2012 -- S 2718

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LC00675

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO PUBLIC FINANCE -- REFUNDING BOND AUTHORITY

     Introduced By: Senator Frank A. Ciccone

     Date Introduced: March 06, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 35-8.1-1, 35-8.1-2, 35-8.1-3, 35-8.1-4, 35-8.1-5, 35-8.1-6, 35-8.1-

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7, 35-8.1-8, 35-8.1-8.1, 35-8.1-8.2, 35-8.1-8.3, 35-8.1-8.4, 35-8.1-8.5, 35-8.1-8.6, 35-8.1-9, 35-

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8.1-10, 35-8.1-11, 35-8.1-12, 35-8.1-13, 35-8.1-14, 35-8.1-15, 35-8.1-16, 35-8.1-17, 35-8.1-18,

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35-8.1-19, 35-8.1-20, 35-8.1-21, 35-8.1-22, 35-8.1-23, 35-8.1-24, 35-8.1-26, 35-8.1-27, 35-8.1-28

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and 35-8.1-29 of the General Laws in Chapter 35-8.1 entitled "Refunding Bond Authority" are

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hereby repealed.

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     35-8.1-1. Short title. -- This chapter shall be known as and may be cited as the "Rhode

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Island Refunding Bond Authority Act".

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     35-8.1-2. Legislative findings. -- The general assembly hereby finds, declares, and

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observes that the:

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      (1) State issued its general obligation bonds dated May 1, 1984, in the aggregate

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principal amount of thirty million dollars ($30,000,000) pursuant to statutory authorities approved

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by the electorate of the state, and the state issued its general obligation bonds dated June 28,

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1985, in the aggregate principal amount of ninety million dollars ($90,000,000) pursuant to

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statutory authorities approved by the electorate of the state;

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      (2) 1984 and 1985 bonds bear interest at a rate in excess of current interest rates and the

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general assembly has determined that it would be in the best interests of the people of the state to

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obtain funds to pay, redeem, or retire the 1984 and 1985 bonds with bonds bearing a lower rate of

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interest;

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      (3) Statutory authorities previously approved do not provide authorization for the

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issuance of general obligation refunding bonds of the state; and

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      (4) General assembly desires to create an authority with the power to issue bonds to

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provide funds to loan to the state so that the state can pay, redeem, or retire the 1984 and 1985

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bonds.

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      (5) Furthermore, the general assembly desires to consolidate debt issuing authorities and

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create administrative savings as a result of such consolidations. To accomplish this desire, on

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July 1, 1997, the public building authority shall be eliminated as an entity and its functions,

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powers, rights, duties and liabilities shall be transferred to the authority pursuant to the provisions

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of this chapter.

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     35-8.1-3. Definitions. -- Unless otherwise indicated by the context, the following

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definitions shall apply for purposes of this chapter:

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      (1) "Authority" shall mean this refunding bond authority created by section 35-8.1-4;

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      (2) "Board" means the board of directors of the authority as constituted by section 35-

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8.1-5;

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      (3) "Bond" or "bonds" shall include any bond or note and other instrument or form of

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indebtedness, whether or not certificated, that may lawfully be issued by the authority;

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      (4) "Revenues" shall include all loan payments, charges, fees, moneys, profits, gifts,

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grants, contributions, appropriations, and all other income derived or to be derived by the

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authority under this chapter;

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      (5) "State" shall mean the state of Rhode Island and Providence Plantations;

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      (6) "1984 bonds" shall mean the state's thirty million dollar ($30,000,000) general

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obligation bonds dated May 1, 1984; and

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      (7) "1985 bonds" shall mean the state's ninety million dollar ($90,000,000) general

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obligation bonds dated June 28, 1985.

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      (8) The word "project" shall mean any public facility or public equipment which the

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authority is authorized to construct, improve, equip, furnish, maintain, acquire, install, or operate

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under the provisions of this chapter, to provide for the conduct of the executive, legislative, and

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judicial functions of government, and its various branches, departments, and agencies, at all

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levels including federal, state and municipal. The projects may include but need not be limited to

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judicial, administrative, educational, residential, rehabilitative, medical, correctional, recreational,

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transportation, public water supply system, and such other projects as the authority shall be

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requested to initiate to provide effective governmental, health, safety, and welfare services in the

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state, or by the federal government, or by any municipality or joint or regional agencies of the

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state or any combination thereof.

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      (9) The word "person" shall mean and include natural persons, firms, associations,

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corporations, business trusts, partnerships, and public bodies.

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      (10) The term "federal agency" shall mean and include the United States of America, and

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any department of, or corporation, agency, or instrumentality heretofore or hereafter created,

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designated or established by the United States of America.

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      (11) The word "construction" shall mean and include acquisition and construction, and

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the term "to construct" shall mean and include to acquire and to construct, all in such manner as

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may be deemed desirable.

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      (12) The term "improvement" shall mean and include extension, enlargement, and

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improvement, and the term "to improve" shall mean and include to extend, to enlarge, and to

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improve all in such manner as may be deemed desirable.

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      (13) The term "public equipment" shall mean and include all tangible personal property,

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new or used, including without limiting the generality of the foregoing, all machinery, equipment,

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transportation equipment, maintenance equipment, construction equipment, sanitation equipment,

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and all other things and rights usually included within the term, including any and all interests in

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the property which are less than full title, such as leasehold interests, security interests, and every

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other interest or right, legal, or equitable.

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      (14) The word "cost" as applied to any project to be constructed or acquired by the

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authority shall include the cost of acquisition or construction, and, if the project consists of

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public facilities, the cost of the acquisition of all land, rights of way, property, rights, easements,

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and interests acquired by the authority for the construction, the cost of demolishing or removing

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any buildings or structures on land so acquired, including the cost of acquiring any lands to which

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the buildings or structures may be moved, the cost of all machinery and equipment, financing

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charges, interest prior to and during construction, and for one year after completion of

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construction, cost of estimates and of planning, engineering, and legal services, plans,

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specifications, surveys, estimates of cost and of revenues, other expenses necessary or incident to

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determining the feasibility or practicability of the construction, administrative expenses and such

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other expenses as may be necessary or incident to the construction, the financing of the

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construction and the placing of the project in operation. The word "cost" as applied to any project

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which the authority may be authorized to acquire shall mean the amount of the purchase price of

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any public equipment, or if the project consists of public facilities, the amount of any

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condemnation award in connection with the acquisition of the project, and shall include the cost

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of acquiring all of the capital stock of the corporation owning the project, if such be the case, and

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the amount to be paid to discharge all of the obligations of the corporation in order to vest title to

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the project which may be determined by the authority to be necessary prior to the financing

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thereof, interest during the period of construction of the improvements and for one year

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thereafter, the cost of all lands, properties, rights, easements, franchises, and permits acquired, the

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cost of planning, engineering, and legal services, plans, specifications, surveys, estimates of cost

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and of revenues, other expenses necessary or incident to determining the feasibility or

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practicability of the acquisition or improvement, administrative expenses, and such other expense

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as may be necessary or incident to the financing of the acquisition or improvement, and the

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placing of the project in operation by the authority. The word "cost" shall include the cost of

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purchase and installation of solar, wind, and renewable energy systems, which include solar

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thermal, solar electric, and wind energy systems that provide heating, cooling, hot water, or

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electricity to a building together with equipment for collection, storage, distribution, and control,

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including structural components of a building specifically designed to retain heat derived from

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solar energy.

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      (15) The word "owner" shall mean and include all individuals, incorporated companies,

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copartnerships, societies, or associations and also municipalities, political subdivisions and all

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public agencies and instrumentalities having any title or interest in any property, rights,

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easements, or franchises authorized to be acquired under the provisions of this chapter.

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      (16) The words "public facilities" shall mean and include any real property, lands,

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structures, buildings, facilities, or improvements, new or existing, and shall include all structures,

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parking facilities, landscaping and other appurtenances and facilities, including fixtures,

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furnishings, personalty, and equipment, incidental to the use of any building, the site thereof, and

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any easements, rights-of-way or other property rights appurtenant thereto or necessary or

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convenient in connection therewith.

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      (17) The word "municipality" shall mean and include any city or town within the state

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now existing or hereafter created or any joint, mutual or regional entities, authorizing venture or

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undertaking involving two (2) or more such cities or towns.

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      (18) The word "state" shall mean and include the state of Rhode Island and Providence

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Plantations, any office, department, board, commission, bureau, division, authority, public

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corporation, agency, or instrumentality thereof.

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     35-8.1-4. Creation. -- There is hereby created and established a public corporation to be

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administered by the office of the general treasurer, having a distinct legal existence from the state

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and not constituting a department of state government, to be known as the "Rhode Island

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refunding bond authority". The authority is constituted as a public instrumentality to exercise

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public and essential governmental functions.

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     35-8.1-5. Governing board -- Members -- Vacancies -- Officers -- Quorum --

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Affirmative votes. -- (a) The authority shall be governed by a board which shall have seven (7)

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members, consisting of:

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      (1) The general treasurer or his or her designee who shall be a subordinate within the

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general treasurer's office, who shall serve as chairperson;

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      (2) The director of administration or his or her designee who shall be a subordinate

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within the department of administration;

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      (3) A representative of the budget office or his or her designee from within the budget

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office, who shall be appointed by the director of administration;

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      (4) Two (2) public members appointed by the governor with the advice and consent of

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the senate, one of whom shall serve an initial term of three (3) years; and one of whom shall serve

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an initial term of four (4) years. Thereafter, the members appointed pursuant to this subsection

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shall serve for a term of four (4) years and until his or her successor is appointed and qualified;

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      (5) Two (2) public members appointed by the general treasurer, with the advice and

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consent of the senate: one of whom shall serve an initial term of two (2) years; and one of whom

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shall serve an initial term of one year. Thereafter, the members appointed pursuant to this

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subsection shall serve for a term of four (4) years and until his or her successor is appointed and

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qualified; and

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      (6) The gubernatorial and general treasurer appointees shall be persons qualified by

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training and experience in the fields of finance or banking. No one shall be eligible for

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appointment unless he or she is a resident of this state. Any member of the general public that

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was appointed by the governor prior to the effective date of this act [July 4, 2006]shall continue

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to serve until such time as a successor is appointed and qualified.

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      Public members of the authority shall be removable by the chair for cause only, and

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removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall

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be unlawful.

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      Newly appointed and qualified public members shall, within six (6) months of their

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appointment, attend a training course that shall be developed and provided by the office of the

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general treasurer and shall include instruction in the following areas: the provisions of chapters

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35-8.1, 42-46, 36-14 and 38-2 of the Rhode Island general laws; and the authority's rules and

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regulations. The director of the department of administration shall, within ninety (90) days of the

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effective date of this act [July 4, 2006] prepare and disseminate training materials relating to the

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provisions of chapters 42-46, 36-14 and 38-2.

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      (b) In the event of vacancy occurring in the public membership, the appointing authority

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shall appoint a public member for the unexpired term. Any public member of the board shall be

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eligible for reappointment. No one shall be eligible for appointment unless he or she is a resident

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of this state.

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      (c) Each member of the board, before entering upon any duties, shall swear or solemnly

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affirm to administer the duties of office faithfully and impartially, and that oath or affirmation

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shall be filed in the office of the secretary of state.

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      (d) The board shall elect one of their number to serve as both secretary and treasurer.

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Four (4) members of the board shall constitute a quorum and the affirmative vote of four (4)

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members shall be necessary for any action taken by the authority. No vacancy in the membership

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of the board shall impair the right of a quorum to exercise all the rights and perform all the duties

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of the board.

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     35-8.1-6. Compensation and expenses of members -- Effect of membership on state

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office or employment. -- The members of the authority shall serve without compensation, but the

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authority shall reimburse them for actual expenses necessarily incurred in the discharge of their

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duties. Notwithstanding any other law, an officer or employee of the state shall not be deemed to

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have forfeited or shall forfeit his or her office or employment or any benefits thereof by reason of

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acceptance of the office of member of the authority.

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     35-8.1-7. Staff -- Consultants -- Rules. -- The authority shall be staffed by the office of

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the general treasurer. The authority may employ such consultants, as it, in its discretion, deems

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necessary. For purposes of this chapter only, the authority may adopt rules pursuant to chapter 35

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of title 42 upon less than twenty (20) days' notice and it may proceed upon any abbreviated notice

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and hearing to adopt an emergency rule if it finds an economic benefit to the state. The rules shall

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become effective immediately upon filing with the secretary of state.

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     35-8.1-8. General powers. -- To carry out the purposes of this chapter, the authority has

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the power to:

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      (1) Sue and be sued;

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      (2) Adopt and have an official seal and alter the seal at its pleasure;

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      (3) Make and alter bylaws, rules, and regulations for the conduct of its affairs and

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business;

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      (4) Maintain an office at such place or places within the state as it may determine;

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      (5) Acquire, hold, use, and dispose of its revenue income, funds, and moneys;

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      (6) Acquire, purchase, hold, and use any property, real, personal or mixed, tangible or

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intangible, or any interest therein necessary or desirable for carrying out the purposes of the

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authority, and to mortgage, lease, or sell any of the property; and (without limitation of the

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foregoing) to lease as lessee, any property, real, personal, or mixed, or any interest therein to

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lease as lessor to the federal government, the state, and any municipality any project of the

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authority, and to sell, transfer, and convey to any lessee or to any other person upon such terms

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and conditions and for such considerations as the authority shall determine.

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      (7) Borrow money, issue its bonds, provide for and secure the payment thereof, and

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provide for the rights of the holders thereof, and purchase, hold, and dispose of any of its bonds;

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      (8) Lend money for its purposes, invest and reinvest its funds, and, at its option, take and

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hold property, real or personal, as security for the payment of funds so loaned and invested,

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except that at no time will the authority take and hold property of the state as security for the

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payment of funds so loaned;

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      (9) Accept, in furtherance of its purposes, appropriations, gifts, or grants of property,

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funds, money, materials, labor, supplies, or services from the United States of America or the

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state or any other state or agencies or departments thereof, or from any governmental unit or any

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person, firm, or corporation, and to carry out the terms or provisions or make agreements with

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respect to those appropriations, gifts, or grants, and to do any and all things necessary, useful,

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desirable, or convenient in connection with the procurement, acceptance, or disposition of those

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appropriations, gifts, or grants;

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      (10) Do and perform any acts and things authorized by this chapter under, through, or by

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means of its officers or consultants or by contracts with any person, firm, or corporation;

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      (11) Make, enter into, and enforce all contracts or agreements necessary, convenient, or

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desirable for the purposes of the authority or pertaining to any loan to the state or to the

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performance of its duties and execution or carrying out of any of its powers under this chapter;

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      (12) Purchase any bond or interest rate insurance and establish such credit or liquidity

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enhancement arrangements with financial institutions as the authority shall deem advisable;

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      (13) Invest any funds or moneys of the authority in the same manner as permitted for

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investment of funds belonging to the state or held in the state treasury; and

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      (14) Do all acts and things necessary, convenient, or desirable to carry out the powers

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expressly granted or necessarily implied in this chapter;

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      (15) Acquire by purchase, lease, or otherwise, and to construct, improve, equip, furnish,

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maintain, repair, and operate projects, and to establish rules and regulations for the use of any

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project;

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      (16) Rent such space in such public facilities as from time to time may not be needed by

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any governmental entity to any person for such other purposes as the authority may determine

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and upon such terms and in such manner as the authority may determine;

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      (17) Employ, in its discretion, planning, architectural, or engineering consultants,

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attorneys, accountants, construction, and financial experts, superintendents, managers, and such

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other officers, employees and agents as may be necessary in its judgment, and to fix their

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compensation;

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      (18) Fix and revise from time to time, subject to the provisions of this chapter, and to

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charge and collect fees, rentals, and other charges for the use of the facilities of, or for the

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services rendered by, the authority or projects thereof, at rates to be determined by the authority,

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for the purpose of providing for the payment of the expenses of the authority, the acquisition,

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construction, improvement, repair, equipping, furnishing, maintenance, and operation of its

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facilities and properties, the payment of the principal of and interest on its obligations, and to

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fulfill the terms and provisions of any agreements made with the purchasers or holders of any

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obligations;

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      (19) Without limitation of the foregoing, to borrow money from, to receive, and accept

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grants for or in aid of construction or acquisition of projects authorized under this chapter from,

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and to enter into contracts, leases, or other transactions with, any federal agency; and to receive

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and accept from the state or any municipality, and from any other source, aid or contributions of

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either money, property, labor, or other things of value, to be held, used, and applied only for the

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purposes for which the grants and contributions may be made;

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      (20) Combine for financing purposes any two (2) or more projects authorized to be

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acquired or constructed under the provisions of this chapter;

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      (21) Be a promoter, partner, member, owner, associate, or manager of any partnership,

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condominium, or other enterprise or venture;

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      (22) Acquire in the name of the authority by purchase or otherwise, on such terms and

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conditions and in such manner as it may deem proper, or by the exercise of the rights of

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condemnation in the manner hereinafter provided, such public or private lands, including public

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parks, playgrounds, or reservations, or parts thereof or rights therein, rights of way, property,

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rights, easements, and interests as it may deem necessary for carrying out the provisions of this

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chapter; provided, however, that all public property damaged in carrying out the powers granted

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by this chapter shall be restored or repaired and placed in its original condition as nearly as

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practicable.

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     35-8.1-8.1. Transfer of functions, powers, rights, duties, and liabilities of the public

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buildings authority. -- Upon the passage of this article there are hereby transferred to the

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authority all the functions, powers, rights, duties, liabilities, property and resources of the public

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buildings authority.

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     35-8.1-8.2. Acquisition and construction of projects -- Lease or sale -- Conveyance to

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authority -- Request for project. -- (a) In order to benefit the people of the state and to provide

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for their general health and welfare and to maintain the high standards of public facilities and

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public equipment within the state the authority is hereby authorized and empowered to acquire

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and construct public facilities and to acquire public equipment; to maintain, repair and operate the

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same; and with the consent of both the governor and the general assembly to issue revenue bonds

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of the authority, payable solely from revenues derived from leasing of the projects, to finance the

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same. Development of the projects may be initiated by the authority only upon request of the

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proper agency of the federal government, or of the legislative body of the municipality seeking

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the project, or of both the general assembly and the governor in the case of the state, the director

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of administration with the approval of the governor being hereby authorized to enter into a

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contract of lease with the authority for the leasing of such projects upon such terms and

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conditions as shall be agreed to by the director of administration and the authority; and, in the

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case of public facilities (except those public facilities to be used in connection with projects to

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provide judicial complexes, administrative offices, educational facilities and warehouse

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facilities), shall require, prior to the issuance of such revenue bonds, approval by resolution of the

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legislative body of the municipality in which they are proposed to be located.

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      (b) Without limiting the generality of the foregoing the authority is expressly empowered

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to lease or sell a project or any part thereof to the state or to any municipality. Any such lease by

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the authority to the state or any municipality may be for such period, upon such terms and

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conditions, with or without an option to purchase, as the authority may determine.

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      (c) The provisions of any other laws or ordinances, general, special or local, or of any

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rule or regulation of the state or any municipality, restricting or regulating in any manner the

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power of the state or any municipality to lease (as lessee or lessor) or sell property, real, personal

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or mixed, shall not apply to leases and sales made with the authority pursuant to this chapter.

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      (d) The state and any municipality, notwithstanding any contrary provision of law, are

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hereby authorized and empowered to lease, lend, grant or convey to the authority, at its request

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upon such terms and conditions as the proper authorities of the state and any such municipality

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may deem reasonable and fair and without the necessity for any advertisement, order of court or

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other action or formality, other than the regular and formal action of the authorities concerned,

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any real property or personal property which may be necessary or convenient to the effectuation

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of the authorized purpose of the authority, including public roads and other real property already

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devoted to public use; and subject to the aforesaid, the state hereby consents to the use of all lands

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owned by it, including lands lying under water, which are deemed by the authority to be

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necessary for the construction or operation of any project.

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      (e) The authority is hereby authorized and empowered to contract for the acquisition of

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any of its projects or portions thereof by the federal government; and to contract with any state,

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federal, or municipal agencies for the performance of any services essential or convenient to its

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purposes under this chapter.

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      (f) Any request by the legislative body of a municipality seeking a project shall be in the

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form of a resolution adopted by a unanimous vote of such body, or, in the case of projects

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requested by the legislative bodies of two or more cities or towns comprising a joint or regional

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undertaking, by a unanimous vote of the legislative body of each such city or town participating

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in such undertaking.

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     35-8.1-8.3. Eminent domain proceedings. -- The authority shall have the right to

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acquire any land, or any interest therein, by the exercise of the power of eminent domain,

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whenever it shall be determined by the authority that the acquisition of the land, or interest, is

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necessary for the construction or the operation of any project.

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      (1) The necessity for an acquisition shall be conclusively presumed upon the adoption by

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the authority of a resolution declaring that the acquisition of the land, or interest therein,

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described in the resolution is necessary for the construction or operation. Within six (6) months

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thereafter the authority shall cause to be filed in the land evidence records of the city or town in

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which the land is located, a copy of the resolution of the authority, together with a plat of the

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land, or interest therein described, and a statement, signed by the chairperson of the authority, that

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the lands, or interest therein, are taken pursuant to the provisions of this chapter. Thereupon the

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authority shall file in the superior court in and for the county in which the land, or interest therein

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lies, a statement of the sum of money estimated by the authority to be just compensation for the

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land taken.

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      (2) Upon the filing of the copy of the resolution, plat, and statement in the land evidence

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records of the city or town, the filing in the superior court, of the statement, and the depositing in

10-27

the superior court, to the use of the persons entitled thereto, of such sum as the court shall

10-28

determine to be amply sufficient to satisfy the claims of all persons interested in the land (and the

10-29

court may, in its discretion, take evidence on the question to determine the sum to be deposited),

10-30

title to the land, or interest therein, shall vest in the authority in fee simple absolute and the

10-31

authority thereupon may take possession of the land, or interest therein.

10-32

      (3) No sum so paid into the court shall be charged with clerk's fees of any nature. After

10-33

the filing of the copy, plat, and statement, notice of the taking of the land, or interest therein, shall

10-34

be served upon the owners of and persons having an estate in and interested in the land by the

11-1

sheriff or his or her deputies of the county in which the land, or interest therein, lies, leaving a

11-2

true and attested copy of the description and statement with each of the persons personally, or at

11-3

their last and usual place of abode in this state with some person living there, and in the case any

11-4

of the persons are absent from this state and have no last and usual place of abode therein

11-5

occupied by any person, the copy shall be left with the persons, if any, in charge of or having

11-6

possession of the land, or interest therein, taken of the absent persons if the same are known to the

11-7

officer; and after the filing of the resolution, plat, and statement, the secretary of the authority

11-8

shall cause a copy of the resolution and statement to be published in some newspaper published

11-9

or having general circulation in the county where the land, or interest therein, may be located, at

11-10

least once a week for three (3) successive weeks. If any person shall agree with the authority for

11-11

the price of the land, or interest therein, so taken, the court upon the application of the parties in

11-12

interest, may order that the sum agreed upon be paid forthwith from the money deposited, as the

11-13

just compensation to be awarded in the proceeding.

11-14

      (4) Any owner of or persons entitled to any estate in or interested in any part of the land,

11-15

or interest therein, so taken, who cannot agree with the authority for the price of the land, or

11-16

interest therein, so taken in which he or she is interested as aforesaid, may, within three (3)

11-17

months after personal notice of the taking, or, if he or she have no personal notice, may within

11-18

one year from the first publication of the copy of the resolution and statement, apply by petition

11-19

to the superior court in and for the county in which the land, or interest therein, lies, setting forth

11-20

the taking of his or her land or interest therein, and praying for an assessment of damages by a

11-21

jury. Upon the filing of the petition the court shall cause twenty (20) days notice of the pendency

11-22

thereof to be given to the authority by serving the chairperson or vice chairperson of the authority

11-23

with a certified copy thereof, and may proceed after notice to the trial thereof; and the trial shall

11-24

determine all questions of fact relating to the value of the land, or interest therein, and the amount

11-25

thereof, and judgment shall be entered upon the verdict of the jury and execution shall be issued

11-26

therefor against the money so deposited in court and in default thereof against any other property

11-27

of the authority. In case two (2) or more conflicting petitioners make claim to the same land, or to

11-28

any interests therein, or to different interests in the same parcel of land, the court upon motion

11-29

shall consolidate their several petitions for trial at the same time by the same jury, and may frame

11-30

all necessary issues for the trial thereof; and all proceedings taken pursuant to the provisions of

11-31

this chapter shall take precedence over all other civil matters then pending before the court, or if

11-32

the superior court in and for the county in which the land, or interest therein, lies, be not in

11-33

session in the county, then the trial may be heard in the superior court for the counties of

11-34

Providence and Bristol.

12-1

      (5) If any lands, or interests therein, in which any minor or other person not capable in

12-2

law to act in his or her own behalf is interested, are taken by the authority under the provisions of

12-3

this chapter, the superior court, upon the filing therein of any petition by or in behalf of the minor

12-4

or other person, may appoint a guardian ad litem for the minor or other person, and the guardian

12-5

may appear and be heard in behalf of the minor or other person; and the guardian may also, with

12-6

the advice and consent of the superior court and upon the terms as said superior court may

12-7

prescribe, release to the authority all claims for damages for the lands of the minor or other

12-8

person or for any interests therein. Any lawfully appointed, qualified, and acting guardian or

12-9

other fiduciary of the estate of any minor or other person, with the approval of the court of

12-10

probate within this state having jurisdiction to authorize the sale of lands and properties within

12-11

this state of any minor or other person, may, before the filing of any petition, agree with the

12-12

authority upon the amount of damages suffered by the minor or other person by any taking of his

12-13

or her lands or of his or her interests in any lands, and may, upon receiving the amount, release to

12-14

the authority all claims of damages of the minor or other person for such taking.

12-15

      (6) Whenever, from time to time the authority has satisfied the court that the amount

12-16

deposited with the court is greater than is amply sufficient to satisfy the claims of all persons

12-17

interested in the land, the court may order that the amount of any excess including any interest or

12-18

increment on any sums so deposited shall be repaid to the authority. Whenever the authority has

12-19

satisfied the court that the claims of all persons interested in the land taken have been satisfied,

12-20

the unexpended balance, including any interest of increment on any sums so deposited, shall be

12-21

paid forthwith to the authority.

12-22

      (7) In any proceedings for the assessment of compensation and damages for land or

12-23

interest therein taken or to be taken by eminent domain by the authority the following provisions

12-24

shall be applicable:

12-25

      (i) At any time during the pendency of the action or proceeding, the authority or an

12-26

owner may apply to the court for an order directing an owner or the authority, as the case may be,

12-27

to show cause why further proceedings should not be expedited, and the court may upon an

12-28

application make an order requiring that the hearings proceed and that any other steps be taken

12-29

with all possible expedition.

12-30

      (ii) If any of the land, or interest therein, is devoted to a public use, it may, nevertheless,

12-31

be acquired, and the taking shall be effective provided that no land, or interest therein, belonging

12-32

to a public utility corporation may be acquired without the approval of the public utilities

12-33

administrator or other officer or tribunal having regulatory power over the corporation. Any land,

12-34

or interest therein, already acquired by the authority may, nevertheless be included within the

13-1

taking for the purpose of acquiring any outstanding interests in the land.

13-2

     35-8.1-8.4. Eminent domain -- Standards. -- In addition to all of the proceedings and

13-3

requirements under section 35-8.1-8.3, the authority shall further be required to follow the same

13-4

statutory proceedings for the taking of land as required of state agencies when the agencies take

13-5

land under the authority granted by chapter 6 of title 37.

13-6

     35-8.1-8.5. Use of projects. -- The use of the facilities of the authority and the operation

13-7

of its business shall be subject to the rules and regulations from time to time adopted by the

13-8

authority; provided, however, that the authority shall not be authorized to do anything which will

13-9

impair the security of the holders of the obligations of the authority or violate any agreements

13-10

with them or for their benefit.

13-11

     35-8.1-8.6. Transfer to governmental body. -- When all bonds issued under the

13-12

provisions of the chapter for each specific project and the interest thereon shall have been paid or

13-13

a sufficient amount for the payment of all the bonds and the interest thereon to the maturity

13-14

thereof shall have been set aside in trust for the benefit of the bondholders, that specific project

13-15

financed under the provisions of this chapter may be transferred to the governmental body leasing

13-16

the project on such terms and conditions and for such consideration as the authority shall

13-17

determine. If the authority shall be dissolved all funds of the authority not required for the

13-18

payment of bonds shall be paid to the general treasurer for the use of the state and all property

13-19

belonging to the authority shall be vested in the state and delivered to it.

13-20

     35-8.1-9. Supplementary powers. -- In addition to any other powers granted in this

13-21

chapter, the authority has the power to:

13-22

      (1) Conduct examinations and hearings and hear testimony and take proof, under oath or

13-23

affirmation, at public or private hearings, on any matter material for its information and necessary

13-24

to carry out the terms of this chapter;

13-25

      (2) Issue subpoenas, necessary to carry out the terms of this chapter, requiring the

13-26

attendance of witnesses and the production of books and papers pertinent to any hearing before

13-27

the authority, or before one or more of the members of the authority appointed by it to conduct

13-28

the hearing; and

13-29

      (3) Apply to any court, having territorial jurisdiction of the offense, to have punished for

13-30

contempt any witness who refuses to obey a subpoena, or who refuses to be sworn or affirmed to

13-31

testify, or who is guilty of any contempt after summons to appear.

13-32

     35-8.1-10. Annual report, audit, and debt service needs certification. -- In the month

13-33

of January, the authority shall make an annual report of its activities for the preceding fiscal year

13-34

to the governor, the speaker of the house of representatives, the president of the senate and the

14-1

secretary of state. The report shall set forth a complete operating and financial statement covering

14-2

its operations during the year, a summary of meetings or hearings held, meeting minutes if

14-3

requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies

14-4

conducted, policies and plans developed, approved, or modified, and programs administered or

14-5

initiated; a summary of performance during the previous fiscal year including accomplishments,

14-6

shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal

14-7

matters related to the authority of the board; a summary of any training courses held pursuant to

14-8

subsection 35-8.1-5(a); a briefing on anticipated activities in the upcoming fiscal year; and

14-9

findings and recommendations for improvements. The report shall be posted electronically on the

14-10

general assembly and the secretary of state's website as prescribed in section 42-20-8.2 of the

14-11

Rhode Island general laws. The director of the department of administration shall be responsible

14-12

for the enforcement of this provision.

14-13

     35-8.1-11. Loan to state authorized -- Repayment subject to appropriation. -- The

14-14

authority may lend money to the state, upon the request of the governor, by entering into a loan

14-15

and trust agreement. The governor is authorized to enter into a loan and trust agreement with the

14-16

authority for the loaning of money to the state upon such terms and conditions as shall be agreed

14-17

upon by the governor and the authority. Upon the loaning and delivery of money to the state, the

14-18

state shall be deemed to have agreed to make certain loan payments in order to provide revenues

14-19

to the authority. Notwithstanding anything in this chapter or any loan and trust agreement to the

14-20

contrary, the amounts required to be paid by the state shall be subject to and dependent upon

14-21

appropriations being made from time to time by the general assembly for that purpose.

14-22

     35-8.1-12. Receipt, investment, and application by state of loan. -- (a) Other than as

14-23

provided in subsection (b), the proceeds of a loan to the state shall, upon their receipt, be paid by

14-24

the general treasurer immediately to the paying agent or other suitable trustee for the 1984 and

14-25

1985 bonds and the paying agent or trustee shall hold the proceeds in trust until they are applied

14-26

to pay the 1984 and 1985 bonds. Neither the governor nor the general treasurer or any other

14-27

official of the state or trustee for the 1984 and 1985 bonds shall make or permit to be made any

14-28

expenditures for new capital improvements from the proceeds of the loan. While the proceeds are

14-29

held in trust, they may be invested in obligations of the United States or the state or any other

14-30

state.

14-31

      (b) The proceeds generated for refinancing the pension obligation shall be paid to the

14-32

general treasurer on behalf of the state, who shall then immediately remit the proceeds to the

14-33

state retirement system. Neither the governor nor the general treasurer or any other official of the

14-34

state shall make any expenditures for new capital improvements from the proceeds. While the

15-1

proceeds are held by the state retirement system they shall be invested pursuant to the investment

15-2

statutes and policies of the state investment commission.

15-3

      (c) The board, with the approval of the governor, shall have the authority to appoint a

15-4

paying agent or other suitable trustee for the 1984-1985 bonds and the governor is authorized to

15-5

execute any documents or agreements on behalf of the state necessary to carry out the purposes of

15-6

this section.

15-7

      (d) Any proceeds issued pursuant to section 35-8.1-13(d), can be used in accordance

15-8

within the terms of any trust or agreement entered into by the authority in connection with such

15-9

bonds.

15-10

     35-8.1-13. Bonds of the authority -- Issuance -- Purposes. -- (a) The authority shall

15-11

have the power and is authorized to provide by resolution for the issuance of bonds upon the

15-12

request of the governor and a finding of a financial benefit to the state, in such principal amounts

15-13

as it shall deem necessary to provide funds for the purposes of:

15-14

      (1) Loaning money to the state to provide funds to pay, redeem, or retire:

15-15

      (i) All or a part of the 1984 and 1985 bonds; or

15-16

      (ii) A portion of the unfunded liability of the state retirement system not to exceed three

15-17

hundred million dollars ($300,000,000); provided, that the authority conferred hereby, as it relates

15-18

to the refunded liability of the state retirement system, shall expire on June 30, 1995;

15-19

      (2) Funding or refunding the principal of, or interest or redemption premium on, any

15-20

bonds issued by it, whether the bonds or interest to be paid, funded, or refunded have or have not

15-21

become due or are subject to redemption prior to maturity in accordance with their terms;

15-22

      (3) Establishing or increasing reserves to secure or to pay such bonds or interest thereon

15-23

as are reasonably required and permitted by law; and

15-24

      (4) Paying all other costs or expenses of the authority incident to and necessary or

15-25

convenient to carry out its purposes and powers.

15-26

      (b) In the event that the authority issues refunding bonds pursuant to subsection (a)(2),

15-27

the proceeds of the refunding bonds may be applied, in the discretion of the authority, to the

15-28

purchase, retirement at maturity, or redemption of the outstanding bonds either at their earliest or

15-29

a subsequent redemption date, and may, pending that application, be placed in escrow with a

15-30

suitable trustee. While the proceeds are held in trust, they may be invested in obligations of the

15-31

United States or the state or any other state.

15-32

      (c) If the authority shall deposit the proceeds of refunding bonds with a suitable trustee

15-33

in such an amount that, when invested in and combined with income expected to be derived from

15-34

obligations of the United States or the state or any other state, are sufficient to pay all principal,

16-1

interest, and premium, if any, on any of its outstanding bonds, then, until the outstanding bonds

16-2

are called for prepayment or otherwise paid, the outstanding bonds shall not be considered debts

16-3

of the authority, for any purpose, from the date of deposit of the moneys with the trustee.

16-4

      (d) Notwithstanding the provisions of subsections (a) -- (c) above, (1) with the consent of

16-5

both the governor and the general assembly the authority is hereby authorized to provide by

16-6

resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for

16-7

the purpose of paying all or a part of the cost of any one or more projects, the construction or

16-8

acquisition of which is authorized by this chapter. The principal of and the interest on the bonds

16-9

shall be payable solely from the funds herein provided for the payment. The bonds of each issue

16-10

pursuant to this subsection shall be dated, shall bear interest at such rate or rates as the authority

16-11

shall determine, payable semi-annually, shall mature at such time or times not exceeding forty

16-12

(40) years from their date or dates, as may be determined by the authority, and may be made

16-13

redeemable before maturity, at the option of the authority, at such price or prices and under such

16-14

terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The

16-15

authority shall determine the form of the bonds, including any interest coupons to be attached

16-16

thereto, and shall fix the denomination or denominations of the bonds and the place or places of

16-17

payment of the principal and interest, which may be at any bank or trust company within or

16-18

without the state. The bonds shall be signed by the chairperson of the authority or shall bear his or

16-19

her facsimile signature, and the official seal of the authority or a facsimile thereof shall be

16-20

impressed or imprinted thereon and attested by the secretary of the authority, and any coupons

16-21

attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case

16-22

any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons

16-23

shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall

16-24

nevertheless be valid and, sufficient for all purposes, the same as if he or she had remained in

16-25

office until the delivery. The bonds may be issued in coupon or in registered form, or both, as the

16-26

authority may determine, and provision may be made for the registration of any coupon bonds as

16-27

to principal alone and also as to both principal and interest, for the reconversion into coupon

16-28

bonds of any bonds registered as to both principal and interest and for the interchange of

16-29

registered and coupon bonds. The authority may sell such bonds in such manner, either at public

16-30

or private sale, and for such price, as it may determine will best effect the purposes of this

16-31

chapter.

16-32

      (2) The proceeds of the bonds issued pursuant to subsection (d) shall be used solely for

16-33

the payment of the cost of the project or projects for which the bonds shall have been issued, and

16-34

shall be disbursed in such manner and under such restrictions, if any, as the authority may

17-1

provide in the resolution authorizing the issuance of the bonds or in the trust agreement

17-2

hereinafter mentioned securing the same. If the proceeds of the bonds of any issue shall exceed

17-3

the cost, the surplus shall be deposited to the credit of the sinking fund for the bonds or may be

17-4

applied to the payment of the cost of any project thereafter financed under the provisions of

17-5

subsection (d).

17-6

      (3) Prior to the preparation of definitive bonds, the authority may, under like restrictions,

17-7

issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive

17-8

bonds when the bonds shall have been executed and are available for delivery. The authority may

17-9

also provide for the replacement of any bonds which shall become mutilated or shall be destroyed

17-10

or lost. Bonds may be issued under the provisions of this subsection without obtaining the

17-11

consent of any department, division, commission, board, bureau, or agency of the state, and

17-12

without any other proceedings or the happening of any other conditions or things than those

17-13

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

17-14

      (4) In the discretion of the authority, any bonds issued under the provisions of this

17-15

chapter may be secured by a trust agreement by and between the authority and a corporate

17-16

trustee, which may be any trust company or bank having the powers of a trust company within or

17-17

without the state. The trust agreement or the resolution providing for the issuance of the bonds

17-18

may pledge or assign the revenues to be received and may convey or mortgage any project or any

17-19

part thereof or any combination of projects or parts hereof. The trust agreement or resolution

17-20

providing for the issuance of the bonds may contain such provisions for protecting and enforcing

17-21

the rights and remedies of the bondholders or noteholders as may be reasonable and proper and

17-22

not in violation of the law, including covenants setting forth the duties of the authority in relation

17-23

to the acquisition of property and the construction, improvement, maintenance, repair, operation,

17-24

and insurance of the project or projects in connection with which the bonds shall have been

17-25

authorized, the custody, safeguarding, and application of all moneys, and conditions or limitations

17-26

with respect to the issuance of additional bonds. It shall be lawful for any bank or trust company

17-27

incorporated under the laws of the state which may act as depository of the proceeds of bonds or

17-28

of revenues to furnish such indemnifying bonds or to pledge such securities as may be required

17-29

by the authority. The trust agreement may set forth the rights and remedies of the bondholders

17-30

and of the trustee, and may restrict the individual right of action by bondholders. In addition to

17-31

the foregoing, the trust agreement or resolution may contain such other provisions as the

17-32

authority may deem reasonable and proper for the security of the bondholders. All expenses

17-33

incurred in carrying out the provisions of the trust agreement or resolution may be treated as a

17-34

part of the authority's cost of operation and maintenance.

18-1

      (5) The authority is hereby authorized to provide for the issuance of refunding bonds of

18-2

the authority for the purpose of refunding any bonds then outstanding which shall have been

18-3

issued under the provisions of this subsection, including the payment of any redemption premium

18-4

thereon or any interest accrued or to accrue to the earliest or subsequent date of redemption

18-5

purchase or maturity of the bonds. The proceeds of bonds or notes issued for the purpose of

18-6

refunding outstanding bonds or notes may be applied, in the discretion of the authority, to the

18-7

purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their

18-8

earliest or a subsequent redemption date, and may, pending the application, be placed in escrow.

18-9

Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the

18-10

United States of America, or in certificates of deposit, time deposits, or repurchase agreements

18-11

fully secured or guaranteed by the state or the United States, or an instrumentality of either,

18-12

maturing at such time or times as shall be appropriate to assure the prompt payment, as to

18-13

principal, interest, and redemption premium, if any, of the outstanding bonds and notes to be so

18-14

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

18-15

be applied to the payment of the outstanding bonds or notes to be so refunded. After the terms of

18-16

the escrow have been fully satisfied and carried out, any balance of the proceeds and interest,

18-17

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

18-18

authority for use by it in furtherance of its purposes. The issuance of the bonds, the maturities and

18-19

other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the

18-20

authority in respect of the same shall be governed by the provisions of this chapter insofar as the

18-21

same may be applicable.

18-22

     35-8.1-14. Negotiability of bonds. -- Notwithstanding any law to the contrary, bonds

18-23

issued under this chapter are fully negotiable for all purposes.

18-24

     35-8.1-15. Form of bonds. -- (a) Bonds shall be authorized by resolution of the authority

18-25

and may be issued in one or more series and shall bear such date or dates, mature at such time or

18-26

times, be in such denomination or denominations, be in such form, carry such conversion or

18-27

registration privileges, have such rank or priority, be executed in such manner, be payable from

18-28

such sources, in such medium of payment, at such place or places within or without the state, and

18-29

be subject to such terms of redemption, with or without premium, as the authority shall

18-30

determine. The rate or rates of interest on the bonds may be fixed or variable. Variable rates shall

18-31

be determined in the manner and in accordance with the procedures established by the authority

18-32

prior to the issuance of the bonds. Bonds bearing a variable rate of interest may be converted to

18-33

bonds bearing a fixed rate of interest to the extent and in the manner determined by the authority

18-34

prior to the issuance of the bonds. The interest on bonds may be payable semiannually or

19-1

annually or at any other interval as may be provided by the authority prior to the issuance of the

19-2

bonds, or the interest may be compounded and paid at maturity or at any other times as may be

19-3

specified by the authority prior to the issuance of the bonds.

19-4

      (b) In case any person whose signature or facsimile of whose signature shall appear on

19-5

any bonds shall cease to be an officer before the delivery of the bonds, the signature or the

19-6

facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had

19-7

remained in office until delivery. The bonds may be issued in coupon form or in any form

19-8

permitted by chapter 13 of this title, or both, as the authority may determine, and provision may

19-9

be made for the registration of any coupon form bonds as to principal alone and also as to both

19-10

principal and interest, for the reconversion into coupon form bonds of any bonds registered as to

19-11

both principal and interest, and for the interchange of registered and coupon form bonds. The

19-12

authority may sell these bonds in such manner, either at public or private sale, and for such price

19-13

as it may determine will best effect the purposes of this chapter.

19-14

      (c) The authority may, if it deems it desirable to do so, cause the bonds to conform to

19-15

any requirements imposed to exempt the interest paid on the bonds from federal income taxation.

19-16

      (d) The proceeds of the bonds shall be loaned to the state and shall be disbursed in such

19-17

manner and under such restrictions, if any, as the authority may provide in the resolution

19-18

authorizing the issuance of the bonds or in the loan and trust agreement mentioned in section 35-

19-19

8.1-16 securing the bonds. Any surplus proceeds may be used to repurchase bonds of the

19-20

authority, may be deposited to the credit of any reserve fund for the bonds, or may be used for

19-21

any other purpose of the authority consistent herewith.

19-22

      (e) Bonds may be issued under the provisions of this chapter without obtaining the

19-23

consent of any department, division, commission, board, bureau, or agency of the state, and

19-24

without any other proceedings or the happening of any other conditions or things than those

19-25

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

19-26

Notwithstanding the foregoing, the authority shall be subject to chapter 10.1 of title 42 (Public

19-27

Finance Management Board).

19-28

     35-8.1-16. Loan and trust agreement. -- In the discretion of the authority, any bonds

19-29

issued under the provisions of this chapter may be secured by a loan and trust agreement by and

19-30

between the (1) authority, the state, and a corporate trustee, which may be any trust company or

19-31

bank having the powers of a trust company within or without the state; or (2) the authority, the

19-32

state and the state retirement system. The loan and trust agreement, or the resolution providing for

19-33

the issuance of the bonds, may pledge or assign the revenues of the authority and may contain

19-34

such provisions for protecting and enforcing the rights and remedies of the bondholders as may

20-1

be reasonable and proper and not in violation of law. It shall be lawful for any bank or trust

20-2

company incorporated under the laws of the state which may act as depository of the proceeds of

20-3

bonds or of revenues of the authority to furnish such indemnifying bonds or to pledge such

20-4

securities as may be required by the authority. The loan and trust agreement may set forth the

20-5

rights and remedies of the bondholders and of the trustee, if applicable, and may restrict the

20-6

individual right of action by bondholders.

20-7

     35-8.1-17. Bonds neither debt of or pledge of credit by state or subdivisions. -- (a)

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Bonds issued under this chapter shall not be deemed to constitute a debt of the state or any other

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political subdivision thereof or a pledge of the faith and credit of the state or any other political

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subdivision thereof, but shall be payable solely from the funds provided therefrom from revenues.

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Each bond must contain on its face a statement to the effect that the authority is obligated to pay

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the principal thereof and the interest thereon only from revenues or funds of the authority and that

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neither the faith and credit nor the taxing power of the state is pledged to the payment of the

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principal or the interest on the bonds.

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      (b) Except as may be otherwise expressly provided in this chapter or by the authority,

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every issue of bonds of the authority shall be general obligations of the authority payable out of

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any revenues or funds of the authority. Bonds may additionally be secured by a pledge of any

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grants, subsidies, contributions, funds, or moneys from the United States or the state or any

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governmental unit or any person, firm, or corporation, or a pledge of any income or revenues,

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funds, or money of the authority from any source whatsoever.

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     35-8.1-18. Revenues. -- The authority has the power to fix and collect from time to time,

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subject to the provisions of this chapter, schedules for the repayment of any loan to the state in

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order to generate revenues. The schedules for repayment shall not be subject to supervision or

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regulation by any commission, board, bureau, or agency of the state or of any municipality or

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other political subdivision of the state. The revenues derived from loan repayments may be

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pledged as provided in any loan and trust agreement or resolution of the authority. The pledge

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shall be valid and binding from the time when the pledge is made. The revenues so pledged and

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thereafter received by the authority shall immediately be subject to the lien of the pledge without

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physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as

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against all parties having claims of any kind in tort, contract, or otherwise against the authority,

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irrespective of whether the parties have notice thereof. Neither the resolution nor any loan and

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trust agreement by which a pledge is created need be filed or recorded except in the records of the

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authority. The use and disposition of revenues shall be subject to the provisions of the resolution

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authorizing the issuance of the bonds or the loan and trust agreement.

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     35-8.1-19. Trust funds. -- All moneys received pursuant to the provisions of this chapter,

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whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be

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held and applied as may be provided in the resolution authorizing the issuance of the bonds or the

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loan and trust agreement securing the bonds. The authority shall, in the resolution authorizing the

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bonds or in the loan and trust agreement securing the bonds, provide for the payment of proceeds

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of the sale of the bonds and the revenues to be received to a trustee, which shall be any trust

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company or bank having the powers of a trust company within or without the state, which shall

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act as trustee of the funds, and which shall hold and apply the funds to the purposes of this

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chapter, subject to such regulations as this chapter and the resolution or loan and trust agreement

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may provide.

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     35-8.1-20. Remedies. -- Any holder of bonds issued under the provisions of this chapter

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or any coupons appertaining thereto and the trustee under the loan and trust agreement or the

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resolution, except to the extent the rights given in this chapter may be restricted by the loan and

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trust agreement or the resolution, may, by civil action, mandamus, or other proceeding, protect

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and enforce any and all rights under the laws of the state or granted under this chapter or under

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the loan and trust agreement or the resolution authorizing the issuance of the bonds, and may

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enforce and compel the performance of all duties required by this chapter or by the loan and trust

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agreement or resolution to be performed by the authority or by any officer thereof, including the

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fixing, charging, and collection of revenues.

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     35-8.1-21. Exemptions from taxation. -- The exercise of the powers granted by this

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chapter will be in all respects for the benefit of the people of the state and for the facilitation of

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the conduct of their public business, and will constitute the performance of essential

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governmental functions. Therefore, the authority shall not be required to pay any taxes or

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assessments upon any property acquired or used by the authority under the provisions of this

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chapter or upon any income it may receive, and the bonds issued under the provisions of this

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chapter, their transfer and the income therefrom (including any profit made on the sale thereof),

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shall at all times be free from taxation by the state or any political subdivision or other

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instrumentality of the state, excepting estate taxes.

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     35-8.1-22. Bonds constitute legal investment. -- Bonds issued by the authority under the

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provisions of this chapter are securities in which all public officers and public bodies of the state

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and its political subdivisions, insurance companies, trust companies, banking associations,

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investment companies, credit unions, building and loan associations, executors, administrators,

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trustees, and other fiduciaries may properly and legally invest funds, including capital in their

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control or belonging to them. The bonds are securities which may properly and legally be

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deposited with and received by any state or municipal officer or any agency or political

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subdivision of the state for any purpose for which the deposit of bonds or obligations is

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authorized by law.

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     35-8.1-23. State's pledge not to limit or alter authority's powers. -- The state pledges

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to and agrees with any person, firm, or corporation, or federal agency subscribing to or acquiring

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the bonds to be issued by the authority that the state will not limit or alter the rights vested in the

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authority until all bonds at any time issued, together with the interest thereon, are fully met and

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discharged. The state further pledges to and agrees with the United States and any other federal

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agency that, in the event that any federal agency shall contribute any funds to the authority, the

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state will not alter or limit the rights and powers of the authority in any manner which would be

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inconsistent with the due performance of any agreements between the authority and the federal

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agency and the authority shall continue to have and may exercise all powers granted in this

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chapter, so long as these powers shall be necessary or desirable for the carrying out of the purpose

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of this chapter.

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     35-8.1-24. Personal liability on bonds. -- Neither the members of the board nor any

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person executing bonds issued under this chapter are liable personally on the bonds.

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     35-8.1-26. Chapter controlling over inconsistent provisions. -- Insofar as the

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provisions of this chapter are inconsistent with the provisions of any other law or ordinance,

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general, special, or local, or of any rule or regulation of the state or municipality, the provisions

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of this chapter shall be controlling.

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     35-8.1-27. Applicability of other laws. -- This chapter shall be construed to provide a

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complete additional and alternative method for doing the things authorized hereby and shall be

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regarded as supplemental and in addition to the powers conferred by other laws. The issuance of

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all bonds of the authority under the provisions of this chapter need not comply with the

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requirements of any other statute applicable to the issuance of bonds. No proceedings or notice of

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approval shall be required for the issuance by the authority of any bonds.

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     35-8.1-28. Liberal construction. -- This chapter, being necessary for the welfare of the

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state and its inhabitants, shall be liberally construed so as to effectuate its purposes.

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     35-8.1-29. Severability. -- The provisions of this chapter are severable, and if any of its

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provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of

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that court shall not affect or impair any of the remaining provisions.

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SECTION 2. This act shall take effect upon passage.

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LC00675

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC FINANCE -- REFUNDING BOND AUTHORITY

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     This act would the chapter of the general laws known as the Rhode Island Refunding

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Bond Authority Act, except section 35-8.1-25 entitled “Transfer of Authority’s Funds and

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Property upon Dissolution,” which sets forth that if the authority shall be dissolved, all funds of

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the authority not required for the payment of bonds or other debts shall be paid to the general

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treasurer for the use of the state.

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     This act would take effect upon passage.

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LC00675

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