§ 45-12-4.4 - Borrowing in payment of certain judgments.
SECTION 45-12-4.4
§ 45-12-4.4 Borrowing in payment ofcertain judgments. – (a) A city or town may authorize the issuance of bonds, notes, or otherevidences of indebtedness to pay the uninsured portion of any court judgment orsettlement, except any court judgment or settlement arising out of any pensionobligation of a city or town; provided, however, that the outstanding principalamount, in aggregate, shall not exceed five percent (5%) of the total amount ofthe city or town's most recently adopted municipal budget.
(b) These bonds, notes, or other evidences of indebtednessare subject to the maximum aggregate indebtedness permitted to be issued by anycity or town under § 45-12-2.
(c) The bonds, notes, or other evidences of indebtedness maybe issued to pay a judgment or settlement or may be issued to pay or refundnotes issued under § 45-12-4.1.
(d) The denominations, maturities, interest rates, methods ofsale, and other terms, conditions, and details of any bonds or notes issuedunder the provisions of this section may be fixed by the vote or resolution ofthe city or town council authorizing them, or if no provision is made in thevote or resolution, by the treasurer or other officer authorized to issue thebonds or notes or to hire the money; provided, that the payment of principal ofbonds shall be by sufficient annual payments that will extinguish the debt atmaturity, the first of these annual payments to be made not later than oneyear, and the last payment not later than fifteen (15) years after the date ofthe bonds.
(e) The bonds, notes, or other evidences of indebtedness maybe issued under this section by any political subdivision without obtaining theapproval of its electors, notwithstanding the provisions of §§45-12-19 and 45-12-20 and notwithstanding any provision of its charter to thecontrary, unless the electors when assembled in a meeting are the locallegislative body for the purpose of authorizing indebtedness of the politicalsubdivision.