=======

art.006/1

1-1

ARTICLE 6

1-2

RELATING TO BOND PREMIUMS

1-3

     SECTION 1. Section 7 of Chapter 246 of the Public Laws, enacted in Article 5 of 06-H-

1-4

7120 Sub A as amended and approved on June 29, 2006, is hereby amended to read as follows:

1-5

     SECTION 7. Sale of bonds and notes. -- Any bonds or notes issued under the authority of

1-6

this act shall be sold from time to time at not less than the principal amount thereof, in such mode

1-7

and on such terms and conditions as the general treasurer, with the approval of the governor, shall

1-8

deem to be for the best interests of the state.

1-9

     Any premiums and accrued interest, net of the cost of bond insurance and underwriters

1-10

discount, that may be received on the sale of the capital development bonds or notes shall become

1-11

part of the general fund Rhode Island Capital Fund of the state and shall be applied to the

1-12

payment of debt service charges of the state, unless directed by federal law or regulation to be

1-13

used for some other purpose.

1-14

     In the event that the amount received from the sale of the capital development bonds or

1-15

notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may

1-16

be used to the extent possible to retire the bonds as the same may become due, to redeem them in

1-17

accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the

1-18

approval of the governor, shall deem to be for the best interests of the state.

1-19

     Any bonds or notes issued under the provisions of this act and coupons on any capital

1-20

development bonds, if properly executed by the manual or facsimile signatures of officers of the

1-21

state in office on the date of execution shall be valid and binding according to their tenor,

1-22

notwithstanding that before the delivery thereof and payment therefor, any or all such officers

1-23

shall for any reason have ceased to hold office.

1-24

     SECTION 2. This article shall take effect upon passage.