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§42-64-18  Reserve funds and appropriations. –


Published: 2015

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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not be withdrawn (except for the purpose of making (with respect to bonds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.)