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.)