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§45-37.1-6  Bonds and notes of the corporation. –


Published: 2015

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TITLE 45

Towns and cities

CHAPTER 45-37.1

Industrial Facilities Corporation

SECTION 45-37.1-6



   § 45-37.1-6  Bonds and notes of the

corporation. –

(a) The corporation is authorized to issue its negotiable revenue bonds and

notes from time to time for any of its corporate purposes. All bonds and notes

issued by the corporation are payable solely out of the revenues and receipts

derived from the leasing or sale by the corporation of its projects or of any

thereof, or from any other financing arrangement with respect thereto, as may

be designated in the proceedings of the corporation under which the bonds or

notes are authorized to be issued. The bonds and notes may be executed and

delivered by the corporation at any time and, from time to time, may be in a

form and denominations and of a tenor and maturities, may be in bearer form or

in registered form, as to principal and interest or as to principal alone, may

be payable in installments and at a time or times may be payable at places

whether within or without the state, may bear interest at a rate or rates

payable at a time or times and at a place or places and evidenced in a manner,

and may contain provisions not inconsistent herewith, all as are provided in

the proceedings of the corporation under which the bonds are authorized to be

issued; provided, however, that bonds of the corporation are payable not more

than forty (40) years from their date of issue and notes are payable not more

than ten (10) years from their date of issue. If deemed advisable by the

corporation, there may be retained in the proceedings, under which any bonds or

notes of the corporation are authorized to be issued, an option to redeem all

or any part of the bonds or notes as may be specified in the proceedings, at a

price or prices and after notice or notices and on terms and conditions as may

be stated in the proceedings and as may be recited on the face of the bonds or

notes, but nothing herein contained shall be construed to confer on the

corporation any right or option to redeem any bonds or notes, except as may be

provided in the proceedings under which they are issued. Any bonds or notes of

the corporation may be sold at a price or prices, at public or private sale, in

a manner and, from time to time, as may be determined by the corporation, and

the corporation may pay all expenses, premiums, and commissions which it may

deem necessary or advantageous in connection with their issuance and sale. Any

moneys of the corporation, including proceeds from the sale of any bonds or

notes, and revenues, receipts, and income from any of its projects, may be

invested and reinvested in obligations, securities, and other investments that

are provided in the resolution or resolutions under which the bonds or notes

are authorized.



   (b) Issuance by the corporation of one or more series of

bonds or notes for one or more purposes shall not preclude it from issuing

other bonds or notes in connection with the same project or any other projects,

but the proceedings, whereunder any subsequent bonds or notes may be issued,

shall recognize and protect any prior pledge or mortgage made for any prior

issue of bonds or notes, unless in the proceedings authorizing the prior issue,

the right is reserved to issue subsequent bonds or notes on a parity with the

prior issue.



   (c) Without limiting the generality of the preceding, the

corporation may issue its bonds or notes to finance any industrial facilities

which may have been initiated by the Rhode Island industrial facilities

corporation prior to February 27, 1967, and without regard to the stage of

completion of any of the industrial facilities.



   (d) The corporation is authorized to provide for the issuance

of its revenue bonds or notes for the purpose of refunding any revenue bonds or

notes of the corporation then outstanding, including the payment of any

redemption premium on the bonds or notes and any interest accrued or to accrue

to the earliest or subsequent date of redemption, purchase, or maturity of the

revenue bonds or notes, and, if deemed advisable by the corporation, for the

additional purpose of paying all or any part of the cost of constructing and

acquiring additions, improvements, extensions, or enlargements of a project or

any portion of it.



   (e) The proceeds of the revenue bonds or notes issued for the

purpose of refunding outstanding revenue bonds or notes may, in the discretion

of the corporation, be applied to the purchase or retirement at maturity or

redemption of the outstanding revenue bonds or notes either on their earliest

or any subsequent redemption date, and may, pending the application, be placed

in escrow to be applied to the purchase or retirement at maturity or redemption

on a date that may be determined by the corporation.



   (f) The escrowed proceeds, pending that use, may be invested

and reinvested in obligations of or guaranteed by the United States of America,

or in certificates of deposit or time deposits secured by direct obligations of

or guaranteed by the United States of America, maturing at an appropriate time

or times to assure the prompt payment, as to principal, interest, and

redemption premium, if any, on the outstanding revenue bonds or notes to be

refunded. The interest, income, and profits, if any, earned or realized on any

investment may also be applied to the payment of the outstanding revenue bonds

or notes to be refunded. After the terms of the escrow have been fully

satisfied and carried out, any balance of the proceeds and interest, income and

profits, if any, earned or realized on the investments, may be returned to the

corporation for use by it in any lawful manner. The portion of the proceeds of

any revenue bonds or notes issued for the additional purpose of paying all or

any part of the cost of constructing and acquiring additions, improvements,

extensions, or enlargements of a project may be invested and reinvested in

obligations of or guaranteed by the United States of America, or in

certificates of deposit or time deposits secured by direct obligations of or

guaranteed by the United States of America, maturing not later than the time or

times when proceeds will be needed for the purpose of paying all or any part of

the cost. The interest, income and profits, if any, earned or realized on the

investments may be applied to the payment of all or any part of that cost or

may be used by the corporation in any lawful manner.



   (g) All the revenue bonds or notes shall be issued and

secured and shall be subject to the provisions of this chapter in the same

manner and to the same extent as any other revenue bonds and notes issued

pursuant to this chapter. All revenue bonds and notes authorized under this

section and the interest coupons if any, applicable thereto, are hereby made

and shall be construed to be negotiable instruments.



   (h) Money borrowed by the corporation for the purpose of

providing temporary financing of a project or projects or combination of

projects pending the issuance of bonds or other notes shall be evidenced by

notes or other obligations. The principal and interest of all notes or other

obligations of the corporation so issued under the provisions of this section

are payable from the following:



   (1) From the proceeds of bonds subsequently issued; or



   (2) From the proceeds of subsequent borrowings which comply

with the provisions of this section.



   (i) Notwithstanding any other provisions of this chapter, all

of these notes are deemed to be negotiable instruments under the laws of the

state subject only to the provisions for registration contained therein. The

notes or other obligations or any issue of them shall be in a form and contain

any other provisions that the corporation may determine, and the notes or

resolutions or proceedings authorizing the notes or other obligations or any

issue of them may contain, in addition to any provisions, conditions,

covenants, or limitations which the corporation is authorized to include in any

resolution or resolutions authorizing bonds or notes or on any trust indenture

relating to them. The corporation may issue notes or other obligations in a

manner, either publicly or privately, on terms that it may determine to be in

its best interests. The notes or other obligations may be issued under the

provisions of this chapter without obtaining the consent of any department,

division, commission, board, body, or agency of the state, without any other

proceedings or the happening of any conditions or things other than those

proceedings, conditions, or things which are specifically required by this

chapter and by the provisions and resolutions authorizing the issuance of the

notes or obligations.



History of Section.

(P.L. 1967, ch. 11, § 1; P.L. 1971, ch. 255, § 3; P.L. 1980, ch. 229,

§ 3.)