TITLE 45
Towns and cities
CHAPTER 45-38.1
Health And Educational Building Corporation
SECTION 45-38.1-3
§ 45-38.1-3 Definitions.
As used in this chapter, the following words and terms have the following
meaning unless the context indicates another or different meaning or intent:
(1) "Bonds" means bonds of the corporation issued under the
provisions of this chapter, including refunding bonds, notwithstanding that the
bonds may be secured by mortgage or the full faith and credit of the
corporation or the full faith and credit of a participating institution for
higher education or of a participating health care provider or any other
lawfully pledged security of a participating educational institution or child
day care center or of a participating health care provider;
(2) "Borrower" means a student or a parent who has received
or agreed to pay an education loan;
(3) "Capital note(s)" means a note or notes of the
corporation not exceeding twelve (12) months in duration to maturity issued for
the benefit of a health care provider or educational institution to purchase
capital assets to be used in the operations of the health care provider or
educational institution;
(4) "Child day care center" means a child day care center as
defined in section 23-28.1-5, which is a not-for-profit organization;
(5) "Cooperative hospital service organization" means a
corporation created pursuant to chapter 6 of title 7, which meets the
requirements of Section 501(e) of the Internal Revenue Code of 1954, 26 U.S.C.
§ 501(e), and is exempt from federal taxation of income in accordance with
Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3);
(6) "Corporation" means the Rhode Island health and
educational building corporation created and established as a nonbusiness
corporation, under and pursuant to chapter 6 of title 7, as amended, and
constituted and established as a public body corporate and agency of the state
under § 45-38.1-4, or any board, body, commission, department, or officer
succeeding to the principal functions of the corporation or to whom the powers
conferred upon the corporation by this chapter are given by law;
(7) "Corporation loans" means loans by the corporation to an
educational institution or child day care center for the purpose of funding
education loans;
(8) "Cost" as applied to a project or any portion of it,
financed under the provisions of this chapter, embraces all or any part of the
cost of construction and acquisition of all lands, structures, real or personal
property, rights, rights of way, franchises, easements, and interests acquired
or used for a project, the cost of demolishing or removing any buildings or
structures on land so acquired, including the cost of acquiring any lands to
which the buildings or structures may be moved, the cost of all machinery and
equipment, financing charges, interest prior to, during and for a period after
completion of the construction, provisions for working capital, reserves for
principal and interest and for extensions, enlargements, additions,
replacements, renovations and improvements, cost of engineering, financial and
legal services, plans, specifications, studies, surveys, estimates of cost and
of revenues, administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the project, and
other expenses that may be necessary or incident to the construction and
acquisition of the project, the financing of the construction and acquisition,
and the placing of the project in operation;
(9) "Default insurance" means insurance insuring education
loans, corporation loans, or bonds or notes of the corporation against default;
(10) "Default reserve fund" means a fund established pursuant
to a resolution of the corporation for the purpose of securing education loans,
corporation loans, or bonds or notes of the corporation;
(11) "Education loan" means a loan which is made by or on
behalf of an educational institution or child day care center from the proceeds
of a corporation loan, to a student or parents of a student or both, to finance
the student's attendance at the institution;
(12) "Education loan series portfolio" means all education
loans made by or on behalf of a specific educational institution or child day
care center which are funded from the proceeds of a corporation loan to the
institution out of the proceeds of a related specific bond or note issued
through the corporation;
(13) "Educational institution" means:
(i) An educational institution or local education authority
participating in the school housing aid program as described in chapter 7 of
title 16 situated within this state which, by virtue of law or charter, is a
public or other nonprofit educational institution empowered to provide a
program of education at the primary, secondary or high school level, beyond the
high school level, and which is accredited by a nationally recognized
educational accrediting agency or association and awards a bachelor's or
advance degree or provides a program of not less than two (2) years' duration
which is accepted for full credit toward a bachelor's degree;
(ii) Any nonprofit corporation, business corporation, limited
liability company or partnership or limited partnership the shareholders or
members or partners or limited partners of which are limited to those entities
described in paragraph (13)(i) hereof; or
(iii) Any nonprofit corporation, business corporation,
limited liability company, partnership or limited partnership which is a party
to a public-private partnership agreement at least one of the parties of which
is described in paragraph 13(i) hereof.
(14) "Health care provider" means:
(i) Any nonprofit hospital incorporated under the laws of the
state, including any nonprofit subsidiary corporations formed by any hospital
or formed by the parent corporation of the hospital;
(ii) Any nonprofit corporation, the member or members of
which consist solely of one or more hospitals or their parent corporations;
(iii) Any other hospital, which is licensed as a general
hospital or maternity hospital pursuant to chapter 17 of title 23, which is
exempt from taxation;
(iv) Any nonprofit group health association;
(v) Any cooperative hospital service organization, or any
nonprofit corporation that is licensed as a skilled nursing and/or intermediate
care facility pursuant to chapter 17 of title 23, including any nonprofit
subsidiary corporation formed by any of the foregoing skilled nursing and/or
intermediate care facilities, or any nonprofit corporation eligible to receive
funding, pursuant to chapter 8.5 of title 40.1, and/or a corporation created
pursuant to chapter 6 of title 7; provided, that it is a real estate holding
corporation created for the benefit of a nonprofit corporation eligible to
receive funding under chapter 8.5 of title 40.1;
(vi) Any nonprofit health care corporation whose purpose is
to provide home care services or supplies to the citizens of this state
including, but not limited to, nonprofit visiting nurse associations and
nonprofit home care organizations;
(vii) Any other not-for-profit corporation organized pursuant
to chapter 6 of title 7 or pursuant to any special act of the general assembly
and which is exempt from federal taxation of income in accordance with Section
501(c)(3), 26 U.S.C. § 501(c)(3), of the Internal Revenue Code and which
is licensed as:
(A) A health care facility pursuant to chapter 17 of title 23;
(B) A "facility" pursuant to chapter 24 of title 40.1;
(C) A "residential care and assisted living facility"
pursuant to chapter 17.4 of title 23;
(D) An adult day-care facility; or
(E) A "clinical laboratory" pursuant to chapter 23-16.2 and
as a manufacturer of biological products by the United States Department of
Health and Human Services Food and Drug Administration that operates in Rhode
Island;
(viii) Any not-for-profit corporation which is exempt from
federal taxation of income in accordance with Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C. § 501(c)(3), or any successor section of the
Internal Revenue Code, which under contract with the state educates, counsels
or rehabilitates young people who have come subject to child welfare, juvenile
justice or mental health systems in the state; or
(ix) Any network or similar arrangement of those entities
listed in subsection (i) through (viii) above;
(x)(A) Any nonprofit corporation, business corporation,
limited liability company, partnership or limited partnership, the shareholders
or members or partners or limited partners of which are limited to those
entities described in paragraph (14)(i) through (ix) hereof; or
(B) Any nonprofit corporation, business corporation, limited
liability company, partnership or limited partnership which is a party to a
public-private partnership agreement at least one of the parties of which is
described in paragraph (14)(i) through (ix) hereof.
(15) "Loan funding deposit" means monies or other property
deposited by an educational institution or child day care center with the
corporation, a guarantor, or a trustee for the purpose of:
(i) Providing security for bonds or notes;
(ii) Funding a default reserve fund;
(iii) Acquiring default insurance;
(iv) Defraying costs of the corporation, the monies or
properties to be in amounts as deemed necessary by the corporation or a
guarantor as a condition for the institution's participation in the
corporation's programs;
(16) "Nonprofit group health association" means an
association or a corporation established by an act of the general assembly, or
created pursuant to chapter 6 of title 7, to provide all or any part of a
project or property to the citizens of this state;
(17) "Note" means a written promise to pay, including, but
not limited to, capital notes and revenue anticipation notes;
(18) "Parent" means any parent, legal guardian, or sponsor of
the student at an educational institution or child day care center;
(19) "Participating hospital" means a hospital which,
pursuant to the provisions of this chapter, undertakes the financing and
construction or acquisition of a project or undertakes the refunding or
refinancing of obligations or of a mortgage or of advances as provided in and
permitted by this chapter;
(20) "Participating educational institution" means an
educational institution or child day care center which, pursuant to the
provisions of this chapter, undertakes the financing and construction or
acquisition of a project, or undertakes the refunding or refinancing of
obligations or of a mortgage or of advances or undertakes the financing,
directly or indirectly, of education loans, all as provided in and permitted by
this chapter;
(21) "Project," in the case of a participating educational
institution or child day care center means a structure suitable for use as a
dormitory or other housing facility, dining hall, student union, administration
building, academic building, library, laboratory, research facility, classroom,
athletic facility, health care facility, and maintenance, storage or utility
facility, and other structures or facilities related to the educational
institution or child day care center or required or useful for the instruction
of students or the conducting of research or the operation of an educational
institution or child day care center including parking and other facilities or
structures essential or convenient for the orderly conduct of the educational
institution or child day care center and also includes equipment and machinery
and other similar items necessary or convenient for the operation of a
particular facility or structure in the manner for which its use is intended,
but does not include such items as books, fuel, supplies, or other items which
are customarily deemed to result in a current operating charge; and, in the
case of a participating health care provider, means a structure suitable for
use as a hospital, clinic, nursing home, congregate housing for the elderly
and/or infirm, mental health service unit, or other health care facility,
laboratory, laundry, nurses', interns', or clients' residence, administration
building, research facility, and maintenance, storage or utility facility, and
other structures or facilities related to the health care provider or required
or useful for the operation of the project, including parking and other
facilities or structures essential or convenient for the orderly operation of
the project, and also includes equipment and machinery and other similar items
necessary or convenient for the operation of the project in the manner for
which its use is intended, but does not include such items as fuel, supplies,
or other items which are customarily deemed to result in a current operating
charge;
(22) "Public-private partnership agreement" means an
arrangement or agreement pursuant to which a nonprofit corporation, business
corporation, limited liability company, partnership or limited partnership
undertakes or develops a project for an educational institution or a health
care provider including, but not limited to, a lease arrangement, wherein
pursuant to such arrangement or agreement at the conclusion of such arrangement
or agreement the ownership of the bond- financed or note-financed project is
transferred to the educational institution or health care provider for no
additional consideration.
(23) "Revenue anticipation note(s)" means a note or notes of
the corporation not exceeding twelve (12) months in duration to maturity issued
for the benefit of a health care provider or educational institution in
anticipation of revenues reasonably expected to be collected by the health care
provider or educational institution within twelve (12) months from the date of
the note or notes;
(24) "School housing project" means an "approved project," as
defined in § 16-7-36(2);
(25) "School housing project financing" means bonds issued
through the corporation to fund school housing projects as provided in and
permitted by § 16-7-44;
(26) "State" means the state of Rhode Island and Providence
Plantations; and
(27) "State reimbursement" shall mean the state's share of
school housing project cost as determined in accordance with §§
16-7-35 16-7-47.
History of Section.
(P.L. 1967, ch. 56, § 1; P.L. 1968, ch. 224, § 2; P.L. 1971, ch. 261,
§ 1; P.L. 1982, ch. 186, § 1; P.L. 1982, ch. 301, § 2; P.L.
1985, ch. 113, § 1; P.L. 1988, ch. 440, § 1; P.L. 1988, ch. 506,
§§ 1, 2; P.L. 1988, ch. 556, § 1; P.L. 1989, ch. 348, § 1;
P.L. 1990, ch. 491, § 1; P.L. 1991, ch. 292, § 1; P.L. 1992, ch. 221,
§ 1; P.L. 1998, ch. 25, § 1; P.L. 1998, ch. 125, § 1; P.L. 2000,
ch. 184, § 1; P.L. 2003, ch. 376, art. 9, § 12; P.L. 2004, ch. 595,
art. 23, § 1; P.L. 2008, ch. 16, § 1; P.L. 2008, ch. 455, § 1;
P.L. 2009, ch. 310, § 63; P.L. 2011, ch. 351, § 1; P.L. 2011, ch.
402, § 1.)
