§ 45-12-4.2 - Borrowing in anticipation of federal or state grants.
SECTION 45-12-4.2
§ 45-12-4.2 Borrowing in anticipation offederal or state grants. – A city or town may contract for and accept grants of federal or state aid forany purpose for which it is authorized to appropriate money. A city or town, byresolution of its city council or town council, may authorize the issue ofnotes in anticipation of the receipt of federal or state aid; provided, thatthe aid has been previously approved by the appropriate federal or stateagency. The proceeds of the notes may be used only for the purpose for whichthe aid is granted. The amount of original notes issued under the provisions ofthis section may not exceed the amount of available federal or state aid asestimated by the director of finance or treasurer and are payable within three(3) years from their dates, but the principal of and interest on notes issuedfor a shorter period may be refunded or paid from time to time by the issue ofother notes under the provisions of this section; provided, that the periodfrom the date of an original note to the maturity of any note issued to refundor pay the same debt or the interest on that debt does not exceed three (3)years. To the extent that the state or federal aid actually received isinsufficient to pay the principal and interest on those notes, the city or townshall appropriate a sum sufficient to make the payments.