§ 45-12-26 - Commercial agreements relating to registered bonds and notes.
SECTION 45-12-26
§ 45-12-26 Commercial agreements relatingto registered bonds and notes. – In connection with the issuance by a city, town, or other political subdivisionof this state of original or replacement bonds or notes in registered form, thetreasurer of the city, town, or other political subdivision, with the approvalof any other officers authorized to sign those bonds or notes, is authorized tocontract for and engage the services of any bank, trust company, or otherbanking or financial institution within or without the state to performauthentication, registration, transfer, exchange, record, and paying agentfunctions, and for the preparation, signing, and issuance of checks in paymentof those bonds or notes, the preparation and maintenance of reports andaccounts and the performance of related duties. The treasurer, with thisapproval, may also enter into agreements with custodian banks, trust companies,or other financial institutions and financial intermediaries and nominees ofany of them in connection with the establishment and maintenance by others of acentral depository system for the transfer or pledge of those bonds and notes.The agreements may provide for limitation of liabilities of the parties,indemnification, or payment of liquidated damages, and shall include thoseprovisions that the treasurer may deem necessary or desirable to protect thecity, town, or other political subdivision, including provisions indemnifyingit for losses sustained by it as the result of negligence of the other party orparties or any breach of the duties imposed upon them under the agreement.