§ 45-54-16 - Refunding bonds.
SECTION 45-54-16
§ 45-54-16 Refunding bonds. – The corporation is authorized to provide for the issuance of refunding bonds ofthe corporation for the purpose of refunding any bonds then outstanding whichhave been issued under the provisions of this chapter, including the payment ofany redemption premium thereon or interest accrued or to accrue to the earliestor subsequent date of redemption, purchase, or maturity of the bonds and, ifdeemed advisable by the authority, for the additional purpose of paying all orpart of the 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 thecorporation, 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 the 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 corporation foruse by it in furtherance of its purposes. The portion of the proceeds of bondsor notes 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, that are specified inthe 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 corporation in furtherance of its purposes. The issuance of thebonds, the maturities, and other details, the rights of the holders, and therights, duties, and obligations of the corporation in respect to all of theabove shall be governed by the provisions of this chapter insofar as theprovisions may be applicable.