§ 45-12-30. Securing of bonds or notes — Trust agreements.
(a) Bonds or notes issued by a city or town may be secured in whole or in part by insurance
or by letters or lines of credit or other credit facilities. This insurance, letter,
or line of credit or credit facility may provide for reimbursement to be made over
period of time, not to exceed two (2) years beyond the maturity date of the bonds
or notes secured, as the treasurer or director of finance deems proper, and may provide
for reimbursement to be made and any of these notes or bonds to be issued at a rate
or rates of interest as the treasurer or director of finance deems proper, in
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§ 45-12-30. Securing of bonds or notes — Trust agreements.
(a) Bonds or notes issued by a city or town may be secured in whole or in part by insurance
or by letters or lines of credit or other credit facilities. This insurance, letter,
or line of credit or credit facility may provide for reimbursement to be made over
period of time, not to exceed two (2) years beyond the maturity date of the bonds
or notes secured, as the treasurer or director of finance deems proper, and may provide
for reimbursement to be made and any of these notes or bonds to be issued at a rate
or rates of interest as the treasurer or director of finance deems proper, including
rates variable from time to time as determined by an index, banker's loan rate, or
other method that may be specified in the agreement or the bond or note. Notwithstanding
any contrary provision of law, bonds or notes secured as described in this section
may, in the discretion of the treasurer or director of finance, be subject to prepayment
at the option of the holder of these bonds or notes at times and prices and under
circumstances that the treasurer or director of finance specifies. For the purpose
of securing bonds and notes, a city or town, acting by its treasurer or director of
finance, may enter into a trust agreement between the city or town and a corporate
trustee which shall be a bank or trust company doing business in the state. This trust
agreement, and any remarketing or other agreements necessary or incidental to the
issuance of these bonds or notes, shall be in any form deemed proper by the treasurer
or director of finance of the city or town, and shall be executed by its treasurer
or director of finance and countersigned by its mayor or president of the town council.
It shall be lawful for any bank or trust company doing business in the state to act
as a depository or trustee under this trust agreement, and to furnish indemnification
and pledge securities that may be required by any city or town. Any trustee under
a trust agreement established pursuant to this section may bring suit upon the bonds
or notes and may, either at law or equity, by suit, action, mandamus, or other proceedings
for legal or equitable relief, enforce all rights under the laws of the state or granted
under this section or under the trust agreement, and may enforce and compel the performance
of all duties required under the trust agreement to be performed by the city or town
or by any officer of the city or town. All expenses incurred in carrying out the provisions
of this section may be treated by the city or town as a cost of issuance.
(b) The powers granted in this section are in addition to and not in substitution for
authority previously granted or subsequently granted to cities and towns or officers
on behalf of cities and towns to set the terms, conditions, or details of any bonds
or notes, including without limitation, the provision of bond insurance.