§ 46-15.1-7 - Purchases from and leases, pledges and sales to others.
SECTION 46-15.1-7
§ 46-15.1-7 Purchases from and leases,pledges and sales to others. – (a) Any city, town, district, or other municipal, quasi municipal, or public orprivate corporation or company engaged in the water supply business in RhodeIsland is authorized, from time to time, to sell or otherwise convey to theboard any water supply facilities held by that entity, and to lease from theboard with or without an option to purchase, or contract with the board for theuse of any water supply facilities, or any interest therein, held by the boardunder this chapter, or to contract to purchase water to be supplied by theboard under this chapter. Any city, town, district, or other municipal, quasimunicipal, or public or private corporation or company engaged in the watersupply business in Rhode Island and constituting a "public utility" within themeaning of § 39-1-2(20) is further authorized to pledge to the board waterfees and charges. The provisions of any other laws or ordinances, general,special, or local, or of any rule or regulation of the state or anymunicipality, or of any municipal charter provision, restricting or regulatingin any manner the power of the state or any municipality to lease (as lessee orlessor) or sell or convey property, real, personal, or mixed, or to pledgewater fees and charges shall not apply to leases and sales made with the boardpursuant to this chapter.
(b) Any city, town, district, or other municipal, quasimunicipal, or public or private corporation or company which so leases waterfacilities from the board, or so contracts with the board for the use thereof,is authorized, from time to time, to contract with any other public or privatewater system for the purchase or sale of water to be conveyed or processedthrough or in such facilities, and the latter is similarly authorized to enterinto a contract with the former.
(c) Any lease, pledge agreement or contract under thissection shall be for a term not exceeding fifty (50) years. A lease, pledgeagreement, or contract may be made by a city, town, or district hereunder,either prior or subsequent to the making of any appropriations which may beneeded to carry out the obligations of the city, town, or district under thelease, pledge agreement, or contract. Any such lease, pledge agreement, orcontract shall provide for cooperative undertakings between the city, town ordistrict and the board regarding the construction or installation of facilitiesfor water supply being financed.
(1) Notwithstanding any contrary provisions of any other lawsor ordinances, general, special or local, or of any rule or regulation of thestate or any municipality, or any municipal charter provision, restricting inany manner the power of a municipality to incur debt, the obligations of anycity, town, or district, under any lease, pledge agreement or contract shallnot be considered indebtedness within the meaning of any limitation ofindebtedness or of any provision relating to the manner of authorizing orincurring indebtedness.
(2) Pledges or grants of security interests by a city, townor district hereunder shall be valid and binding from the time when the pledgeor grant in security interest is made; the water fees and charges or othermonies so pledged and then held or thereafter received by such city, town ordistrict shall be immediately subject to the lien of the pledge without anyphysical delivery thereof, or further act; and the lien of any such pledge orgrant of a security interest shall be valid and binding as against all partieshaving claims of any kind in tort, contract, or otherwise against such city,town or district, irrespective of whether the parties have notice thereof.
(3) The agreement by which a pledge or grant of a securityinterest is created need not be filed or recorded except in the records of theboard, and no filing need be made under the Uniform Commercial Code.