§ 45-37.1-6 - Bonds and notes of the corporation.
SECTION 45-37.1-6
§ 45-37.1-6 Bonds and notes of thecorporation. – (a) The corporation is authorized to issue its negotiable revenue bonds andnotes from time to time for any of its corporate purposes. All bonds and notesissued by the corporation are payable solely out of the revenues and receiptsderived from the leasing or sale by the corporation of its projects or of anythereof, or from any other financing arrangement with respect thereto, as maybe designated in the proceedings of the corporation under which the bonds ornotes are authorized to be issued. The bonds and notes may be executed anddelivered by the corporation at any time and, from time to time, may be in aform and denominations and of a tenor and maturities, may be in bearer form orin registered form, as to principal and interest or as to principal alone, maybe payable in installments and at a time or times may be payable at placeswhether within or without the state, may bear interest at a rate or ratespayable at a time or times and at a place or places and evidenced in a manner,and may contain provisions not inconsistent herewith, all as are provided inthe proceedings of the corporation under which the bonds are authorized to beissued; provided, however, that bonds of the corporation are payable not morethan forty (40) years from their date of issue and notes are payable not morethan ten (10) years from their date of issue. If deemed advisable by thecorporation, there may be retained in the proceedings, under which any bonds ornotes of the corporation are authorized to be issued, an option to redeem allor any part of the bonds or notes as may be specified in the proceedings, at aprice or prices and after notice or notices and on terms and conditions as maybe stated in the proceedings and as may be recited on the face of the bonds ornotes, but nothing herein contained shall be construed to confer on thecorporation any right or option to redeem any bonds or notes, except as may beprovided in the proceedings under which they are issued. Any bonds or notes ofthe corporation may be sold at a price or prices, at public or private sale, ina manner and, from time to time, as may be determined by the corporation, andthe corporation may pay all expenses, premiums, and commissions which it maydeem necessary or advantageous in connection with their issuance and sale. Anymoneys of the corporation, including proceeds from the sale of any bonds ornotes, and revenues, receipts, and income from any of its projects, may beinvested and reinvested in obligations, securities, and other investments thatare provided in the resolution or resolutions under which the bonds or notesare authorized.
(b) Issuance by the corporation of one or more series ofbonds or notes for one or more purposes shall not preclude it from issuingother bonds or notes in connection with the same project or any other projects,but the proceedings, whereunder any subsequent bonds or notes may be issued,shall recognize and protect any prior pledge or mortgage made for any priorissue of bonds or notes, unless in the proceedings authorizing the prior issue,the right is reserved to issue subsequent bonds or notes on a parity with theprior issue.
(c) Without limiting the generality of the preceding, thecorporation may issue its bonds or notes to finance any industrial facilitieswhich may have been initiated by the Rhode Island industrial facilitiescorporation prior to February 27, 1967, and without regard to the stage ofcompletion of any of the industrial facilities.
(d) The corporation is authorized to provide for the issuanceof its revenue bonds or notes for the purpose of refunding any revenue bonds ornotes of the corporation then outstanding, including the payment of anyredemption premium on the bonds or notes and any interest accrued or to accrueto the earliest or subsequent date of redemption, purchase, or maturity of therevenue bonds or notes, and, if deemed advisable by the corporation, for theadditional purpose of paying all or any part of the cost of constructing andacquiring additions, improvements, extensions, or enlargements of a project orany portion of it.
(e) The proceeds of the revenue bonds or notes issued for thepurpose of refunding outstanding revenue bonds or notes may, in the discretionof the corporation, be applied to the purchase or retirement at maturity orredemption of the outstanding revenue bonds or notes either on their earliestor any subsequent redemption date, and may, pending the application, be placedin escrow to be applied to the purchase or retirement at maturity or redemptionon a date that may be determined by the corporation.
(f) The escrowed proceeds, pending that use, may be investedand reinvested in obligations of or guaranteed by the United States of America,or in certificates of deposit or time deposits secured by direct obligations ofor guaranteed by the United States of America, maturing at an appropriate timeor times to assure the prompt payment, as to principal, interest, andredemption premium, if any, on the outstanding revenue bonds or notes to berefunded. The interest, income, and profits, if any, earned or realized on anyinvestment may also be applied to the payment of the outstanding revenue bondsor notes to be refunded. After the terms of the escrow have been fullysatisfied and carried out, any balance of the proceeds and interest, income andprofits, if any, earned or realized on the investments, may be returned to thecorporation for use by it in any lawful manner. The portion of the proceeds ofany revenue bonds or notes issued for the additional purpose of paying all orany part of the cost of constructing and acquiring additions, improvements,extensions, or enlargements of a project may be invested and reinvested inobligations of or guaranteed by the United States of America, or incertificates of deposit or time deposits secured by direct obligations of orguaranteed by the United States of America, maturing not later than the time ortimes when proceeds will be needed for the purpose of paying all or any part ofthe cost. The interest, income and profits, if any, earned or realized on theinvestments may be applied to the payment of all or any part of that cost ormay be used by the corporation in any lawful manner.
(g) All the revenue bonds or notes shall be issued andsecured and shall be subject to the provisions of this chapter in the samemanner and to the same extent as any other revenue bonds and notes issuedpursuant to this chapter. All revenue bonds and notes authorized under thissection and the interest coupons if any, applicable thereto, are hereby madeand shall be construed to be negotiable instruments.
(h) Money borrowed by the corporation for the purpose ofproviding temporary financing of a project or projects or combination ofprojects pending the issuance of bonds or other notes shall be evidenced bynotes or other obligations. The principal and interest of all notes or otherobligations of the corporation so issued under the provisions of this sectionare payable from the following:
(1) From the proceeds of bonds subsequently issued; or
(2) From the proceeds of subsequent borrowings which complywith the provisions of this section.
(i) Notwithstanding any other provisions of this chapter, allof these notes are deemed to be negotiable instruments under the laws of thestate subject only to the provisions for registration contained therein. Thenotes or other obligations or any issue of them shall be in a form and containany other provisions that the corporation may determine, and the notes orresolutions or proceedings authorizing the notes or other obligations or anyissue of them may contain, in addition to any provisions, conditions,covenants, or limitations which the corporation is authorized to include in anyresolution or resolutions authorizing bonds or notes or on any trust indenturerelating to them. The corporation may issue notes or other obligations in amanner, either publicly or privately, on terms that it may determine to be inits best interests. The notes or other obligations may be issued under theprovisions of this chapter without obtaining the consent of any department,division, commission, board, body, or agency of the state, without any otherproceedings or the happening of any conditions or things other than thoseproceedings, conditions, or things which are specifically required by thischapter and by the provisions and resolutions authorizing the issuance of thenotes or obligations.