§ 45-12-4.1 - Borrowing where collection of taxes delayed or taxes refunded.
SECTION 45-12-4.1
§ 45-12-4.1 Borrowing where collection oftaxes delayed or taxes refunded. – (a) Notwithstanding any provision of § 45-12-4 to the contrary, a city ortown by resolution of its city council or town council, may authorize the issueof notes of the city or town in order to pay any outstanding tax anticipationnotes or other obligations of the city or town which, in the judgment of thetreasurer or finance director, cannot be paid when due from property taxrevenues as a result of a court order or decision which directly or indirectlydelays the collection of taxes by the city or town, or which provides for therefunding of taxes previously collected, or for any other reason. Notes issuedunder this section are payable within a period of time, not exceeding one year,that is necessary, in the judgment of the treasurer or finance director, forthe city or town to receive sufficient property tax revenue to pay them.
(b) Notes issued under this section may be refunded or paidby the issue of other similar notes. Notes issued under this section shall beexcepted from the operation of § 45-12-4 and shall not be taken intoaccount for the purpose of determining the borrowing capacity of the city ortown under that section.