TITLE 45
Towns and cities
CHAPTER 45-27
Housing Authority Bonds and Obligations
SECTION 45-27-9
§ 45-27-9 Terms includible in bonds or
obligations.
In connection with the issuance of bonds and/or the incurring of any
obligations under a lease, and in order to secure the payment of those bonds
and/or obligations, the authority has power:
(1) To pledge by resolution, trust indenture, mortgage
(subject to limitations imposed), or other contract all or any part of its
rents, fees, or revenues.
(2) To covenant against mortgaging all or any part of its
property, part of its property, real or personal, then owned or acquired, or
against permitting or suffering any lien on its property.
(3) To covenant with respect to limitations on its right to
sell, lease, or otherwise dispose of any housing project or any part of the
project, or with respect to limitations on its right to undertake additional
housing projects.
(4) To covenant against pledging all or any part of its
rents, fees, and revenues to which its right then exists or the right to which
may come into existence, or against permitting or suffering any lien on them.
(5) To provide for the release of property, rents, fees, and
revenues from any pledge or mortgage, and to reserve rights and powers in, or
the right to dispose of, property which is subject to a pledge or mortgage.
(6) To covenant as to the bonds to be issued pursuant to any
resolution, trust indenture, mortgage, or other instrument and as to the
issuance of bonds in escrow or otherwise, and as to the use and disposition of
the proceeds.
(7) To covenant as to what other, or additional debt, may be
incurred by it.
(8) To provide for the terms, form, registration, exchange,
execution, and authentication of bonds.
(9) To provide for the replacement of lost, destroyed, or
mutilated bonds.
(10) To covenant that the authority warrants the title to the
premises.
(11) To covenant as to the rents and fees to be charged, the
amount (calculated as may be determined) to be raised each year, or other
period of time, by rents, fees, and other revenues, and as to the use and
disposition to be made of these revenues.
(12) To covenant as to the use of any or all of its property,
real or personal.
(13) To create or to authorize the creation of special funds
in which there shall be segregated:
(i) The proceeds of any loan and/or grant;
(ii) All of the rents, fees, and revenues of any housing
project or projects or parts of those revenues;
(iii) Any moneys held for the payment of the costs of
operation and maintenance of the housing projects, or as a reserve for the
meeting of contingencies in the operation and maintenance of the housing
projects;
(iv) Any moneys held for the payment of the principal and
interest on its bonds or the sums due under its leases and/or as a reserve for
those payments; and
(v) Any moneys held for any other reserves or contingencies,
and to covenant as to the use and disposal of the moneys held in those funds.
(14) To redeem the bonds, and to covenant for their
redemption and to provide the terms and conditions for their redemption.
(15) To covenant against extending the time for the payment
of its bonds or interest on them, directly or indirectly, by any means or in
any manner.
(16) To prescribe the procedure, if any, by which the terms
of any contract with bondholders may be amended or abrogated, the amount of
bonds the holders of which must consent thereto, and the manner in which
consent may be given.
(17) To covenant as to the maintenance of its property, its
replacement, the insurance to be carried on the property, and the use and
disposition of insurance moneys.
(18) To vest in an obligee of the authority the right, in the
event of the failure of the authority to observe or perform any covenant on its
part to be kept or performed, to cure the default and to advance any moneys
necessary for that purpose, and the moneys so advanced may be made an
additional obligation of the authority with interest, security, and priority as
may be provided in any trust indenture, mortgage, lease, or contract of the
authority with reference thereto.
(19) To covenant and prescribe as to the events of default
and terms and conditions upon which any or all of its bonds become or may be
declared due before maturity, and to the terms and conditions upon which that
declaration and its consequences may be waived.
(20) To covenant as to the rights, liabilities, powers, and
duties arising upon the breach by it of any covenant, condition, or obligation.
(21) To covenant to surrender possession of all or any part
of any housing project or projects upon the happening of an event of default
(as defined in the contract), and to vest in an obligee the right without
judicial proceedings to take possession and to use, operate, manage, and
control the housing projects or any part of the projects, and to collect and
receive all rents, fees, and revenues arising from the housing projects in the
same manner as the authority itself might do, and to dispose of the moneys
collected in accordance with the agreement of the authority with the obligee.
(22) To vest in a trustee or trustees the right to enforce
any covenant made to secure, pay, or in relation to the bonds, provide for the
powers and duties of the trustee or trustees, to limit liabilities, and provide
the terms and conditions upon which the trustee or trustees or the holders of
bonds or any proportion of them may enforce the covenant.
(23) To make covenants other than and, in addition to, the
covenants expressly authorized, of like or different character.
(24) To execute all instruments necessary or convenient in
the exercise of the powers granted or in the performance of its covenants or
duties, which may contain covenants and provisions, in addition to previously
above specified, as the government or any purchaser of the bonds of the
authority may reasonably require.
(25) To make covenants and to do any and all acts and things
that may be necessary or convenient or desirable in order to secure its bonds,
or in the absolute discretion of the authority tend to make the bonds more
marketable; notwithstanding that the covenants, acts, or things may not be
enumerated in this section; it being the intention to give the authority power
to do all things in the issuance of bonds and in the provisions for their
security that are not inconsistent with the constitution of the state, and no
consent or approval of any judge or court shall be required; provided, that the
authority has no power to mortgage all or any part of its property, real or
personal, except as provided in § 45-27-10.
History of Section.
(P.L. 1935, ch. 2255, § 15; G.L. 1938, ch. 344, § 15; G.L. 1956,
§ 45-27-9; P.L. 2009, ch. 310, § 59.)
