§ 45-50-14. Revenue bonds.
(a) The authority is authorized to provide by resolution for the issuance, at one time,
or from time to time, of revenue bonds of the authority for the purpose of paying
all or a part of the cost of any one or more projects, the construction or acquisition
of which is authorized by this chapter. The principal of and the interest on the bonds
shall be payable from the funds provided for payment. The bonds of each issue shall
be dated, bear interest at a rate or rates that the authority determines, payable
from time to time, shall mature at a time or times not exceeding forty (40) years
from their date or dates, as may be determined by the authority, and may be redeemable
before maturity, at the option of the authority, at a price or prices and under terms
and conditions as may be fixed by the authority prior to the issuance of the bonds.
The authority shall determine the form of bonds, including any interest coupons to
be attached to them, and shall fix the denomination or denominations of the bonds
and the place or places of payment of the principal and interest, which may be at
any bank or trust company within or without the state. The bonds shall be signed by
the chairperson of the authority or a facsimile shall be impressed or imprinted on
the bonds and attested by the manual or facsimile signature of the secretary of the
authority, and any coupons attached to the bonds shall bear the facsimile signature
of the chairperson of the authority. In case any officer, whose signature or facsimile
of whose signatures appears on any bonds or coupons, ceases to be an officer before
the delivery of the bonds, the signature or the facsimile is nevertheless valid and
sufficient for all purposes the same as if he or she had remained in office until
the delivery. The bonds may be issued in coupon or in registered form, or both, as
the authority may determine, and provision may be made for the registration of any
coupon bonds as to principal alone, and also as to both principal and interest, for
the reconversion into coupon bonds of any bonds registered and coupon bonds. The authority
may sell bonds in a manner, either at public or private sale, and for a price that
it may determine will best effect the purposes of this chapter.
(b) The proceeds of the bonds of each issue shall be used for the payment of the cost
of the project or projects for which the bonds have been issued, and shall be disbursed
in a manner and under restrictions, if any, that the authority may provide in the
resolution authorizing the issuance of the bonds or in the trust agreement securing
the bonds. If the proceeds of the bonds of any issue, by error of estimates, are less
than the cost, additional bonds may in the same manner be issued to provide the amount
of the deficit, and, unless otherwise provided in the resolution authorizing the issuance
of the bonds or in the trust agreement securing the bonds, are deemed to be of the
same issue and are entitled to payment from the same fund without preference of priority
of the bonds first issued. If the proceeds of the bonds of any issue exceed the cost,
the surplus shall be deposited to the credit of the sinking fund for the bonds, or
may be applied to the payment of the cost of any project financed under the provisions
of this chapter.
(c) Prior to the preparation of definitive bonds, the authority may, under like restrictions,
issue interim receipts or temporary bonds, with or without coupons, exchangeable for
definitive bonds when definitive bonds have been executed and are available for delivery.
The authority may also provide for the replacement of any bonds which become mutilated
or are destroyed or lost. Bonds, other than school housing bonds pursuant to chapter 7 of title 16, may be issued under the provisions of this chapter without obtaining the consent
of any department, division, commission, board, bureau, or agency of the state, and
without any other proceedings or the happening of any other conditions, or things,
than those proceedings, conditions, or things which are specifically required by this
chapter. All bonds, notes and other forms of indebtedness, other than interim finance
mechanisms, issued in support of school housing projects shall require passage of
an enabling act by the general assembly.
(d) However, in no event shall the authority borrow in principal amount for any one bond
issue more than fifteen percent (15%) of the total of the most recent adopted municipal
budget. In addition, the total outstanding principal amount of bonds of the authority
shall not exceed fifty percent (50%) of the most recent adopted municipal budget;
provided, however, that there shall not be included in the calculation of this limitation
fifty percent (50%) of the outstanding principal amount of any bonds issued for projects
for which the authority or the municipality receives school housing aid pursuant to
§§ 16-7-44 and 16-7-41.