ARTICLE 7
RELATING TO
BORROWING IN ANTICIPATION OF RECEIPTS FROM TAXES
SECTION 1. (a) The State of
fiscal year ending June 30, 2012, 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
treasurer, with the advise 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,
2012 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
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, 2011 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.