§ 45-37.1-6. Bonds and notes of the corporation.
(a) The corporation is authorized to issue its negotiable revenue bonds and notes from
time to time for any of its corporate purposes. All bonds and notes issued by the
corporation are payable solely out of the revenues and receipts derived from the leasing
or sale by the corporation of its projects or of any thereof, or from any other financing
arrangement with respect thereto, as may be designated in the proceedings of the corporation
under which the bonds or notes are authorized to be issued. The bonds and notes may
be executed and delivered by the corporation at any time and, from time to time, may
be in a form and denominations and of a tenor and maturities, may be in bearer form
or in registered form, as to principal and interest or as to principal alone, may
be payable in installments and at a time or times may be payable at places whether
within or without the state, may bear interest at a rate or rates payable at a time
or times and at a place or places and evidenced in a manner, and may contain provisions
not inconsistent herewith, all as are provided in the proceedings of the corporation
under which the bonds are authorized to be issued; provided, however, that bonds of
the corporation are payable not more than forty (40) years from their date of issue
and notes are payable not more than ten (10) years from their date of issue. If deemed
advisable by the corporation, there may be retained in the proceedings, under which
any bonds or notes of the corporation are authorized to be issued, an option to redeem
all or any part of the bonds or notes as may be specified in the proceedings, at a
price or prices and after notice or notices and on terms and conditions as may be
stated in the proceedings and as may be recited on the face of the bonds or notes,
but nothing herein contained shall be construed to confer on the corporation any right
or option to redeem any bonds or notes, except as may be provided in the proceedings
under which they are issued. Any bonds or notes of the corporation may be sold at
a price or prices, at public or private sale, in a manner and, from time to time,
as may be determined by the corporation, and the corporation may pay all expenses,
premiums, and commissions which it may deem necessary or advantageous in connection
with their issuance and sale. Any moneys of the corporation, including proceeds from
the sale of any bonds or notes, and revenues, receipts, and income from any of its
projects, may be invested and reinvested in obligations, securities, and other investments
that are provided in the resolution or resolutions under which the bonds or notes
are authorized.
(b) Issuance by the corporation of one or more series of bonds or notes for one or more
purposes shall not preclude it from issuing other bonds or notes in connection with
the same project or any other projects, but the proceedings, whereunder any subsequent
bonds or notes may be issued, shall recognize and protect any prior pledge or mortgage
made for any prior issue of bonds or notes, unless in the proceedings authorizing
the prior issue, the right is reserved to issue subsequent bonds or notes on a parity
with the prior issue.
(c) Without limiting the generality of the preceding, the corporation may issue its bonds
or notes to finance any industrial facilities which may have been initiated by the
Rhode Island industrial facilities corporation prior to February 27, 1967, and without
regard to the stage of completion of any of the industrial facilities.
(d) The corporation is authorized to provide for the issuance of its revenue bonds or
notes for the purpose of refunding any revenue bonds or notes of the corporation then
outstanding, including the payment of any redemption premium on the bonds or notes
and any interest accrued or to accrue to the earliest or subsequent date of redemption,
purchase, or maturity of the revenue bonds or notes, and, if deemed advisable by the
corporation, for the additional purpose of paying all or any part of the cost of constructing
and acquiring additions, improvements, extensions, or enlargements of a project or
any portion of it.
(e) The proceeds of the revenue bonds or notes issued for the purpose of refunding outstanding
revenue bonds or notes may, in the discretion of the corporation, be applied to the
purchase or retirement at maturity or redemption of the outstanding revenue bonds
or notes either on their earliest or any subsequent redemption date, and may, pending
the application, be placed in escrow to be applied to the purchase or retirement at
maturity or redemption on a date that may be determined by the corporation.
(f) The escrowed proceeds, pending that use, may be invested and reinvested in obligations
of or guaranteed by the United States of America, or in certificates of deposit or
time deposits secured by direct obligations of or guaranteed by the United States
of America, maturing at an appropriate time or times to assure the prompt payment,
as to principal, interest, and redemption premium, if any, on the outstanding revenue
bonds or notes to be refunded. The interest, income, and profits, if any, earned or
realized on any investment may also be applied to the payment of the outstanding revenue
bonds or notes to be refunded. After the terms of the escrow have been fully satisfied
and carried out, any balance of the proceeds and interest, income and profits, if
any, earned or realized on the investments, may be returned to the corporation for
use by it in any lawful manner. The portion of the proceeds of any revenue bonds or
notes issued for the additional purpose of paying all or any part of the cost of constructing
and acquiring additions, improvements, extensions, or enlargements of a project may
be invested and reinvested in obligations of or guaranteed by the United States of
America, or in certificates of deposit or time deposits secured by direct obligations
of or guaranteed by the United States of America, maturing not later than the time
or times when proceeds will be needed for the purpose of paying all or any part of
the cost. The interest, income and profits, if any, earned or realized on the investments
may be applied to the payment of all or any part of that cost or may be used by the
corporation in any lawful manner.
(g) All the revenue bonds or notes shall be issued and secured and shall be subject to
the provisions of this chapter in the same manner and to the same extent as any other
revenue bonds and notes issued pursuant to this chapter. All revenue bonds and notes
authorized under this section and the interest coupons if any, applicable thereto,
are hereby made and shall be construed to be negotiable instruments.
(h) Money borrowed by the corporation for the purpose of providing temporary financing
of a project or projects or combination of projects pending the issuance of bonds
or other notes shall be evidenced by notes or other obligations. The principal and
interest of all notes or other obligations of the corporation so issued under the
provisions of this section are payable from the following:
(1) From the proceeds of bonds subsequently issued; or
(2) From the proceeds of subsequent borrowings which comply with the provisions of this
section.
(i) Notwithstanding any other provisions of this chapter, all of these notes are deemed
to be negotiable instruments under the laws of the state subject only to the provisions
for registration contained therein. The notes or other obligations or any issue of
them shall be in a form and contain any other provisions that the corporation may
determine, and the notes or resolutions or proceedings authorizing the notes or other
obligations or any issue of them may contain, in addition to any provisions, conditions,
covenants, or limitations which the corporation is authorized to include in any resolution
or resolutions authorizing bonds or notes or on any trust indenture relating to them.
The corporation may issue notes or other obligations in a manner, either publicly
or privately, on terms that it may determine to be in its best interests. The notes
or other obligations may be issued under the provisions of this chapter without obtaining
the consent of any department, division, commission, board, body, or agency of the
state, without any other proceedings or the happening of any conditions or things
other than those proceedings, conditions, or things which are specifically required
by this chapter and by the provisions and resolutions authorizing the issuance of
the notes or obligations.