§ 45-50-22 - Refunding bonds.
SECTION 45-50-22
§ 45-50-22 Refunding bonds. – The authority is authorized to provide for the issuance of refunding bonds ofthe authority for the purpose of refunding any bonds then outstanding whichhave been issued under the provisions of this chapter, including the payment ofany redemption premium or interest accrued or to accrue to the earliest orsubsequent date of redemption purchase or maturity of the bonds, and, if deemedadvisable by the authority, for the additional purpose of paying all or part ofthe cost of acquiring, constructing, reconstructing, rehabilitating, orimproving any project. The proceeds of bonds or notes issued for the purpose ofrefunding outstanding bonds or notes may be applied, in the discretion of theauthority, to the purchase, retirement at maturity, or redemption of theoutstanding bonds or notes, either on their earliest or a subsequent redemptiondate, and may, pending that application, be placed in escrow. Any escrowedproceeds may be invested and reinvested in obligations of or guaranteed by theUnited States of America, or in certificates of deposit, time deposits, orrepurchase agreements fully secured or guaranteed by the state or the UnitedStates, or an instrumentality of either, maturing at a time or timesappropriate to assure the prompt payment, as to principal, interest, andredemption premium, if any, of the outstanding bonds or notes to be sorefunded. 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 authority for useby it in furtherance of its purposes. The portion of the proceeds of bonds ornotes issued for the additional purpose of paying all or part of the cost ofacquiring, constructing, reconstructing, rehabilitating, developing, orimproving any project may be invested and reinvested in obligations,securities, and other investments consistent, herewith, as shall be specifiedin the resolutions under which the bonds are authorized, and which shall maturenot later than the times when the proceeds will be needed for these purposes.The interest, income, and profits, if any, earned or realized on theinvestments, may be applied to the payment of all parts of the costs, or may beused by the authority otherwise in furtherance of its purposes. The issuance ofthe bonds, the maturities, and other details, the rights of the holders, andthe rights, duties, and obligations of the authority, in respect to the bonds,are governed by the provisions of this chapter insofar as the provisions may beapplicable.