§ 45-12-4 - Borrowing in anticipation of taxes.
SECTION 45-12-4
§ 45-12-4 Borrowing in anticipation oftaxes. – Any city or town by resolution of its city or town council may borrow money ineach financial year in anticipation of the receipt of the proceeds of theannual tax due or to become due in that financial year upon the taxableproperty within the city or town, an amount which, together with any moneyborrowed in anticipation of taxes in any prior year which may remain unpaid,shall not exceed in the aggregate the total tax levy of the then currentfinancial year, or which if no tax levy was made, shall not exceed the tax levyof the next preceding financial year, the money borrowed to be used andexpended for the payment of the current liabilities and expenses of the city ortown, and may issue its negotiable notes therefor. Notes issued under authorityof this section shall bear upon their face the notation "issued in anticipationof taxes assessed as of December 31, ]]]]]]]] " and shall be made payable notlater than one year from their date, but may be refunded or paid by the issueof new notes bearing the notation and payable not later than one year from thedate of the original notes so refunded or paid. The failure of a city or townto comply with any time requirement or deadline imposed by general law, speciallaw or charter in relation to the levy or assessment of taxes shall not affectthe validity of notes issued pursuant to this section. Every city and townborrowing money under the provisions of this section shall assess and levy atax in each financial year sufficient to provide funds for the payment of alloutstanding notes previously issued in anticipation of taxes of the precedingfinancial year.