§ 16-62-9 - Bonds and notes of the authority.
SECTION 16-62-9
§ 16-62-9 Bonds and notes of theauthority. – (a) The authority shall have the power and is authorized to issue itsnegotiable bonds and notes in one or more series in any principal amounts as inthe opinion of the authority shall be necessary to provide sufficient funds forachieving its purposes, including the payment of interest on bonds and notes ofthe authority, the establishment of reserves to secure these bonds and notes,and the making of all other expenditures of the authority incident to andnecessary or convenient to carrying out its corporate purposes and powers.
(b) All bonds and notes issued by the authority may besecured by the full faith and credit of the authority, or may be payable solelyout of revenues and receipts derived from the pledge or assignment of, grant ofsecurity interest in, or sale of eligible loans or education loans owned by itor any part of it, or out of receipts upon repayment of any eligible loans oreducation loans or any part of these made to students or to parents, legalguardians, or sponsors of students, or to institutions or lenders, or upon theundisbursed proceeds of the bonds or notes, or upon guaranty payments ofprincipal and interest on eligible loans, or upon interest subsidy payments, orupon investment earnings of any of these revenues, receipts, proceeds orpayments, or upon any other form of security available to the authority forthis purpose, all as may be designated in the proceedings of the authorityunder which the bonds or notes shall be authorized to be issued. The bonds andnotes may be executed and delivered by the authority at any time, may be in anyform and denominations and of any tenor and maturities, and may be in bearerform or in registered form, as to principal and interest or as to principalalone, all as the authority may determine.
(c) Bonds may be payable in any installments, and at anytimes not exceeding forty (40) years from their date, as shall be determined bythe authority.
(d) Notes and any renewals of notes may be payable in anyinstallments and at any times not exceeding ten (10) years from the date of theoriginal issue of the notes, as shall be determined by the authority.
(e) Bonds and notes may be payable at any places, whetherwithin or without the state, may bear interest at any rate or rates payable atany time or times and at any place or places and evidenced in any manner, andmay contain any provisions not inconsistent with this section, all as shall beprovided in the proceedings of the authority under which they shall beauthorized to be issued.
(f) There may be retained by provisions made in theproceedings under which any bonds or notes of the authority are authorized tobe issued an option to redeem all or any part of these, at any prices and uponany notice, and on any further terms and conditions as shall be set forth onthe record of those proceedings and on the face of the bonds or notes.
(g) Any bonds or notes of the authority may be sold at anyprices, at public or private sale, and in any manner as shall be determined bythe authority, and the authority shall pay all expenses, premiums, andcommissions as it shall deem necessary or advantageous in connection with theissuance and sale of these.
(h) Money of the authority, including without limitationrevenues, receipts, proceeds, payments, or earnings listed in subsection (b),may be invested and reinvested in any obligations, securities, and otherinvestments consistent with the purposes of this chapter as shall be specifiedin the resolutions under which the bonds or notes are authorized.
(i) Issuance by the authority of one or more series of bondsor notes for one or more purposes shall not preclude it from issuing otherbonds or notes for the same purpose or purposes, but the proceedings where anysubsequent bonds or notes may be issued shall recognize and protect a priorpledge or mortgage made for a prior issue of bonds or notes unless in theproceedings authorizing the prior issue the right is reserved to issuesubsequent bonds or notes on a parity with that prior issue.
(j) The authority is authorized to issue bonds or notes forthe purpose of refunding its bonds or notes outstanding, including the paymentof any redemption premium on them and any interest accrued or to accrue to theearliest or subsequent date of redemption, purchase, or maturity of the bondsor notes. The proceeds of bonds or notes issued for the purpose of refundingoutstanding bonds or notes may be applied, in the discretion of the authority,to the purchase, retirement at maturity, or redemption of the outstanding bondsor notes either on their earliest or a subsequent redemption date, and may,pending that application, be placed in escrow. These escrowed proceeds may beinvested and reinvested in obligations of or guaranteed by the United States,or in certificates of deposit or time deposits or repurchase agreements, fullysecured or guaranteed by the state or the United States, or an instrumentalityof either, maturing at any time or times as shall be appropriate to assure theprompt payment, as to principal, interest, and redemption premium, if any, ofthe outstanding bonds or notes to be refunded. The interest, income, andprofits, if any, earned or realized on this investment may also be applied tothe payment of the outstanding bonds or notes to be refunded. After the termsof the escrow have been fully satisfied and carried out, any balance of theproceeds and interest, income, and profits, if any, earned or realized on theinvestments of these may be returned to the authority for use by it infurtherance of its purposes. All these bonds or notes shall be issued andsecured and shall be subject to the provisions of this chapter in the mannerand to the same extent as any other bonds or notes issued pursuant to thischapter.
(k) The directors, officers of the authority, and otherpersons executing the bonds shall not be subject to personal liability oraccountability by reason of the issuance of these.
(l) Bonds or notes may be issued under the provisions of thischapter without obtaining the consent of any department, division, commission,board, body, bureau, or agency of the state, and without any other proceedings,conditions, or things other than those proceedings, conditions, or things whichare specifically required by this chapter and by the provisions of theresolution authorizing the issuance of those bonds or notes or the trustagreement securing this.
(m) The authority, subject to any agreements with noteholdersor bondholders as may then be in force, shall have power out of any fundsavailable for this to purchase bonds or notes of the authority, which shallthen be cancelled, at a price not exceeding:
(1) If the bonds or notes are then redeemable, the redemptionprice then applicable plus accrued interest to the next interest payment date,or
(2) If the bonds or notes are not then redeemable, theredemption price applicable on the earliest date that the bonds or notes becomesubject to redemption, plus the interest that would have accrued to that date.
(n) Whether or not the bonds and notes are of the form andcharacter as to be negotiable instruments under the terms of the Rhode IslandUniform Commercial Code, title 6A, the bonds and notes are made negotiableinstruments within the meaning of and for all of the purposes of the RhodeIsland Uniform Commercial Code, subject only to the provisions of the bonds andnotes for registration.
(o) If a director or officer of the authority whose signatureappears on the bonds, notes, or coupons shall cease to be a director or officerbefore the delivery of those bonds or notes, that signature shall be valid andsufficient for all purposes, as if the director or officer had remained inoffice until the delivery.