or shall suffer both such fine and imprisonment.

SECTION 13A

USE OF TREASURY

Enacted: 1965

Section 13A. With the approval of the board, the treasurer may apply funds in the treasury of the district for capital purposes in anticipation of the authorization or issue of bonds hereunder or in anticipation of the receipt of federal aid. The amount so applied in anticipation of federal aid for any purpose shall not exceed the amount of the available federal aid as estimated by the board. Advances from the treasury under this section shall be repaid without interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal assistance.

SECTION 13B

INVESTMENT OF FUNDS

Enacted: 1965

Section 13B. Subject to the provisions of any applicable resolution, indenture or trust agreement, funds of the district, pending their expenditure, may be deposited or invested by the treasurer in demand deposits, time deposits or savings deposits in banks which are members of the Federal Deposit Insurance Corporation (without regard to the limit of insurance) or in obligations issued or guaranteed by the United States of America or any agency or instrumentality thereof or by the state of Rhode Island or as may be provided in any other applicable law of the state of Rhode Island. In exercising any discretion under this section, the treasurer shall be governed by any instructions adopted by the board.

SECTION 13C

VALIDITY OF BONDS & NOTES

Enacted: 1965

Section 13C. Any bonds or notes issued under the provisions of this act and coupons on any bonds, if properly executed by officers of the district in office on the date of execution, shall be valid and binding according to their terms notwithstanding that before the delivery thereof and payment therefor any or all of such officers for any reason have ceased to hold office.

SECTION 13D

FEDERAL ADVANCES AND GRANTS

Enacted 1965

Section 13D. The district is authorized to apply for, contract for and expend any federal survey or planning advances or other grants or assistance which may be available for the purposes of this act. To the extent of any inconsistency between this act or any other law of this state and any applicable federal law or regulation, the latter shall prevail. Federal survey or planning advances, with interest where applicable, whether contracted for prior to or after the effective date of this section, may be repaid from the proceeds of bonds or notes or otherwise as a cost of the project or projects involved.

MISCELLANEOUS SECTION 8

REDEMPTION OF EXISTING BONDS

Enacted: 1965

Section 8. Redemption of existing bonds. The Ports­mouth water and fire district may at any time deposit with the trustee under its existing bond resolution a sum sufficient, with amounts then on deposit, including the debt service reserve fund, to purchase direct obli­gations of the United States of America which shall be adequate to pay the entire principal amount of the bonds secured by the resolution, together with the in­terest to maturity or to an applicable redemption date specified by the district to the trustee and any applic­able redemption premium. Or the district may deposit direct obligations of the United States of America in lieu of money for their purchase. Such obligations shall be deemed adequate if the principal and interest payable thereon are sufficient to pay the sums mentioned above when due. Upon any such deposit of money and a request by the district, the trustee shall purchase such direct obligations of the United States of America. When adequate direct obligations of the United States of America are held by the trustee pur­suant to this section, the bond resolution shall cease to be in effect. Such obligations and the proceeds thereof shall be held in trust for the benefit of the bond­holders and the trustee shall, on behalf of the district, call bonds for redemption on the applicable redemp­tion date specified pursuant to this section. Any com­pensation or expenses of the trustee in carrying out this section shall be paid by the district and any sur­plus funds held by the trustee under this section shall be remitted by the trustee to the district.

MISCELLANEOUS SECTION 9

TAXES IN ADDED TERRITORY

Enacted: 1965

Section 9. Taxes in added territory. Taxes shall be assessed throughout the district as enlarged by section 1 of this act for the fiscal years beginning with the fiscal year running from May 1, 1965 to April 30, 1966.

MISCELLANEOUS SECTION 10

EXISTING BY-LAWS TO REMAIN

Enacted: 1965

Section 10. Existing bylaws. Any existing bylaws, rules, regulations and rates of the district shall remain in effect, to the extent consistent with this act, until amended or rescinded pursuant to the district charter as amended by this act.

MISCELLANEOUS SECTION 11

CONSTITUTIONALITY

Enacted: 1965

Section 11. Interpretation. This act and the district charter as amended by this act shall be construed in all respects so as to meet all constitutional require­ments. In carrying out the purposes and provisions of this act and of the district charter, all steps shall he taken which are necessary to meet constitutional or other legal requirements whether or not such steps are expressly required by statute. If, after the application of the foregoing provisions of this section, any of the provisions of this act, or of the district charter, or their application to any circumstances, shall be held unconstitutional by any court of competent jurisdic­tion, such decision shall not affect or impair the valid­ity of the application of such provisions to other cir­cumstances or the validity of any of the other provi­sions of this act or of the district charter.

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