Chapter 119
2012 -- H 7917
Enacted 05/30/12
A N A C T
RELATING TO
TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES
Introduced By: Representatives Tomasso, Nunes, Serpa, Guthrie, and Morgan
Date Introduced: March 07, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. Section 45-12-4.4 of the General Laws in Chapter
45-12 entitled
"Indebtedness of Towns
and Cities" is hereby amended to read as follows:
45-12-4.4. Borrowing in payment of certain judgments. -- (a) A city or town may
authorize the issuance of bonds, notes, or other evidences of
indebtedness to pay the uninsured
portion of any court judgment or settlement, except any court
judgment or settlement arising out
of any pension obligation of a city or town; provided,
however, that the outstanding principal
amount, in aggregate, shall not exceed five percent (5%) of
the total amount of the city or town's
most recently adopted municipal budget. Notwithstanding
the aforementioned, the town of
Coventry is authorized to issue bonds, notes, or other
evidences of indebtedness to pay the
uninsured portion of any court judgment or settlement, except
any court judgment or settlement
arising out of any pension obligation of a city or town;
provided, however, that the outstanding
principal amount, in aggregate, shall not exceed ten percent
(10%) of the total amount of the town
of
(b) These bonds, notes,
or other evidences of indebtedness are subject to the maximum
aggregate indebtedness permitted to be issued by any city or
town under section 45-12-2.
(c) The bonds, notes,
or other evidences of indebtedness may be issued to pay a
judgment or settlement or may be issued to pay or refund notes
issued under section 45-12-4.1.
(d) The denominations,
maturities, interest rates, methods of sale, and other terms,
conditions, and details of any bonds or notes issued under the
provisions of this section may be
fixed by the vote or resolution of the city or town council
authorizing them, or if no provision is
made in the vote or resolution, by the treasurer or other
officer authorized to issue the bonds or
notes or to hire the money; provided, that the payment of
principal of bonds shall be by sufficient
annual payments that will extinguish the debt at maturity,
the first of these annual payments to be
made not later than one year, and the last payment not
later than fifteen (15) years after the date
of the bonds.
(e) The bonds, notes,
or other evidences of indebtedness may be issued under this section
by any political subdivision without obtaining the
approval of its electors, notwithstanding the
provisions of sections 45-12-19 and 45-12-20 and notwithstanding
any provision of its charter to
the contrary, unless the electors when assembled in a
meeting are the local legislative body for
the purpose of authorizing indebtedness of the political
subdivision.
SECTION 2. This act shall take effect upon passage.
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LC02118
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