ARTICLE 2 SUBSTITUTE A
RELATING TO BORROWING IN ANTICIPATION OF
RECEIPTS FROM TAXES
SECTION
1. (a) The State of Rhode Island is
hereby authorized to borrow during its fiscal year ending June 30, 2009, in anticipation
of receipts from taxes such sum or sums, at such time or times and upon such
terms and conditions not inconsistent with the provisions and limitations of
Section 17 of Article VI of the constitution of Rhode Island, as the general
treasurer, with the advice of the Governor, shall deem for the best interests
of the state, provided that the amounts so borrowed shall not exceed three
hundred and fifty million dollars ($350,000,000), at any time outstanding. The
state is hereby further authorized to give its promissory note or notes signed
by the general treasurer and counter-signed by the secretary of state for the
payment of any sum so borrowed. Any
such proceeds shall be invested by the general treasurer until such time as
they are needed. The interest income
earned from such investments shall be used to pay the interest on the
promissory note or notes, or other forms of obligations, and any expense of
issuing the promissory note or notes, or other forms of obligations, with the
balance remaining at the end of said fiscal year, if any, shall be used toward
the payment of long-term debt service of the state, unless prohibited by
federal law or regulation.
(b)
Notwithstanding any other authority to the contrary, duly authorized bonds or
notes of the state issued during the fiscal year ending June 30, 2009 may be
issued in the form of commercial paper, so-called. In connection herewith, the state, acting through the general
treasurer, may enter into agreements with banks, trust companies or other financial
institutions within or outside the state, whether in the form of letters or
lines of credit, liquidity facilities, insurance or other support
arrangements. Any notes issued as
commercial paper shall be in such amounts and bear such terms as the general
treasurer, with the advice of the governor, shall determine, which may include
provisions for prepayment at any time with or without premium at the option of
the state. Such notes may be sold at a
premium or discount, and may bear interest or not and, if interest bearing, may
bear interest at such rate or rates variable from time to time as determined by
the Federal Reserve Bank Composite Index of Commercial Paper, or the Municipal
Market Data General Market Index or other similar commercial paper offerings,
or other method specified in any agreement with brokers for the placement or
marketing of any such notes issued as commercial paper, or other like
agreements. Any such agreement may also
include such other covenants and provisions for protecting the rights, security
and remedies of the lenders as may, in the discretion of the general treasurer,
be reasonable, legal and proper. The
general treasurer may also enter into agreements with brokers for the placement
or marketing of any such notes of the state issued as commercial paper. Any notes to the state issued as commercial
paper in anticipation of receipts from taxes in any fiscal year must also be
issued in accordance with the provisions of Section 17 of Article VI of the
constitution of Rhode Island and within the limitations set forth in Subsection
(a) of Section 1 of this Article.
(c)
Notwithstanding any other authority to the contrary, other forms of obligations
of the state not to exceed twenty million dollars ($20,000,000) of the three
hundred fifty million dollar ($350,000,000) amount authorized in Section 1 may
be issued during the fiscal year ending June 30, 2009 in the form of a
commercial or business credit account, at any time outstanding, with banks,
trust companies or other financial institutions within or outside the state in
order to finance a payables incentive program for the state with its vendors.
Any such forms of obligations entered into pursuant to this subsection shall be
in such amounts and bear such terms as the general treasurer, with the advice
of the governor, shall determine, which may include provisions for prepayment
at any time with or without premium at the option of the state. Any such forms
of obligations entered into pursuant to this subsection may also include such
other covenants and provisions for protecting the rights, security and remedies
of the lenders as may, in the discretion of the general treasurer, be
reasonable, legal and proper. Any such forms of obligations entered into
pursuant to this subsection must also be issued in accordance with the
provisions of Section 17 of Article VI of the Constitution of Rhode Island and
within the limitations set forth in Subsection (a) of Section 1 of this
Article.
SECTION 2. This article shall take effect upon passage.