§ 45-50-14 - Revenue bonds.
SECTION 45-50-14
§ 45-50-14 Revenue bonds. – (a) The authority is authorized to provide by resolution for the issuance, atone time, or from time to time, of revenue bonds of the authority for thepurpose of paying all or a part of the cost of any one or more projects, theconstruction or acquisition of which is authorized by this chapter. Theprincipal of and the interest on the bonds shall be payable from the fundsprovided for payment. The bonds of each issue shall be dated, bear interest ata rate or rates that the authority determines, payable from time to time, shallmature at a time or times not exceeding forty (40) years from their date ordates, as may be determined by the authority, and may be redeemable beforematurity, at the option of the authority, at a price or prices and under termsand conditions as may be fixed by the authority prior to the issuance of thebonds. The authority shall determine the form of bonds, including any interestcoupons to be attached to them, and shall fix the denomination or denominationsof the bonds and the place or places of payment of the principal and interest,which may be at any bank or trust company within or without the state. Thebonds shall be signed by the chairperson of the authority or a facsimile shallbe impressed or imprinted on the bonds and attested by the manual or facsimilesignature of the secretary of the authority, and any coupons attached to thebonds shall bear the facsimile signature of the chairperson of the authority.In case any officer, whose signature or facsimile of whose signatures appearson any bonds or coupons, ceases to be an officer before the delivery of thebonds, the signature or the facsimile is nevertheless valid and sufficient forall purposes the same as if he or she had remained in office until thedelivery. The bonds may be issued in coupon or in registered form, or both, asthe authority may determine, and provision may be made for the registration ofany coupon bonds as to principal alone, and also as to both principal andinterest, for the reconversion into coupon bonds of any bonds registered andcoupon bonds. The authority may sell bonds in a manner, either at public orprivate sale, and for a price that it may determine will best effect thepurposes of this chapter.
(b) The proceeds of the bonds of each issue shall be used forthe payment of the cost of the project or projects for which the bonds havebeen issued, and shall be disbursed in a manner and under restrictions, if any,that the authority may provide in the resolution authorizing the issuance ofthe bonds or in the trust agreement securing the bonds. If the proceeds of thebonds of any issue, by error of estimates, are less than the cost, additionalbonds may in the same manner be issued to provide the amount of the deficit,and, unless otherwise provided in the resolution authorizing the issuance ofthe bonds or in the trust agreement securing the bonds, are deemed to be of thesame issue and are entitled to payment from the same fund without preference ofpriority of the bonds first issued. If the proceeds of the bonds of any issueexceed the cost, the surplus shall be deposited to the credit of the sinkingfund for the bonds, or may be applied to the payment of the cost of any projectfinanced under the provisions of this chapter.
(c) Prior to the preparation of definitive bonds, theauthority may, under like restrictions, issue interim receipts or temporarybonds, with or without coupons, exchangeable for definitive bonds whendefinitive bonds have been executed and are available for delivery. Theauthority may also provide for the replacement of any bonds which becomemutilated or are destroyed or lost. Bonds, other than school housing bondspursuant to chapter 7 of title 16, may be issued under the provisions of thischapter without obtaining the consent of any department, division, commission,board, bureau, or agency of the state, and without any other proceedings or thehappening of any other conditions, or things, than those proceedings,conditions, or things which are specifically required by this chapter. Allbonds, notes and other forms of indebtedness, other than interim financemechanisms, issued in support of school housing projects shall require passageof an enabling act by the general assembly.
(d) However, in no event shall the authority borrow inprincipal amount for any one bond issue more than fifteen percent (15%) of thetotal of the most recent adopted municipal budget. In addition, the totaloutstanding principal amount of bonds of the authority shall not exceed fiftypercent (50%) of the most recent adopted municipal budget; provided, however,that there shall not be included in the calculation of this limitation fiftypercent (50%) of the outstanding principal amount of any bonds issued forprojects for which the authority or the municipality receives school housingaid pursuant to §§ 16-7-44 and 16-7-41.