=======

art.002/2/002/1

=======

1-1

ARTICLE 2

1-2

RELATING TO BORROWING IN ANTICIPATION OF RECEIPTS FROM TAXES

1-3

     SECTION 1. (a) The state of Rhode Island is hereby authorized to borrow during its

1-4

fiscal year ending June 30, 2013, in anticipation of receipts from taxes such sum or sums, at such

1-5

time or times and upon such terms and conditions not inconsistent with the provisions and

1-6

limitations of Section 17 of Article VI of the constitution of Rhode Island, as the general

1-7

treasurer, with the advice of the Governor, shall deem for the best interests of the state, provided

1-8

that the amounts so borrowed shall not exceed two hundred fifty hundred million dollars

1-9

($250,000,000), at any time outstanding. The state is hereby further authorized to give its

1-10

promissory note or notes signed by the general treasurer and counter-signed by the secretary of

1-11

state for the payment of any sum so borrowed. Any such proceeds shall be invested by the general

1-12

treasurer until such time as they are needed. The interest income earned from such investments

1-13

shall be used to pay the interest on the promissory note or notes, or other forms of obligations,

1-14

and any expense of issuing the promissory note or notes, or other forms of obligations, with the

1-15

balance remaining at the end of said fiscal year, if any, shall be used toward the payment of long-

1-16

term debt service of the state, unless prohibited by federal law or regulation.

1-17

     (b) Notwithstanding any other authority to the contrary, duly authorized bonds or notes of

1-18

the state issued during the fiscal year ending June 30, 2013 may be issued in the form of

1-19

commercial paper, so-called. In connection herewith, the state, acting through the general

1-20

treasurer, may enter into agreements with banks, trust companies or other financial institutions

1-21

within or outside the state, whether in the form of letters or lines of credit, liquidity facilities,

1-22

insurance or other support arrangements. Any notes issued as commercial paper shall be in such

1-23

amounts and bear such terms as the general treasurer, with the advice of the governor, shall

1-24

determine, which may include provisions for prepayment at any time with or without premium at

1-25

the option of the state. Such notes may be sold at a premium or discount, and may bear interest or

1-26

not and, if interest bearing, may bear interest at such rate or rates variable from time to time as

1-27

determined by the Federal Reserve Bank Composite Index of Commercial Paper, or the

1-28

Municipal Market Data General Market Index or other similar commercial paper offerings, or

1-29

other method specified in any agreement with brokers for the placement or marketing of any such

1-30

notes issued as commercial paper, or other like agreements. Any such agreement may also

1-31

include such other covenants and provisions for protecting the rights, security and remedies of the

2-1

lenders as may, in the discretion of the general treasurer, be reasonable, legal and proper. The

2-2

general treasurer may also enter into agreements with brokers for the placement or marketing of

2-3

any such notes of the state issued as commercial paper. Any notes to the state issued as

2-4

commercial paper in anticipation of receipts from taxes in any fiscal year must also be issued in

2-5

accordance with the provisions of Section 17 of Article VI of the constitution of Rhode Island and

2-6

within the limitations set forth in Subsection (a) of Section 1 of this Article.

2-7

     (c) Notwithstanding any other authority to the contrary, other forms of obligations of the

2-8

state not to exceed twenty million dollars ($20,000,000) of the two hundred fifty hundred million

2-9

dollar ($250,000,000) amount authorized in Section 1 may be issued during the fiscal year ending

2-10

June 30, 2013 in the form of a commercial or business credit account, at any time outstanding,

2-11

with banks, trust companies or other financial institutions within or outside the state in order to

2-12

finance a payables incentive program for the state with its vendors. Any such forms of obligations

2-13

entered into pursuant to this subsection shall be in such amounts and bear such terms as the

2-14

general treasurer, with the advice of the governor, shall determine which may include provisions

2-15

for prepayment at any time with or without premium at the option of the state. Any such forms of

2-16

obligations entered into pursuant to this subsection may also include such other covenants and

2-17

provisions for protecting the rights, security and remedies of the lenders as may, in the discretion

2-18

of the general treasurer, be reasonable, legal and proper. Any such forms of obligations entered

2-19

into pursuant to this subsection must also be issued in accordance with the provisions of Section

2-20

17 of Article VI of the Constitution of Rhode Island and within the limitations set forth in

2-21

Subsection (a) of Section 1 of this Article. 

2-22

     SECTION 2. This article shall take effect upon passage.