§ 35-8-26. Refunding bonds.
(a) When bonds or notes have been issued as provided in this chapter, the general treasurer
shall be authorized and empowered hereby, with the approval of the governor and in
accordance with this chapter, to issue, from time to time, refunding bonds or notes
of the state to refund any of such outstanding bonds or notes as may be specified
from time to time by the governor provided that the outstanding amount of debt on
account of any project shall not be increased thereby to an amount in excess of the
amount approved for such project by the people.
(b) If the people s
Free access — add to your briefcase to read the full text and ask questions with AI
§ 35-8-26. Refunding bonds.
(a) When bonds or notes have been issued as provided in this chapter, the general treasurer
shall be authorized and empowered hereby, with the approval of the governor and in
accordance with this chapter, to issue, from time to time, refunding bonds or notes
of the state to refund any of such outstanding bonds or notes as may be specified
from time to time by the governor provided that the outstanding amount of debt on
account of any project shall not be increased thereby to an amount in excess of the
amount approved for such project by the people.
(b) If the people shall have approved the issuance of refunding bonds or notes, at the
election at which the incurring of debt for the respective project or projects was
approved or as a separate approval at another time, the proceeds of the refunding
bonds or notes, exclusive of any premium or accrued interest thereon, shall upon receipt
be applied to retire the bonds or notes being refunded or shall be deposited by the
general treasurer with an escrow agent, which may be the paying agent for the bonds
being refunded, in trust for application to payment of such bonds or notes at maturity
or upon earlier call. Such escrowed amounts shall be invested for the benefit of the
owners of the refunded bonds or notes and shall be invested only in direct or guaranteed
obligations of the United States of America or the state of Rhode Island. Money held
in escrow, together with the earnings thereon, shall be applied to any principal,
interest and early redemption premiums, if any, to the owners of the refunded bonds
or notes, in accordance with the instructions of the general treasurer included in
the terms of the escrow. An amount of bonds or notes being refunded, which is the
largest amount of such bonds or notes for which the escrowed deposit will provide
sufficient funds to pay all principal, interest and early redemption premiums, if
any, when due, will be considered no longer outstanding and not debts of the state
for the purpose of determining the amount of debt outstanding for the respective project
or projects from and after the deposit of funds into escrow.
(c) If the people have not approved the issuance of refunding bonds or notes as aforesaid,
the general treasurer may nevertheless issue refunding bonds or notes as provided
herein for the purpose of paying or refunding all or any portion of an issue of bonds
or notes then outstanding, including the amount of any redemption premium and costs
of issuance related thereto; provided, however, that no such refunding bonds shall
be payable over a period longer than the period during which the original bonds or
notes so refunded must be paid pursuant to law, and provided further that the present
value of the principal and interest payments due on refunding bonds issued under this
section shall not exceed the present value of the principal and interest payments
to be paid by the state on account of bonds or notes to be refunded.