Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Any bonds issued by the city of Haverhill for the city school projects for which an exemption from the provisions of proposition two and one-half, so-called, was approved by the voters on November seventh, nineteen hundred and eighty-nine may be secured in part by state school construction grant payments held in trust under this act. Upon certification to the state treasurer by the city treasurer that the bonds, or any portion thereof, have been issued and that a trust agreement has been entered into in accordance with section two, the state treasurer shall annually pay directly to the trustee the proceeds of any applicable construction grant approved pursuant to chapter six hundred and forty-five of the acts of nineteen hundred and forty-eight. The trustee shall hold those proceeds in trust and apply them solely to pay the principal of and interest on the bonds issued by the city.
SECTION 2. In order to secure any such bonds the city treasurer, with the approval of the mayor, may appoint a corporate trustee, which may be any trust company or bank having the powers of a trust company within the commonwealth, and may execute a trust agreement in such form as they determine to be necessary or appropriate. Any funds held in trust under this act may be invested in accordance with the provisions of section fifty-four of chapter forty-four of the General Laws, and the trust agreement may provide that any investment earnings shall be applied to pay project costs, debt service on bonds issued by the city for the projects or trustee's fees and other related expenses. At least five days prior to each date on which a payment of principal or interest is due on bonds issued for the projects, the city treasurer shall deposit with the trustee the remaining amount necessary to make the payment, after taking account of all other moneys held by the trustee that are available for such purpose.
SECTION 3. This act shall take effect upon its passage.