§ 45-12-30 - Securing of bonds or notes – Trust agreements.
SECTION 45-12-30
§ 45-12-30 Securing of bonds or notes– Trust agreements. – (a) Bonds or notes issued by a city or town may be secured in whole or in partby insurance or by letters or lines of credit or other credit facilities. Thisinsurance, letter, or line of credit or credit facility may provide forreimbursement to be made over period of time, not to exceed two (2) yearsbeyond the maturity date of the bonds or notes secured, as the treasurer ordirector of finance deems proper, and may provide for reimbursement to be madeand any of these notes or bonds to be issued at a rate or rates of interest asthe treasurer or director of finance deems proper, including rates variablefrom time to time as determined by an index, banker's loan rate, or othermethod that may be specified in the agreement or the bond or note.Notwithstanding any contrary provision of law, bonds or notes secured asdescribed in this section may, in the discretion of the treasurer or directorof finance, be subject to prepayment at the option of the holder of these bondsor notes at times and prices and under circumstances that the treasurer ordirector of finance specifies. For the purpose of securing bonds and notes, acity or town, acting by its treasurer or director of finance, may enter into atrust agreement between the city or town and a corporate trustee which shall bea bank or trust company doing business in the state. This trust agreement, andany remarketing or other agreements necessary or incidental to the issuance ofthese bonds or notes, shall be in any form deemed proper by the treasurer ordirector of finance of the city or town, and shall be executed by its treasureror director of finance and countersigned by its mayor or president of the towncouncil. It shall be lawful for any bank or trust company doing business in thestate to act as a depository or trustee under this trust agreement, and tofurnish indemnification and pledge securities that may be required by any cityor town. Any trustee under a trust agreement established pursuant to thissection may bring suit upon the bonds or notes and may, either at law orequity, by suit, action, mandamus, or other proceedings for legal or equitablerelief, enforce all rights under the laws of the state or granted under thissection or under the trust agreement, and may enforce and compel theperformance of all duties required under the trust agreement to be performed bythe city or town or by any officer of the city or town. All expenses incurredin carrying out the provisions of this section may be treated by the city ortown as a cost of issuance.
(b) The powers granted in this section are in addition to andnot in substitution for authority previously granted or subsequently granted tocities and towns or officers on behalf of cities and towns to set the terms,conditions, or details of any bonds or notes, including without limitation, theprovision of bond insurance.