§ 46-25-58 - Revenue bonds and notes of the commission.
SECTION 46-25-58
§ 46-25-58 Revenue bonds and notes of thecommission. – (a) The commission shall have the power and is hereby authorized to issue, fromtime to time, its negotiable revenue bonds and notes in one or more series insuch principal amounts as in the opinion of the commission shall be necessaryto provide sufficient funds for achieving its purposes, including the paymentof interest on revenue bonds and notes of the commission to the extentpermitted by law, the establishment of reserves to secure the revenue bonds andnotes (including the reserve funds created pursuant to § 46-25-60), andthe making of all other expenditures of the commission incident to andnecessary or convenient to carrying out its corporate purposes and powers.
(b) All revenue bonds and notes issued by the commission, maybe secured by the full faith and credit of the commission and may be payablesolely out of the revenues, earnings, and receipts of the commission or suchother property pledged for payment. The revenue bonds and notes may be executedand delivered by the commission at any time, from time to time, may be in suchform and denominations and of such tenor and maturities, and may be in beareror registered form, as to principal and interest or as to principal alone, allas the commission, in its sole discretion, may determine.
(c) Revenue bonds may be payable in such installments, and atsuch times not exceeding fifty (50) years from the date thereof, as shall bedetermined by the commission.
(d) Revenue notes may be payable in such installments and atsuch times not exceeding ten (10) years from the date of the original issue ofsuch revenue notes, as shall be determined by the commission.
(e) Revenue bonds and notes may be payable at such places,whether within or without the state of Rhode Island, may bear interest at suchrate or rates payable at such time or times and at such place or placesevidenced in such manner, and may contain such provisions not inconsistentherewith, all as shall be provided in the proceedings of the commission underwhich they shall be authorized to be issued.
(f) There may be retained, by provision made in theproceedings under which any revenue bonds or revenue notes of the commissionare authorized to be issued, an option to redeem all or any part thereof atsuch prices and upon such notice, and on such further terms and conditions, asshall be set forth on the record of the proceedings and on the face of therevenue bonds and notes.
(g) Any revenue bonds or revenue notes of the commission maybe sold, from time to time, at such prices, at public or private sale, and insuch manner as shall be determined by the commission, and the commission shallpay all expenses, premiums, and commissions that it shall deem necessary oradvantageous in connection with the issuance and sale thereof.
(h) Moneys of the commission, including proceeds from thesale of revenue bonds or revenue notes, and revenues, receipts, and income fromany of its sewage treatment facilities, may be invested and reinvested in suchobligations, securities, and other investments consistent with this chapter,and to the extent permitted by the general laws of the state of Rhode Island,and/or as shall be specified in the resolutions under which the revenue bondsor revenue notes are authorized.
(i) Issuance by the commission of one or more series ofrevenue bonds or revenue notes for one or more purposes shall not preclude itfrom issuing other revenue bonds or revenue notes, but the proceedingswhereunder any subsequent revenue bonds or revenue notes may be issued shallrecognize and protect a prior pledge or mortgage made for a prior issue ofrevenue bonds or revenue notes, unless in the proceedings authorizing the priorissue, the right is reserved to issue subsequent revenue bonds or revenue noteson a parity with the prior issue.
(j) The commission is authorized to issue revenue bonds orrevenue notes for the purpose of refunding its revenue bonds or revenue notesthen outstanding, including the payment of any redemption premium thereon andany interest accrued or to accrue to the earliest or subsequent date ofredemption, purchase or maturity, of the revenue bonds or revenue notes, and,if deemed advisable by the commission, for the additional purpose of paying allor part of the cost of acquiring, financing, extending, operating, maintaining,constructing, reconstructing, rehabilitating, developing, planning, orimproving any sewage treatment facility. The proceeds of revenue bonds orrevenue notes issued for the purpose of refunding outstanding revenue bonds orrevenue notes may be applied, in the discretion of the commission, to thepurchase, retirement at maturity, or redemption of the outstanding revenuebonds or revenue notes either on their earliest or a subsequent redemptiondate, and may, pending an application, be placed in escrow. Any escrowedproceeds may be invested and reinvested in obligations of the United Statesand, to the extent permitted by the proceedings authorizing the issuance of therevenue bonds to be refunded, in obligations guaranteed by the United States,or in certificates of deposit or time deposits secured or guaranteed by thestate of Rhode Island or the United States, or an instrumentality of either,maturing at such time or times as shall be appropriate to assure the promptpayment, as to principal, interest, and redemption premium, if any, of theoutstanding revenue bonds or revenue notes to be so refunded. To the extentpermitted by applicable laws, the interest, income, and profits, if any, earnedor realized on any investment may also be applied to the payment of theoutstanding revenue bonds or revenue notes to be so refunded. After the termsof the escrow have been fully satisfied and carried out, any balance of theproceeds and interest, income, and profits, if any, earned or realized on theinvestments thereof, may be returned to the commission for its use. The portionof the proceeds of revenue bonds or revenue notes issued for the additionalpurpose of paying all or part of the cost of acquiring, financing, extending,operating, maintaining, constructing, reconstructing, rehabilitating,developing, planning, or improving any sewage treatment facility, may beinvested and reinvested in such obligations, securities, and other investmentsconsistent herewith as shall be specified in the resolutions under which therevenue bonds or revenue notes are authorized, and which shall mature not laterthan the times when the proceeds will be needed for such purposes. To theextent permitted by applicable laws, the interest, income, and profits, if any,earned or realized on the investments may be applied to the payment of allparts of the costs or may be used by the commission otherwise in furtherance ofits purposes.
(k) The members, the chairperson of the commission, theexecutive director, and other persons executing the revenue bonds or revenuenotes shall not be subject to personal liability or accountability by reasonsof the issuance thereof.
(l) Revenue bonds or revenue notes may be issued under theprovisions of this section without obtaining the consent of any department,division, commission, board, body, bureau, or agency of the state of RhodeIsland, and without any other proceedings or the happening of any conditions orthings other than those proceedings, conditions, or things which arespecifically required by this section and by the provisions of the resolutionauthorizing the issuance of the revenue bonds or revenue notes or the trustagreement securing the bonds or notes.
(m) Notwithstanding the foregoing, the commission shall notissue any bonds, notes, or other evidence of indebtedness without the approvalof the division of public utilities as required by § 39-3-15.
(n) The commission, subject to such agreements withnoteholders or bondholders as may then be in force, shall have the power, outof any funds available therefor, to purchase revenue bonds or revenue notes ofthe commission, which shall thereupon be cancelled, at a price not exceeding:
(1) If the revenue bonds or revenue notes are thenredeemable, the redemption price then applicable plus accrued interest to thenext interest payment date, or
(2) If the revenue bonds or revenue notes are not thenredeemable, the redemption price applicable on the earliest date that therevenue bonds or revenue notes become subject to redemption, plus the interestthat would have accrued to such date.
(o) Whether or not the revenue bonds and notes are of suchform and character as to be negotiable instruments under the terms of the RhodeIsland Uniform Commercial Code, the revenue bonds and notes are hereby madenegotiable instruments within the meaning of and for all the purposes of theRhode Island Uniform Commercial Code.
(p) If a member or officer of the commission whose signatureappears on revenue bonds, revenue notes, or coupons shall cease to be a memberor officer before the delivery of the revenue bonds or revenue notes, thesignature shall, nevertheless, be valid and sufficient for all purposes, thesame as if the member or officer had remained in office until the delivery.