Connecticut General Statutes
Chapter 117 - Municipal Deficit Financing
Section 7-564. - Rights and remedies of holders of general obligations.

The holders of general obligations for the benefit of whom the property tax intercept procedure and debt service payment fund is established shall have, in addition to all other rights and remedies under law, the following rights and remedies subject to the terms and conditions of the applicable indenture or agreement with the trustee:

(1) In the event the municipality shall fail or refuse to comply with the indenture or agreement with the trustee or shall default in any contract made with the holders of such general obligations, the holders of twenty-five per cent in aggregate principal amounts of such then outstanding obligations, by instrument or instruments filed with the trustee and proved or acknowledged to the satisfaction of the trustee may cause the trustee to take action for the purposes provided for in sections 7-560 to 7-579, inclusive.
(2) Such trustee may, upon written request of the holders of twenty-five per cent in principal amount of such general obligations then outstanding, in its own name, exercise all or any of the powers of any such holders including: (A) By mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the holders of such general obligations, including requiring the municipality to carry out the provisions of any contract with the holders or any indenture or agreement with the trustee and to perform its duty thereunder; (B) bring suit upon such general obligations; and (C) by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such obligations.
(3) Such trustee shall have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth in sections 7-560 to 7-579, inclusive, or incident to the general representation of the holders of such general obligations of such issue in the enforcement and protection of their rights.
(4) The Superior Court shall have jurisdiction of any suit, action or proceeding by or on behalf of the holders of obligations. The venue of such suit, action or proceeding shall be the judicial district in which such municipality is located.
(P.A. 93-421, S. 5, 22; May 25 Sp. Sess. P.A. 94-1, S. 8, 130; June Sp. Sess. P.A. 17-2, S. 353.)
History: P.A. 93-421 effective July 1, 1993; May 25 Sp. Sess. P.A. 94-1 made technical change, effective July 1, 1994; June Sp. Sess. P.A. 17-2 deleted references to Sec. 7-394b(a), effective October 31, 2017.

Structure Connecticut General Statutes

Connecticut General Statutes

Title 7 - Municipalities

Chapter 117 - Municipal Deficit Financing

Section 7-560. - Definitions.

Section 7-561. - Establishment of property tax intercept procedure and debt service payment fund.

Section 7-562. - Documentation for issuance of general obligations. Requirements for intercept procedures and debt service payment fund. Percentage or amount of property tax deposited in fund. Fund use.

Section 7-563. - Indenture or other agreements.

Section 7-564. - Rights and remedies of holders of general obligations.

Section 7-565. - State pledge to holders of general obligations.

Section 7-566. - Municipal petition to become a debtor.

Section 7-567. - Additional property tax to pay current year's expenses.

Section 7-568. - Issuance of deficit obligations to fund general fund deficiency. Required designation of designated tier III municipalities.

Section 7-569. - Obligation for which there is a special capital reserve fund. State Treasurer's approval.

Section 7-570. - Issuance of additional general obligations.

Section 7-571. - Establishment of special capital reserve fund to secure general obligations.

Section 7-572. - Application by tier I municipality to Secretary of Office of Policy and Management for certification or designation to issue general obligations.

Section 7-573. - Requirements for general obligations by tier I certified or designated municipality.

Section 7-574. - Application by tier II municipality to Secretary of Office of Policy and Management for certification to issue general obligations.

Section 7-575. - Requirements for general obligations by certified tier II municipalities or designated tier II, III or IV municipalities. Designation as tier III municipality for issuance of deficit obligation.

Section 7-576. - Referral of tier II municipality to Municipal Finance Advisory Commission. Three-year financial plan. Monthly reports.

Section 7-576a. - Designation as tier I municipality. Application for designation as tier I municipality. Referral to Municipal Finance Advisory Commission.

Section 7-576b. - Application by municipality to Secretary of Office of Policy and Management for designation as tier II municipality. Conditions. Referral to Municipal Accountability Review Board.

Section 7-576c. - Application by municipality to Secretary of Office of Policy and Management for designation as tier III municipality. Conditions. Notice to legislative body. Approval or rejection by legislative body. Designation by secretary. Refer...

Section 7-576d. - Municipal Accountability Review Board. Established. Membership. Terms. Vacancies. Alternates. Expenses. Responsibilities and authorities. Requirement to supply financial reports and records to board. Collective bargaining negotiatio...

Section 7-576e. - Application by municipality to Secretary of Office of Policy and Management for designation as tier IV municipality. Approval. Notice to municipal legislative body. Approval or rejection by municipal legislative body. Designation by...

Section 7-576f. - Retention of designation as tier I, II, III or IV municipality. Requirements for ending designation. Municipal Finance Advisory Commission authority to end tier I designation.

Section 7-576g. - Retention of designation as tier III or IV municipality. Requirements for ending designation.

Section 7-576h. - Property tax levy by tier II, III or IV municipality. Limitation. Exception.

Section 7-576i. - Municipal Restructuring Fund. Eligibility for funds. Submission of restructuring plan. Board monitoring of use of funds. Guidance development by secretary. Board approval of budgets. Exception.

Section 7-576j. - Contract with designated tier III or IV municipality for contract assistance. Limits. Provisions. Prohibition. Uses. Other credit support.

Section 7-577. - Attorney General to apply for writ of mandamus.

Section 7-578. - Municipal comprehensive economic development plan to increase tax base.

Section 7-579. - Definition of deficit obligation re town and city of New Haven.

Section 7-579a. - Determination of cumulative excess of expenditures and excess of estimated expenditures for certain fiscal years.