§ 45-12-26. Commercial agreements relating to registered bonds and notes.
In connection with the issuance by a city, town, or other political subdivision of
this state of original or replacement bonds or notes in registered form, the treasurer
of the city, town, or other political subdivision, with the approval of any other
officers authorized to sign those bonds or notes, is authorized to contract for and
engage the services of any bank, trust company, or other banking or financial institution
within or without the state to perform authentication, registration, transfer, exchange,
record, and paying agent functions, and for the preparation, signing
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§ 45-12-26. Commercial agreements relating to registered bonds and notes.
In connection with the issuance by a city, town, or other political subdivision of
this state of original or replacement bonds or notes in registered form, the treasurer
of the city, town, or other political subdivision, with the approval of any other
officers authorized to sign those bonds or notes, is authorized to contract for and
engage the services of any bank, trust company, or other banking or financial institution
within or without the state to perform authentication, registration, transfer, exchange,
record, and paying agent functions, and for the preparation, signing, and issuance
of checks in payment of those bonds or notes, the preparation and maintenance of reports
and accounts and the performance of related duties. The treasurer, with this approval,
may also enter into agreements with custodian banks, trust companies, or other financial
institutions and financial intermediaries and nominees of any of them in connection
with the establishment and maintenance by others of a central depository system for
the transfer or pledge of those bonds and notes. The agreements may provide for limitation
of liabilities of the parties, indemnification, or payment of liquidated damages,
and shall include those provisions that the treasurer may deem necessary or desirable
to protect the city, town, or other political subdivision, including provisions indemnifying
it for losses sustained by it as the result of negligence of the other party or parties
or any breach of the duties imposed upon them under the agreement.