Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The proceeds of grants made pursuant to chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight for the Robert E. Frost and North Lawrence elementary school construction or re-construction projects in the city of Lawrence, to the extent disbursed to said city and not otherwise expended by said city, shall be paid by the treasurer of said city, and to the extent remaining to be disbursed to said city on or after the effective date of this act, by the state treasurer, to the trustee appointed in accordance with section four and shall be held in trust and applied by said trustee in accordance with the provisions of the trust agreement entered into pursuant to said section four, which may require such application, without limitation, to pay principal and interest on the bonds issued by the city for said projects, principal and interest on any notes issued in anticipation of said bonds, and premiums, fees or charges for trust or credit enhancement facilities or services issued or rendered to said city in accordance with agreements entered into pursuant to sections four or five, all of which shall be eligible costs of the projects for all purposes of the grants and of chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight. The annual payments provided for by the terms of said grants shall be paid to the trustee on the first day in May of each year commencing in nineteen hundred and eighty-six; provided, however, that if such first day of May is a Saturday, Sunday or legal holiday, said grants shall be paid on the next day which is not a Saturday, Sunday or legal holiday.
SECTION 2. At least fifteen days prior to each due date for a payment of principal or interest on bonds or notes issued by said city of Lawrence for the projects, or for a payment with respect to trust or credit enhancement facilities or services pursuant to sections four or five, the treasurer of said city shall deposit with the trustee the amount necessary to make such payment, after taking into account all other monies held by the trustee that are available for that purpose.
SECTION 3. Pending their use in accordance with applicable contract or other requirements, the proceeds of the bonds or notes issued by said city of Lawrence for each project shall be segregated from all other funds and accounts of said city and shall be held in trust by said trustee.
SECTION 4. Any funds to be held in trust under the provisions of this act shall be deposited for the account of the city of Lawrence with a corporate trustee, which may be any trust company or bank having the powers of a trust company within the commonwealth. The treasurer of said city, with the approval of the mayor, shall appoint the trustee, and shall execute a trust agreement in such form as they may determine to be necessary or appropriate. Any such funds held in trust may be invested in accordance with section fifty-four of chapter forty-four of the General Laws, but unless otherwise provided in the trust agreement any investment earnings shall be paid into the general fund of said city of Lawrence immediately upon receipt.
SECTION 5. In addition to other security provided herein or otherwise by law, bonds or notes issued by said city of Lawrence for said projects may be secured in whole or in part by insurance, or by letters or lines of credit or other credit facilities issued to said city by any bank, trust company or other financial institution. In connection therewith the treasurer of said city with the approval of the mayor, may enter into agreements with insurers, banks, or other financial institutions within or without the commonwealth and any such agreement may include covenants and provisions for protecting and enforcing the rights, security and remedies of the insurers or lenders as, in the discretion of said treasurer, may be reasonable and proper.
SECTION 6. This act shall take effect upon its passage.