§ 45-33.2-6 - Issuance of special obligation bonds.
SECTION 45-33.2-6
§ 45-33.2-6 Issuance of special obligationbonds. – (a) A city or town may, in compliance with any applicable provisions of thegeneral laws (except as provided in this section) borrow money by the issue ofspecial obligation bonds for the purpose of carrying out a project pursuant toa duly adopted project plan. Without limiting the generality of the preceding,the bonds may be issued for project costs which may include interest prior toand during the carrying out of a project and for a reasonable time thereafter,reserves that may be required by any agreement securing the bonds, and allother expenses including reimbursements of expenses previously paid from anyother source, incidental to planning, carrying out, and financing the project.Bonds issued under this section shall be payable solely from project revenuesand shall not be deemed to be a pledge of faith and credit of the city or town.Every bond issued under this section shall recite on its face that it is aspecial obligation bond payable solely from project revenues pledged for itsrepayment.
(b) The bonds of each issue shall be dated and may be maderedeemable before maturity with or without premium. Subject to the authorizingvote, the officers authorized to sell the bonds shall determine the date ordates of the bonds, their denomination or denominations, the place or places ofpayment of the principal and interest, which may be at any bank or trustcompany within or without the state, their interest rate or rates, maturity ormaturities, redemption privileges, if any, and the form and other details ofthe bonds, including interest coupons to be attached to them. The bonds shallbe signed by the city or town treasurer, countersigned by the mayor of a cityor by the president of the town council of a town, either manually or byfacsimile, and shall bear the seal of the city or town or a facsimile of theseal. Any coupons attached thereto shall bear the facsimile signature of thecity or town treasurer.
(c) In case any officer whose signature or a facsimile ofwhose signature appears on any bonds, coupons, or notes issued under thischapter ceases to be an officer before their delivery, the signature or thefacsimile shall nevertheless be valid and sufficient for all purposes the sameas if the officer had remained in office until the delivery.
(d) The bonds may be issued in coupon or registered form, orboth, and provision may be made for the registration of any coupon bonds as toprincipal alone and also as to principal and interest, for the reconversioninto coupon bonds or bonds registered as to both principal and interest, andfor the interchange of registered and coupon bonds. Subject to the authorizingvote, the officers authorized to sell the bonds may sell the bonds in a manner,either at public or private sale, and for a price, as they may determine willbest effect the purposes of this chapter.
(e) Prior to the preparation of definitive bonds, the city ortown may issue interim receipts or temporary bonds, with or without coupons,exchangeable for definitive bonds when those bonds have been executed and areavailable for delivery. Provision may be made for the replacement of any bondswhich have become mutilated or have been destroyed or lost.
(f) Notwithstanding any provisions of any municipal charteror general or special law to the contrary, bonds issued under this section mayprovide for annual or more frequent installments of principal in equal,diminishing, or increasing amounts, with the first installment of principal tobe due at any time within five (5) years from the date of the issuance of thebonds.