§ 45-12-4.2 — § 45-12-4.2. Borrowing in anticipation of federal or state grants.

Rhode Island § 45-12-4.2

• Jurisdiction: Rhode Island
• Title 45: Towns and cities
• Ch. 45-12: Indebtedness of Towns and Cities

Text

§ 45-12-4.2. Borrowing in anticipation of federal or state grants.

A city or town may contract for and accept grants of federal or state aid for any purpose for which it is authorized to appropriate money. A city or town, by resolution of its city council or town council, may authorize the issue of notes in anticipation of the receipt of federal or state aid; provided, that the aid has been previously approved by the appropriate federal or state agency. The proceeds of the notes may be used only for the purpose for which the aid is granted. The amount of original notes issued under the provisions of this section may not exceed the amount of available federal or state aid as estimated by the director of finance or treasurer and are payable within three (3) years from their dates, but the principal of and interest on notes issued for a shorter period may be refunded or paid from time to time by the issue of other notes under the provisions of this section; provided, that the period from the date of an original note to the maturity of any note issued to refund or pay the same debt or the interest on that debt does not exceed three (3) years. To the extent that the state or federal aid actually received is insufficient to pay the principal and interest on those notes, the city or town shall appropriate a sum sufficient to make the payments.

Legislative History

P.L. 1977, ch. 222, § 1; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.