§ 46-15.1-10 - Bonds.
SECTION 46-15.1-10
§ 46-15.1-10 Bonds. – (a) The board may borrow money for capital purposes under this chapter and forthe purposes of chapter 15.3 of this title and issue its bonds therefor. Thosepurposes may include all costs (whether incurred prior to or after the issue ofbonds or notes hereunder) of purchase or lease of property, site development,construction, improvement, enlargement, reconstruction, alteration, equipment,furnishings, demolition, or removal of existing buildings or structures(including the cost of purchasing or leasing any lands to which those buildingsor structures may be moved), financing charges, interest prior to and duringthe carrying out of any project, interest for up to one year after thecompletion or estimated completion date of any project, planning, engineering,and legal services, administrative expenses, the funding of notes issued by theboard for those purposes, the refinancing of bonds or notes issued by any city,town, district or other municipal, quasi municipal, or public corporation forthose purposes, the reserves for debt service or other capital or currentexpenses as may be required by a trust agreement or resolution securing notesor bonds, and all other expenses incidental to the determination of thefeasibility of any project or to carrying out the project or to placing theproject in operation.
(b) Bonds shall be payable solely from such funds as arederived under this chapter or chapter 15.3 of this title including, withoutlimiting the generality of the foregoing, revenues derived from pledges ofwater fees and charges from leasing any water supply facilities to any city,town, district, or other municipal, quasi municipal or public or privatecorporation or company engaged in the water supply business in Rhode Island, orwater quality protection charges imposed under chapter 15.3 of this title, orfunds in the watershed protection fund established under chapter 15.3 of thistitle and provided for payment under the applicable trust agreement orresolution described in § 46-15.1-11, and shall contain a statement tothis effect on their face.
(c) The bonds of each issue shall be dated, shall bearinterest at such rate or rates, shall mature at such time or times notexceeding forty (40) years from their dates of issue, as may be determined bythe board, and may be made redeemable before maturity at such price or pricesand under such terms and conditions as may be fixed by the board prior to theissue of the bonds. The board shall determine the form of the bonds, includinginterest coupons to be attached thereto, and the manner of their execution, andshall fix the denomination or denominations of the bonds and the place orplaces of payment of the principal and interest, which may be at any bank ortrust company within or without the state. The bonds shall bear the seal of theboard or a facsimile thereof.
(d) In case any officer whose signature or a facsimile ofwhose signature shall appear on any bonds, coupons, or notes issued by theboard shall cease to be an officer before the delivery thereof, the signatureor the facsimile shall nevertheless be valid and sufficient for all purposesthe same as if the officer had remained in office until after the delivery.
(e) The bonds may be issued in coupon or in registered form,or both, as the board may determine, the provision may be made for theregistration of any coupon bonds as to principal alone and also as to bothprincipal and interest, for the reconversion into coupon bonds of any bondsregistered as to both principal and interest, and for the interchange ofregistered and coupon bonds. The board may sell its bonds and notes in suchmanner, either at public or private sale, and for such price, as it maydetermine will best effect the purposes of this chapter.
(f) Prior to the preparation of definitive bonds, the boardmay issue interim receipts or temporary bonds, with or without coupons,exchangeable for definitive bonds when those bonds shall have been executed andare available for delivery. The board may also provide for the replacement ofany bonds, notes, or coupons which shall become mutilated or shall be destroyedor lost.
(g) Bonds and notes may be issued under this chapter withoutobtaining the consent of any other 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 for the issue ofthose bonds or notes.