TITLE 42
State Affairs and Government
CHAPTER 42-64
Rhode Island Commerce Corporation
SECTION 42-64-18
§ 42-64-18 Reserve funds and
appropriations.
To assure the continued operation and solvency of the Rhode Island commerce
corporation for the carrying out of its corporate purposes:
(1) The corporation may create and establish one or more
special funds, "capital reserve funds", and may pay into each capital reserve
fund: (i) any moneys appropriated and made available by the state for the
purpose of the fund; (ii) proceeds from the sale of notes or bonds to the
extent provided in the resolution or resolutions of the corporation authorizing
the issuance thereof; and (iii) any other moneys that may be made available to
the corporation for the purpose of that fund from any other source. All moneys
held in a capital reserve fund, except as provided, shall be used solely for
the payment of the principal of bonds secured in whole or in part by that fund
or of the sinking fund payments hereinafter mentioned with respect to the
bonds, the purchase or redemption of the bonds, the payment of interest on the
bonds or the payment of any redemption premium required to be paid when the
bonds are redeemed prior to maturity; provided, that moneys in the fund shall
not be withdrawn (except for the purpose of making (with respect to bonds
secured in whole or in part by the fund) payment when due of principal,
interest, redemption premiums, and the sinking fund payments hereinafter
mentioned, for the payment of which other moneys of the corporation are not
available) if the withdrawal would reduce the amount of the fund to less than
the minimum capital reserve requirement established for the fund as provided in
this section. Any income or interest earned by, or incremental to, any capital
reserve fund due to the investment of the funds may be transferred by the
corporation to other funds or accounts of the corporation if the transfer would
not reduce the amount of the capital reserve fund below the minimum capital
reserve fund requirement for the fund;
(2) The corporation shall not at any time issue bonds secured
in whole or in part by a capital reserve fund if, upon the issuance of the
bonds, the outstanding principal balance of such bonds would exceed the sum of
two hundred fifty million dollars ($250,000,000), or the amount of the capital
reserve fund would be less than the minimum capital reserve required for the
fund, unless the corporation, at the time of issuance of the bonds, shall
deposit in the fund from the proceeds of the bonds to be issued, or from other
sources, an amount that, together with the amount then in the fund, is not less
than the minimum capital reserve fund requirement for the fund. For the purpose
of this section, the term "minimum capital reserve fund requirement" means, as
of any particular date of computation, an amount of money, as provided in the
resolution or resolutions of the corporation authorizing the bonds or notes
with respect to which the fund is established, equal to not more than the
greatest of the respective amounts, for the current or any future fiscal year
of the corporation, of annual debt service on the bonds of the corporation
secured in whole or in part by the fund, the annual debt service for any fiscal
year being the amount of money equal to the sum of: (i) the interest payable
during the fiscal year on all bonds secured in whole or in part by the fund
outstanding on the date of computation plus; (ii) the principal amount of all
the bonds and bond anticipation notes outstanding on the date of computation
that mature during the fiscal year; plus (iii) all amounts specified in any
resolution of the corporation authorizing the bonds as payable during the
fiscal year as a sinking fund payment with respect to any of the bonds that
mature after the fiscal year, all calculated on the assumption that the bonds
will after the date of computation cease to be outstanding by reason, but only
by reason, of the payment of bonds when due and application in accordance with
the resolution authorizing those bonds of all of the sinking fund payments
payable at or after the date of computation;
(3) In computing the amount of the capital reserve funds for
the purpose of this section, securities in which all or a portion of the funds
shall be invested, shall be valued as provided in the proceedings under which
the bonds are authorized but in no event shall be valued at a value greater
than par;
(4) In order further to assure the continued operation and
solvency of the corporation for the carrying out of its corporate purposes, the
executive director shall annually, on or before December first, make and
deliver to the governor a certificate stating the sum, if any, required to
restore each capital reserve fund to the minimum capital reserve fund
requirement for the fund. During each January session of the general assembly,
the governor shall submit to the general assembly printed copies of a budget
including the total of the sums, if any, as part of the governor's budget
required to restore each capital reserve fund to the minimum capital reserve
fund requirement for the fund. All sums appropriated by the general assembly
for this purpose, and paid to the corporation, if any, shall be deposited by
the corporation in the applicable capital reserve fund;
(5) All amounts paid over to the corporation by the state
pursuant to the provisions of this section shall constitute and be accounted
for as advances by the state to the corporation and, subject to the rights of
the holders of any bonds or notes of the corporation issued before or after,
shall be repaid to the state without interest from all available operating
revenues of the corporation in excess of amounts required for the payment of
bonds, notes, or other obligations of the corporation, the capital reserve
funds and operating expenses;
(6) The corporation may create and establish any other fund
or funds as may be necessary or desirable for its corporate purposes;
(7) The corporation may by resolution permit the issuance of
bonds and notes to carry out the purposes of this chapter without establishing
a capital reserve fund pursuant to this section and without complying with the
limitations set forth in this section. Bonds and notes issued pursuant to this
subdivision may be secured by any other funds or methods as the corporation may
in its discretion determine by resolution;
(8) On or before January 1 of each year, the Rhode Island
commerce corporation shall issue a report on all such bonds issued by the
corporations. The report shall include at a minimum the following: a list of
each bond issued; the purpose of each bond issued; the amount of each bond
issued; the amount of principal and interest of each bond issued paid to date;
the outstanding principal balance of each bond issued; and the total
outstanding principal balance of all such bonds issued subject to this section.
The report shall be transmitted to the chairpersons of the house and senate
finance committees, with copies to the house and senate fiscal advisors.
History of Section.
(P.L. 1974, ch. 100, § 14; P.L. 2005, ch. 117, art. 6, § 2; P.L.
2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.)