§ 45-12-18 - Bond anticipation notes.
SECTION 45-12-18
§ 45-12-18 Bond anticipation notes. –A city or town, acting by resolution of its city council or town council, afterapproval of the issue of bonds by vote of the qualified electors of the city ortown if approval is required, may authorize the issue from time to time ofnotes in anticipation of the issue of bonds authorized under § 45-12-2 or§ 45-12-2.1. Notes issued under this section shall be payable within five(5) years from their respective dates, but the principal of and interest onnotes issued for a shorter period may be renewed or paid from time to time bythe issue of other notes under this section, provided the period from the dateof an original note to the maturity of any note issued to renew or pay the samedebt or the interest on that debt shall not exceed five (5) years. When debt isincurred under this section, the period within which the annual payments ofprincipal of bonds must be made under § 45-12-5 shall be measured from thedate of the original note or notes representing the debt, but the annualpayments need not commence earlier than one year after the date of the bonds.The town or city may pay the principal of and interest on notes in full fromother than the issuance of refunding notes prior to the issuance of bonds. Insuch case, the town's or city's authority to issue bonds or notes inanticipation of bonds under this act shall continue, provided that:
(1) The town council or city council passes a resolutionevidencing the town's or city's intent to pay off the notes withoutextinguishing the authority to issue bonds or notes; and
(2) That the period from the date of an original note toother note shall not exceed five (5) years.