§ 44-60-1 - Borrowing in anticipation of receipts from taxes.
SECTION 44-60-1
§ 44-60-1 Borrowing in anticipation ofreceipts from taxes. – (a) The state of Rhode Island is hereby authorized to borrow during its fiscalyear ending June 30, 2002, in anticipation of receipts from taxes, any sum orsums, at any time or times and upon any terms and conditions not inconsistentwith the provisions and limitations of R.I. Const., Art. VI, § 17, thatthe general treasurer, with the advice of the governor, shall deem for the bestinterests of the state, provided that the amounts so borrowed shall not exceedone hundred fifty million dollars ($150,000,000), at any time outstanding. Thestate is hereby further authorized to give its promissory note or notes signedby the general treasurer and counter-signed by the secretary of state for thepayment of any sum so borrowed. Any proceeds shall be invested by the generaltreasurer until such time that they are needed. The interest income earned fromthe investments shall be used to pay the interest on the promissory note ornotes, and any expense of issuing the promissory note or notes, with thebalance remaining at the end of the fiscal year, if any, shall be used towardthe payment of long-term debt service of the state, unless prohibited byfederal law or regulation.
(b) Notwithstanding any other authority to the contrary, dulyauthorized bonds or notes of the state issued during the fiscal year endingJune 30, 2002, may be issued in the form of commercial paper, so-called. Inconnection with this provision, the state, acting through the generaltreasurer, may enter into agreements with banks, trust companies or otherfinancial institutions within or outside the state, whether in the form ofletters or lines of credit, liquidity facilities, insurance or other supportarrangements. Any notes issued as commercial paper shall be in any amounts andbear any terms that the general treasurer, with the advice of the governor,shall determine, which may include provisions for prepayment at any time withor without premium at the option of the state. The notes may be sold at apremium or discount, and may bear interest or not and, if interest bearing, maybear interest at any rate or rates variable from time to time as determined bythe Federal Reserve Bank Composite Index of Commercial Paper, or the MunicipalMarket Data General Market Index or other similar commercial paper offerings,or other method specified in any agreement with brokers for the placement ormarketing of the notes issued as commercial paper, or other like agreements.Any such agreement may also include any other covenants and provisions forprotecting the rights, security and remedies of the lenders that may, in thediscretion of the general treasurer, be reasonable, legal and proper. Thegeneral treasurer may also enter into agreements with brokers for the placementor marketing of the notes of the state issued as commercial paper. Any notes tothe state issued as commercial paper in anticipation of receipts from taxes inany fiscal year must also be issued in accordance with the provisions of R.I.Const., Art. VI, § 17 and within the limitation set forth in this section.