§ 42-64-15 - Bonds and notes of the corporation.
SECTION 42-64-15
§ 42-64-15 Bonds and notes of thecorporation. – (a) The Rhode Island economic development corporation shall have the power andis authorized to issue from time to time its negotiable bonds and notes in oneor more series in any principal amounts as in the opinion of the corporationshall be necessary to provide sufficient funds for achieving its purposes,including the payment of interest on bonds and notes of the corporation, theestablishment of reserves to secure those bonds and notes (including thereserve funds created pursuant to § 42-64-18), and the making of all otherexpenditures of the corporation incident to and necessary or convenient tocarrying out its corporate purposes and powers.
(b) All bonds and notes issued by the corporation may besecured by the full faith and credit of the corporation or may be payablesolely out of the revenues and receipts derived from the lease, mortgage, orsale by the corporation of its projects or of any part of its projects, or fromany other revenues or from repayment from any loans made by the corporationwith regard to any of its projects or any part of its projects, all as may bedesignated in the proceedings of the corporation under which the bonds or notesshall be authorized to be issued. The bonds and notes may be executed anddelivered by the corporation at any time from time to time, may be in any formand denominations and of any tenor and maturities, and may be in bearer form orin registered form, as to principal and interest or as to principal alone, allas the corporation may determine.
(c) Bonds may be payable in any installments, and at timesnot exceeding fifty (50) years from their date, as shall be determined by thecorporation.
(d) Except for notes issued pursuant to § 42-64-16,notes, and any renewals, may be payable in any installments and at any timesnot exceeding ten (10) years from the date of the original issue of the notes,as shall be determined by the corporation.
(e) Bonds and notes may be payable at any places, whetherwithin or outside of the state, may bear interest at any rate or rates payableat any time or times and at any place or places and evidenced in any manner,and may contain any provisions not inconsistent with this section, all as shallbe provided in the proceedings of the corporation under which they shall beauthorized to be issued.
(f) There may be retained by provision made in theproceedings under which any bonds or notes of the corporation are authorized tobe issued an option to redeem all or any part of these bonds or notes, at anyprices and upon any notice, and on any further terms and conditions as shall beset forth on the record of the proceedings and on the face of the bonds ornotes.
(g) Any bonds or notes of the corporation may be sold fromtime to time at those prices, at public or private sale, and in any manner asshall be determined by the corporation, and the corporation shall pay allexpenses, premiums, and commissions that it shall deem necessary oradvantageous in connection with the issuance and sale of these bonds and notes.
(h) Moneys of the corporation, including proceeds from thesale of bonds or notes, and revenues, receipts and income from any of itsprojects or mortgages, may be invested and reinvested in any obligations,securities, and other investments consistent with this section as shall bespecified in the resolutions under which the bonds or notes are authorized.
(i) Issuance by the corporation of one or more series ofbonds or notes for one or more purposes shall not preclude it from issuingother bonds or notes in connection with the same project or any other project,but the proceedings whereunder any subsequent bonds or notes may be issuedshall recognize and protect a prior pledge or mortgage made for a prior issueof bonds or notes unless in the proceedings authorizing that prior issue theright is reserved to issue subsequent bonds or notes on a parity with thatprior issue.
(j) The corporation is authorized to issue bonds or notes forthe purpose of refunding its bonds or notes then outstanding, including thepayment of any redemption premium and any interest accrued or to accrue to theearliest or subsequent date of redemption, purchase, or maturity of the bondsor notes, and, if deemed advisable by the corporation, for the additionalpurpose of paying all or part of the cost of acquiring, constructing,reconstructing, rehabilitating, or improving any project, or the making ofloans on any project. The proceeds of bonds or notes issued for the purpose ofrefunding outstanding bonds or notes may be applied, in the discretion of thecorporation, to the purchase, retirement at maturity, or redemption of theoutstanding bonds or notes either on their earliest or a subsequent redemptiondate, and may, pending that application, be placed in escrow. Those escrowedproceeds may be invested and reinvested in obligations of or guaranteed by theUnited States, or in certificates of deposit or time deposits secured orguaranteed by the state or the United States, or an instrumentality of either,maturing at any time or times as shall be appropriate to assure the promptpayment, as to principal, interest, and redemption premium, if any, of theoutstanding bonds or notes to be so refunded. The interest, income and profits,if any, earned or realized on the investment may also be applied to the paymentof the outstanding bonds or notes to be so refunded. After the terms of theescrow have been fully satisfied and carried out, any balance of the proceedsand interest, income and profits, if any, earned or realized on the investmentsmay be returned to the corporation for use by it in furtherance of itspurposes. The portion of the proceeds of bonds or notes issued for theadditional purpose of paying all or part of the cost of acquiring,constructing, reconstructing, rehabilitating, developing, or improving anyproject, or the making of loans on any project, may be invested and reinvestedin any obligations, securities, and other investments consistent with thissection as shall be specified in the resolutions under which those bonds ornotes are authorized and which shall mature not later than the times when thoseproceeds will be needed for those purposes. The interest, income and profits,if any, earned or realized on those investments may be applied to the paymentof all parts of the costs, or to the making of loans, or may be used by thecorporation otherwise in furtherance of its purposes. All bonds or notes shallbe issued and secured and shall be subject to the provisions of this chapter inthe same manner and to the same extent as any other bonds or notes issuedpursuant to this chapter.
(k) The directors, the executive director of the corporation,and other persons executing bonds or notes shall not be subject to personalliability or accountability by reason of the issuance of these bonds and notes.
(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 proceedingsor the happening of any conditions or things other than those proceedings,conditions, or things which are specifically required by this chapter and bythe provisions of the resolution authorizing the issuance of bonds or notes orthe trust agreement securing them.
(m) The corporation, subject to any agreements with noteholders or bondholders as may then be in force, shall have power out of anyfunds available therefor to purchase bonds or notes of the corporation, whichshall thereupon 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 a form andcharacter as to be negotiable instruments under the terms of the Rhode IslandUniform Commercial Code, title 6A, the bonds and notes are hereby madenegotiable instruments within the meaning of and for all the purposes of theRhode Island Uniform Commercial Code, subject only to the provisions of thebonds and notes for registration.
(o) If a director or officer of the corporation whosesignature appears on bonds, notes, or coupons shall cease to be a director orofficer before the delivery of those bonds or notes, that signature shall,nevertheless, be valid and sufficient for all purposes, the same as if thedirector or officer had remained in office until the delivery.