§ 45-38.1-15 - Revenue refunding bonds.
SECTION 45-38.1-15
§ 45-38.1-15 Revenue refunding bonds.– (a) The corporation is authorized to provide for the issuance of its revenuebonds for the purpose of refunding any revenue bonds of the corporation thenoutstanding and any bonds or other obligations issued by or for the benefit ofa participating educational institution for any school housing project,including the payment of any redemption premium on them and any interestaccrued or to accrue to the earliest or subsequent date of redemption,purchase, or maturity of the revenue bonds, and, if deemed advisable by thecorporation, for the additional purpose of paying all or any part of the costof constructing and acquiring additions, improvements, extensions, orenlargements of a project, or any portion of it, or for making additionalcorporation loans.
(b) The proceeds of revenue bonds issued for the purpose ofrefunding outstanding revenue bonds may, in the discretion of the corporation,be applied to the purchase or retirement at maturity or redemption of theoutstanding revenue bonds, either on their earliest or any subsequentredemption date, and may, pending the application, be placed in escrow to beapplied to the purchase or retirement at maturity or redemption on a date thatmay be determined by the corporation.
(c) Any escrowed proceeds, pending use, may be invested andreinvested in obligations of or guaranteed by the United States of America, orin certificates of deposit or time deposits secured by obligations of orguaranteed by the United States of America, maturing at a time or timesappropriate to assure the prompt payment, as to principal, interest, andredemption premium, if any, of the outstanding revenue bonds being refunded.The interest, income, and profits, if any, earned or realized on the investmentmay also be applied to the payment of the outstanding revenue bonds beingrefunded. After the terms of the escrow have been fully satisfied and carriedout, any balance of the proceeds and interest, income, and profits, if any,earned or realized on the investments, may be returned to the corporation foruse by it in any lawful manner.
(d) The portion of the proceeds of revenue bonds issued forthe additional purpose of paying all or any part of the cost of constructingand acquiring additions, improvements, extensions, or enlargements of a projectmay be invested and reinvested in obligations of or guaranteed by the UnitedStates of America, or in certificates of deposit or time deposits secured byobligations of or guaranteed by the United States of America, maturing notlater than the time or times when the proceeds will be needed for the purposeof paying all or any part of the cost. The interest, income, and profits, ifany, earned or realized on the investment, may be applied to the payment of allor any part of the cost or may be used by the corporation in any lawful manner.
(e) All revenue bonds shall be issued and secured and shallbe subject to the provisions of this chapter in the same manner and in the sameextent as any other revenue bonds issued pursuant to this chapter.