§ 45-12-5. Sale of evidences of indebtedness — Annual payments — Terms.
(a) A city or town which has authorized the borrowing of money under the provisions of
this chapter may sell the bonds, notes, or other evidence of the indebtedness authorized
at public or private sale, or may use these in payment of its debts. The bonds of
each issue may be issued in the form of serial bonds or term bonds or a combination
thereof and shall be payable either by maturity of principal in the case of serial
bonds or by mandatory serial redemption in the case of term bonds, in annual installments
of principal, the first installment to be not later than five (5) years and the last
installment not later than thirty (30) years, after the dated date of the bonds. All
such bonds of a particular issue may be issued in the form of zero coupon bonds, capital
appreciation bonds, serial bonds or term bonds or a combination thereof. Annual installments
of principal may be provided for by maturity of principal in the case of serial bonds
or by mandatory serial redemption in the case of term bonds. The amount of principal
appreciation each year on any bonds, after the date of original issuance, shall not
be considered to be principal indebtedness for the purposes of any constitutional
or statutory debt limit or any other limitation. The appreciation of principal after
the date of original issue shall be considered interest. Only the original principal
amount shall be counted in determining the principal amount so issued and any interest
component shall be disregarded.
(b) The manner of sale, denominations, maturities, interest rates and the uses of the
proceeds thereof (including, but not limited to, the costs of issuance and capitalized
interest) and other terms, conditions, and details of any bonds, notes or other evidence
of indebtedness issued under this section may be fixed by the ordinance or resolution
of the city or town council authorizing the issue or by separate resolution of the
city or town council or, to the extent provisions for these matters are not so made,
they may be fixed by the officers authorized to sign the bonds, notes or other evidence
of indebtedness. The officers authorized to sign the bonds, notes or other evidence
of indebtedness on behalf of the city or town are authorized to execute such instruments,
documents or other papers as they deem necessary or desirable to effectuate the issuance
of the bonds, notes or other evidence of indebtedness and are also authorized to take
all actions and execute all documents or agreements necessary to comply with federal
tax and securities laws, including rule 15c2-12 of the Securities and Exchange Commission
or any similar rule or regulation now or hereafter adopted by the Securities and Exchange
Commission, which documents or agreements may have a term coextensive with the maturity
of the bonds, notes or other evidence of indebtedness authorized hereby and to execute
and deliver a continuing disclosure agreement or certificate in connection with the
bonds, notes or other evidence of indebtedness.
(c) Pending any authorization or issue of bonds hereunder or pending or in lieu of any
authorization or issue of notes hereunder, the city or town council, to the extent
that bonds or notes may be issued hereunder, may, by resolution apply funds in the
treasury of the city or town to the purposes for which bonds or notes will be issued,
such advances to be repaid without interest from the proceeds of bonds or notes subsequently
issued or from the proceeds of applicable federal or state assistance or from other
available funds.
(d) Any accrued interest received upon the sale of bonds or notes hereunder shall be applied
to the payment of the first interest due thereon. Any premium arising from the sale
of bonds or notes hereunder shall, in the discretion of the finance director or treasurer,
be applied to the cost of preparing, issuing and marketing bonds or notes hereunder
to the extent not otherwise provided, to the payment of project costs, to the payment
of the principal of or interest on bonds or notes issued hereunder or to any one or
more of the foregoing. The cost of preparing, issuing and marketing bonds or notes
hereunder may also, in the discretion of the finance director or treasurer, be met
from bond or note proceeds exclusive of premium and accrued interest or from other
moneys available therefor. Any balance of bond or note proceeds remaining after payment
of the cost of the project and the cost of preparing, issuing and marketing bonds
or notes hereunder shall be applied to the payment of the principal of or interest
on bonds or notes issued hereunder. To the extent permitted by applicable federal
laws, any earnings or net profit realized from the deposit or investment of funds
may, upon receipt, be added to and dealt with as part of the revenues of the city
or town from property taxes. In exercising any discretion under this section, the
finance director or treasurer shall be governed by any instructions adopted by resolution
of the city or town council.