TITLE 46
Waters and Navigation
CHAPTER 46-25
Narragansett Bay Commission
SECTION 46-25-60
§ 46-25-60 Reserve funds and
appropriations.
To assure the continued operation and solvency of the commission for the
carrying out of its corporate purposes:
(1) The commission may create and establish one or more
special funds (herein referred to as "capital reserve funds" ), and may pay
into each capital reserve fund:
(i) Proceeds from the sale of revenue notes or revenue bonds,
to the extent provided in the resolution or resolutions of the commission
authorizing the issuance thereof; and
(ii) Any other money that may be made available to the
commission for the purpose of the fund from any other source. All money held in
a capital reserve fund, except as hereinafter provided, shall be used solely
for the payment of the principal of revenue bonds secured in whole or in part
by the fund or of the sinking fund payments hereinafter mentioned with respect
to the revenue bonds, the purchase or redemption of the revenue bonds, the
payment of interest on the revenue bonds, or the payment of any redemption
premium required to be paid when the revenue bonds are redeemed prior to
maturity, provided, that money in the fund shall not be withdrawn therefrom,
except for the purpose of making (with respect to revenue 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 money of the commission 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 hereinafter provided. Any
income or interest earned by, or incremental to, any capital reserve fund
because of the investment of the funds thereof, may be transferred by the
commission to other funds or accounts of the commission if the transfer would
not reduce the amount of the capital reserve fund below the minimum capital
reserve fund requirement for such fund.
(2) The commission shall not at any time issue revenue bonds
secured in whole or in part by a capital reserve fund if, upon the issuance of
the revenue bonds, the amount of the capital reserve fund would be less than
the minimum capital reserve required for the fund, unless the commission, at
the time of issuance of the revenue bonds, shall deposit in the fund from the
proceeds of the revenue bonds so 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" shall mean, as of any
particular date of computation, an amount of money, as provided in the
resolution or resolutions of the commission authorizing the revenue bonds or
revenue 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 commission, of annual debt service on the revenue bonds of
the commission 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
revenue bonds secured in whole or in part by the fund outstanding on the date
of computation; plus
(ii) The principal amount of all the revenue bonds and
revenue 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
commission authorizing the revenue bonds as payable during the fiscal year as a
sinking fund payment with respect to any of the revenue bonds that mature after
the fiscal year, all calculated on the assumption that the revenue bonds will
after the date of computation, cease to be outstanding by reason, but only by
reason, of the payment of revenue bonds when due and application in accordance
with the resolution authorizing those revenue 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 revenue bonds are authorized, but in no event shall be valued at a value
greater than par.
(4) The commission may create and establish such other fund
or funds as may be necessary or desirable for its purposes, including, but not
limited to, providing for an insurance reserve fund and a replacement reserve
fund.
(5) The commission may by resolution permit the issuance of
revenue 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. Revenue bonds and
notes issued pursuant to this subsection may be secured by such other funds or
methods as the commission may in its discretion determine by resolution.
History of Section.
(P.L. 1989, ch. 557, § 3.)