§ 24-12-40B. Certain bonds guaranteed by state.
(a) The authority is hereby authorized to provide by resolution for the issuance at one
time or from time to time of bonds of the authority in an aggregate principal amount
not exceeding seventeen million five hundred thousand dollars ($17,500,000) for paying
a part of the cost of the Newport Bridge; the bonds shall be designated "Newport Bridge
bonds — Guaranteed by the state,â€� and shall mature in such annual instalments, the
first of which shall be made payable not earlier than five (5) years after the date
of the bonds and the last of which shall be made payable not later than fifty (50)
years after the date of the bonds, as may be determined by the authority with the
approval of the general treasurer. The bonds shall be dated, shall bear interest at
such rate or rates not exceeding six percent (6%) per annum and shall be made redeemable
before maturity, at the option of the authority, at the price or prices and under
such terms and conditions as may be fixed by the authority prior to the issuance of
the bonds. The principal of and the interest on the bonds shall be payable at the
office of the general treasurer, or at the option of the holder, at any bank or trust
company within or without the state. The bonds shall be sold by the authority at public
sale upon a call for sealed bids to be received at the office of the general treasurer
in the city of Providence; the authority shall cause a notice of the sale to be published
at least once at least fourteen (14) days before the date fixed for the receipt of
bids in a daily newspaper of general circulation published in the city of Providence
and in a daily newspaper of a general circulation or a financial journal published
in New York City and devoted primarily to the subject of state, county, and municipal
bonds; but no sale shall be made at less than par and accrued interest. The proceeds
of the bonds shall be deposited to the credit of a special construction fund and applied
by the authority to the payment of the cost of the Newport Bridge. The authority is
further authorized, subject to the approval of the general treasurer, to provide by
resolution for the issuance of bonds of the authority for the purpose of refunding
any bonds then outstanding which shall have been issued under the provisions of this
paragraph. The issuance of the bonds and the maturities and other details thereof
shall be governed by the foregoing provisions of this subsection insofar as this chapter
may be applicable. The state hereby guarantees the payment of the principal of and
interest on all bonds issued under the provisions of this subsection as the bonds
respectively become due and payable and the full faith and credit of the state are
hereby pledged for the payment, and a statement to that effect shall be endorsed on
the bonds by the general treasurer.
(b) The revenue bonds issued under the provisions of this chapter for paying the balance
of the cost of the Newport Bridge, which revenue bonds, together with the bonds issued
under the provisions of subsection (a) and other revenue bonds, if any, issued under
the provisions of § 24-12-21 shall not exceed an aggregate principal amount of forty-seven million five hundred
thousand dollars ($47,500,000) and shall mature at such time or times, not exceeding
fifty (50) years from their date, as may be determined by the authority. Prior to
the issuance of the bonds authorized to be issued under the provisions of the first
subsection of this section, or the revenue bonds, if any, issued under the provisions
of § 24-12-21, or the revenue bonds issued for paying the balance of the cost of the Newport Bridge,
the authority shall determine the respective amounts which are to be deposited in
each fiscal year to the credit of a special fund for the payment of the interest on
and the principal of the bonds and to create a reserve for such purpose, and also
to provide a fund for accelerating the maturity or maturities of the bonds (the amounts
being hereinafter collectively called the "Principal and interest requirements for
the bonds�).
(c) Notwithstanding any of the foregoing provisions of this chapter, the authority is
hereby authorized and directed to combine the Newport Bridge and the Mount Hope Bridge
for financing purposes and to fix, revise, charge and collect tolls for the use of
the Newport Bridge and the Mount Hope Bridge, which tolls and all other revenues derived
from the Mount Hope Bridge and the Newport Bridge, except such part thereof as may
be necessary to pay the cost of maintenance, repair, and operation and to provide
the reserves therefor as may be provided for in the resolution authorizing the issuance
of the bonds or in the trust agreement securing the bonds, shall be set aside at such
regular intervals as may be provided in the resolution or the trust agreement and
deposited to the credit of the following funds in the following order, until the bonds
shall have been paid or adequate provisions shall have been made for their payment:
(1) To the credit of a special fund for paying the interest on and the principal of the
revenue bonds issued under the provisions of subsection (a) of § 24-12-18 and the revenue bonds, if any, issued under the provisions of § 24-12-21, such amount as may be required to make the amount deposited in the then current
fiscal year to the credit of the fund equal to the principal and interest requirements
of such bonds in such fiscal year;
(2) To the credit of a special fund for the payment of the interest on and the principal
of the bonds issued under the provisions of subsection (a), the amount as may be required
to make the amount deposited in the then current fiscal year to the credit of the
fund equal to the total amount of the principal of and the interest on the bonds which
is payable in the fiscal year; and
(3) To the credit of the special fund referred to in subsection (c)(1), the balance, if
any, of the revenues; provided, however, that if the amount so deposited to the credit
of the special fund referred to in subsection (c)(1) or to the credit of the special
fund referred to in subsection (c)(2), in any fiscal year shall be less than the required
amount, the requirement therefor shall nevertheless be cumulative and the amount of
any deficiency in any fiscal year shall be added to the amount otherwise required
to be deposited in each fiscal year thereafter until such time as all deficiencies
shall have been made up.