ARTICLE 20

RELATING TO MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

 

     SECTION 1. Title 24 of the General Laws entitled "HIGHWAYS" is hereby amended by

adding thereto the following chapter:

 

CHAPTER 18

MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

 

     24-18-1. Short title. -- This act shall be known and may be cited as the "Municipal Road

and Bridge Revolving Fund Act of 2013."

 

     24-18-2. Legislative findings. -- The general assembly finds and declares that:

     (1) Transportation plays a critical role in enabling economic activity in the state of Rhode

Island;

     (2) Cities and towns can lower the costs of borrowing for road and bridge projects

through cooperation with the Rhode Island Clean Water Finance Agency;

     (3) The Clean Water and Drinking Water Fund programs administered by the Rhode

Island Clean Water Finance Agency benefit from the highest bond rating of any public entity in

the state of Rhode Island; and

     (4) Greater coordination among cities and towns will enable more efficient allocation of

infrastructure resources by the state of Rhode Island.

 

     24-18-3. Definitions. -- As used in this chapter, the following terms, unless the context

requires a different interpretation, shall have the following meanings:

     (1) "Agency" means the Rhode Island clean water finance agency as set forth in chapter

46-12.2;

     (2) "Annual construction plan" means the finalized list of approved projects to commence

construction each calendar year;

     (3) "Approved project" means any project approved by the agency for financial

assistance;

     (4) "Department" means the department of transportation, or, if the department shall be

abolished, the board, body, or commission succeeding to the principal functions thereof or upon

whom the powers given by chapter 5 of title 37 to the department shall be given by law.

     (5) "Eligible project" means an infrastructure plan, or portion of an infrastructure plan,

that meets the project evaluation criteria;

     (6) "Financial assistance" means any form of financial assistance other than grants

provided by the agency to a city or town in accordance with this chapter for all or any part of the

cost of an approved project, including, without limitation, temporary and permanent loans, with

or without interest, guarantees, insurance, subsidies for the payment of debt service on loans,

lines of credit, and similar forms of financial assistance;

     (7) "Infrastructure plan" means a project proposed by a city or town that would make

capital improvements to roads, bridges and appurtenances thereto consistent with project

evaluation criteria;

     (8) "Market rate" means the rate the city or town would receive in the open market at the

time of the original loan agreement as determined by the agency in accordance with its rules and

regulations;

     (9) "Project evaluation criteria" means the criteria used by the department to evaluate

infrastructure plans and rank eligible projects and shall include the extent to which the project

generates economic benefits, the extent to which the project would be able to proceed at an earlier

date, the likelihood that the project would provide mobility benefits, the cost effectiveness of the

project, the likelihood that the project would increase safety, and the project’s readiness to

proceed within the forthcoming calendar year;

     (10) "Project priority list" means the list of eligible projects ranked in the order in which

financial assistance shall be awarded by the agency pursuant to section 7 of this chapter;

     (11) "Revolving fund" means the municipal road and bridge revolving fund established

under section 4 of this chapter; and

     (12) "Subsidy assistance" means credit enhancements and other measures to reduce the

borrowing costs for a city or town.

 

     24-18-4. Establishment of the municipal road and bridge revolving fund. -- (a) There

is hereby established a municipal road and bridge revolving fund. The agency shall establish and

set up on its books the revolving fund, to be held in trust and to be administered by the agency

solely as provided in this chapter and in any trust agreement securing bonds of the agency. The

agency shall deposit the following monies into the fund:

     (1) Amounts appropriated or designated to the agency by the state for the purposes of this

chapter;

     (2) Loan repayments and other payments received by the agency pursuant to loan

agreements with cities and towns executed in accordance with this chapter;

     (3) Investment earnings on amounts credited to the fund;

     (4) Proceeds of bonds of the agency to the extent required by any trust agreement for

such bonds;

     (5) Administrative fees levied by the agency;

     (6) Other amounts required by provisions of this chapter or agreement, or any other law

or any trust agreement pertaining to bonds to be credited to the revolving fund; and

     (7) Any other funds permitted by law which the agency in its discretion shall determine

to credit thereto.

     (b) The agency shall establish and maintain fiscal controls and accounting procedures

conforming to generally accepted government accounting standards sufficient to ensure proper

accounting for receipts in and disbursements from the revolving fund.

 

     24-18-5. Administration. -- (a) The agency shall have all the powers necessary and

convenient to carry out and effectuate the purposes and provisions of this chapter including,

without limiting the generality of the preceding statement, the authority:

     (1) To receive and disburse such funds from the state as may be available for the purpose

of the revolving fund subject to the provisions of this chapter;

     (2) To make and enter into binding commitments to provide financial assistance to local

cities and towns from amounts on deposit in the revolving fund;

     (3) To enter into binding commitments to provide subsidy assistance for loans and city

and town obligations from amounts on deposit in the revolving fund;

     (4) To levy administrative fees on cities and towns as necessary to effectuate the

provisions of this chapter, provided the fees have been previously authorized by an agreement

between the agency and the city or town;

     (5) To engage the services of third-party vendors to provide professional services; and

     (6) To establish one or more accounts within the revolving fund; and

     (7) Such other authority as granted to the agency under chapter 46-12.2.

     (b) Subject to the provisions of this chapter, to the provisions of any agreement with the

state authorized by section 24-18-6, and to any agreements with the holders of any bonds of the

agency or any trustee therefor, amounts held by the agency for the account of the revolving fund

shall be applied by the agency, either by direct expenditure, disbursement, or transfer to one or

more other funds and accounts held by the agency or maintained under any trust agreement

pertaining to bonds, either alone or with other funds of the agency, to the following purposes:

     (1) To provide financial assistance to cities and towns to finance costs of approved

projects, and to refinance the costs of the projects, subject to such terms and conditions, if any, as

are determined by the department and/or the agency in accordance with section 24-18-7;

     (2) To fund reserves for bonds of the agency and to purchase insurance and pay the

premiums therefor, and pay fees and expenses of letters or lines of credit and costs of

reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to

otherwise provide security for, and a source of payment for obligations of the agency, by pledge,

lien, assignment, or otherwise as provided in chapter 46-12.2;

     (3) To pay expenses of the agency and the department in administering the revolving

fund. As part of the annual appropriations bill, the department shall set forth the gross amount of

expenses received from the agency and a complete, specific breakdown of the sums retained

and/or expended for administrative expenses;

     (4) To pay or provide for subsidy assistance equivalent to one third (1/3) of the market

rate or such other subsidy assistance as determined by the agency;

     (5) To provide a reserve for, or to otherwise secure, amounts payable by cities and towns

on loans and city and town obligations outstanding in the event of default thereof; amounts in any

account in the revolving fund may be applied to defaults on loans outstanding to the city or town

for which the account was established and, on a parity basis with all other accounts, to defaults on

any loans or city or town obligations outstanding; and

     (6) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

otherwise as provided in chapter 46-12.2, any bonds of the agency.

     (c) In addition to other remedies of the agency under any loan agreement or otherwise

provided by law, the agency may also recover from a city or town, in an action in superior court,

any amount due the agency together with any other actual damages the agency shall have

sustained from the failure or refusal of the city or town to make the payments or abide by the

terms of the loan agreement.

     (d) Within ninety (90) days after the end of each fiscal year, the agency shall submit an

annual report to the governor, the speaker of the house of representatives, the president of the

senate, and the secretary of state of its activities during that fiscal year. The report shall provide: a

summary of the agency's meetings including when the agency met, subjects addressed, decisions

rendered and meeting minutes; a summary of the agency's actions including a listing of rules,

regulations, or procedures adopted or amended, applications received for financial assistance for

contracts or agreements entered into, applications and intended use plans submitted to federal

agencies for capitalization grants, properties acquired or leased, and bonds issued; a synopsis of

any complaints, suspensions, or other legal matters related to the authority of the agency; a

consolidated financial statement of all funds received and disbursed by the agency including the

source of and recipient of the funds which shall be audited by an independent certified public

accountant firm; copies of audits or reports required under federal law; a listing of the staff and/or

consultants employed by the agency; a listing of findings and recommendation derived from

agency activities; and a summary of performance during the previous fiscal year including

accomplishments, shortcomings and remedies. The report shall be posted as prescribed in § 42-

20-8.2. The director of the department of administration shall be responsible for the enforcement

of this provision. The initial report shall be due no later than January 1, 2015.

 

     24-18-6. Payment of state funds. -- (a) Subject to the provisions of subsection (b), upon

the written request of the agency, the general treasurer shall pay to the agency, from time to time,

from the proceeds of any bonds or notes issued by the state for the purposes of this chapter or

funds otherwise lawfully payable to the agency for the purposes of this chapter, such amounts as

shall have been appropriated or lawfully designated for the revolving fund. All amounts so paid

shall be credited to the revolving fund in addition to any other amounts credited or expected to be

credited to the revolving fund.

     (b) The agency and the state shall enter into, execute, and deliver one or more agreements

setting forth or otherwise determining the terms, conditions, and procedures for, and the amount,

time, and manner of payment of, all amounts available from the state to the agency under this

section.

 

     24-18-7.  Procedure for project approval. -- (a) By September 1, 2013, the department

shall promulgate rules and regulations establishing the project evaluation criteria and the process

through which a city or town may submit an infrastructure plan. By December 31, 2013, the

agency shall promulgate rules and regulations to effectuate the provisions of this chapter which

may include, without limitation, forms for financial assistance applications, loan agreements, and

other instruments. All rules and regulations promulgated pursuant to this chapter shall be

promulgated in accordance with the provisions of chapter 42-35.

     (b) Beginning with the calendar year 2013 and for each calendar year thereafter, cities

and towns shall have from September 15th through October 15th to submit an infrastructure plan to

the department. In the event that October 15th is a Saturday, Sunday, or a general holiday as

enumerated in section 25-1-1, the deadline shall be extended through the next day that is not a

Saturday, Sunday, or a general holiday as enumerated in section 25-1-1.

     (c) By the end of each calendar year, the department shall evaluate all submitted

infrastructure plans and, in accordance with the project evaluation criteria, identify all eligible

projects, and after a public hearing, the department shall finalize and provide the agency and

statewide planning with a project priority list for the forthcoming calendar year.

     (d) By the end of each calendar year, the agency shall determine the maximum amount of

financial assistance available for the forthcoming calendar year, provided that it shall not exceed

an amount of twenty million dollars ($20,000,000); and provided further that the agency shall not

obligate more than fifty percent (50%) of available funding in any calendar year to any one city

or town unless there are no other eligible projects on the project priority list.

     (e) Upon issuance of the project priority list, the agency shall award financial assistance

to cities and towns for approved projects provided, however, that the agency does not exceed its

maximum annual amount of financial assistance. The agency may decline to award financial

assistance to an approved project which the agency determines will have a substantial adverse

effect on the interests of holders of bonds or other indebtedness of the agency or the interests of

other participants in the financial assistance program, or for good and sufficient cause affecting

the finances of the agency. All financial assistance shall be made pursuant to a loan agreement

between the agency and the city or town, acting by and through the officer or officers, board,

committee, or other body authorized by law, or otherwise its chief executive officer, according to

terms and conditions as determined by the agency, and each loan shall be evidenced and secured

by the issue to the agency of city or town obligations in fully marketable form in principal

amount, bearing interest at the rate or rates specified in the applicable loan agreement, and shall

otherwise bear such terms and conditions as authorized by this chapter and/or the loan agreement.

 

     24-18-8. Inspection of approved projects. -- For any approved project, the department

shall have the authority to inspect the construction and operation thereof to ensure compliance

with the provisions of this chapter.

 

     24-18-9. Expenses incurred by the department. -- In order to provide for the

expenses of the department under this chapter, the agency shall transfer to the department an

amount from the revolving fund equal to the amount authorized by the general assembly.

 

     24-18-10. Severability. -- If any provision of this chapter or the application of this

chapter to any person or circumstances is held invalid, the invalidity shall not affect other

provisions or applications of the chapter, which can be given effect without the invalid provision

or application, and to this end the provisions of this chapter are declared to be severable.

 

     SECTION 2. Sections 46-12.2-4, 46-12.2-14, 46-12.2-15, 46-12.2-16, 46-12.2-17, 46-

12.2-18, 46-12.2-19, 46-12.2-20, 46-12.2-21, 46-12.2-22 and 46-12.2-25 of the General Laws in

Chapter 46-12.2 entitled "Rhode Island Clean Water Finance Agency" are hereby amended to

read as follows:

 

     46-12.2-4. General powers and duties of agency. -- (a) The agency shall have all

powers necessary or convenient to carry out and effectuate the purposes and provisions of this

chapter and chapter 24-18, including without limiting the generality of the foregoing, the powers

and duties:

     (1) To adopt and amend bylaws, rules, regulations, and procedures for the governance of

its affairs, the administration of its financial assistance programs, and the conduct of its business;

     (2) To adopt an official seal;

     (3) To maintain an office at such place or places as it may determine;

     (4) To adopt a fiscal year;

     (5) To adopt and enforce procedures and regulations in connection with the performance

of its functions and duties;

     (6) To sue and be sued;

     (7) To employ personnel as provided in § 46-12.2-5, and to engage accounting,

management, legal, financial, consulting and other professional services;

     (8) Except as provided in this chapter, to receive and apply its revenues to the purposes of

this chapter without appropriation or allotment by the state or any political subdivision thereof;

     (9) To borrow money, issue bonds, and apply the proceeds thereof, as provided in this

chapter and chapter 24-18, and to pledge or assign or create security interests in revenues, funds,

and other property of the agency and otherwise as provided in this chapter and chapter 24-18, to

pay or secure the bonds; and to invest any funds held in reserves or in the water pollution control

revolving fund, the Rhode Island water pollution control revolving fund, the municipal road and

bridge fund established under chapter 24-18, or the local interest subsidy trust fund, or any

revenues or funds not required for immediate disbursement, in such investments as may be legal

investments for funds of the state;

     (10) To obtain insurance and to enter into agreements of indemnification necessary or

convenient to the exercise of its powers under this chapter and chapter 24-18;

     (11) To apply for, receive, administer, and comply with the conditions and requirements

respecting any grant, gift, or appropriation of property, services, or moneys;

     (12) To enter into contracts, arrangements, and agreements with other persons, and

execute and deliver all instruments necessary or convenient to the exercise of its powers under

this chapter and chapter 24-18; such contracts and agreements may include without limitation,

loan agreements with local governmental units, capitalization grant agreements, intended use

plans, operating plans, and other agreements and instruments contemplated by title VI of the

Clean Water Act, 33 U.S.C. § 1381 et seq., or this chapter, agreement and instruments

contemplated by chapter 24-18, grant agreements, contracts for financial assistance or other forms

of assistance from the state or the United States, and trust agreements and other financing

agreements and instruments pertaining to bonds;

     (13) To authorize a representative to appear on its own behalf before other public bodies,

including, without limiting the generality of the foregoing, the congress of the United States, in

all matters relating to its powers and purposes;

     (14) To provide financial assistance to local governmental units to finance costs of

approved projects, and to acquire and hold local governmental obligations at such prices and in

such manner as the agency shall deem advisable, and sell local governmental obligations acquired

or held by it at prices without relation to cost and in such manner as the agency shall deem

advisable, and to secure its own bonds with such obligations all as provided in this chapter and

chapter 24-18;

     (15) To establish and collect such fees and charges as the agency shall determine to be

reasonable;

     (16) To acquire, own, lease as tenant, or hold real, personal or mixed property or any

interest therein for its own use; and to improve, rehabilitate, sell, assign, exchange, lease as

landlord, mortgage, or otherwise dispose of or encumber the same;

     (17) To do all things necessary, convenient, or desirable for carrying out the purposes of

this chapter and chapter 24-18 or the powers expressly granted or necessarily implied by this

chapter and chapter 24-18;

     (18) To conduct a training course for newly appointed and qualified members and new

designees of ex-officio members within six (6) months of their qualification or designation. The

course shall be developed by the executive director, approved by the board of directors, and

conducted by the executive director. The board of directors may approve the use of any board of

directors or staff members or other individuals to assist with training. The training course shall

include instruction in the following areas: the provisions of chapters 46-12.2, 42-46, 36-14, and

38-2; and the agency's rules and regulations. The director of the department of administration

shall, within ninety (90) days of the effective date of this act [July 15, 2005], prepare and

disseminate, training materials relating to the provisions of chapters 42-46, 36-14 and 38-2; and

     (19) Upon the dissolution of the water resources board (corporate) pursuant to § 46-15.1-

22, to have all the powers and duties previously vested with the water resources board

(corporate), as provided pursuant to chapter 46-15.1.

     (20) To meet at the call of the chair at least eight (8) times per year. All meetings shall be

held consistent with chapters 42-46.

     (b) Notwithstanding any other provision of this chapter, the agency shall not be

authorized or empowered:

     (1) To be or to constitute a bank or trust company within the jurisdiction or under the

control of the department of banking and insurance of the state, or the commissioner thereof, the

comptroller of the currency of the United States of America, or the Treasury Department thereof;

or

     (2) To be or constitute a bank, banker or dealer in securities within the meaning of, or

subject to the provisions of, any securities, securities exchange, or securities dealers' law of the

United States or the state.

 

     46-12.2-14. Bonds of the agency. -- (a) The agency may provide by resolution of the

board of directors for the issuance, from time to time, of bonds of the agency for any of its

corporate purposes, including those set forth in chapter 24-18, or for the borrowing of money in

anticipation of the issuance of the bonds. Bonds issued by the agency may be issued as general

obligations of the agency or as special obligations payable solely from particular revenues or

funds as may be provided for in any trust agreement or other agreement securing bonds. The

agency may also provide by resolution of the board of directors for the issuance, from time to

time, of temporary notes in anticipation of the revenues to be collected or received by the agency,

including, without limitation, in anticipation of any payments to the agency from the state

pursuant to section 46-12.2-7, or in anticipation of the receipt of other grants or aid. The issue of

notes shall be governed by the provisions of this chapter and chapter 24-18, as applicable,

relating to the issue of bonds of the agency other than temporary notes as this chapter these

chapters may be applicable; provided, however, that notes issued in anticipation of revenues shall

mature no later than one year from their respective dates, or the date of expected receipt of the

revenues, if later, and notes issued in anticipation of grants, or other aid and renewals thereof,

shall mature no later than six (6) months after the expected date of receipt of the grant or aid.

      (b) The bonds of each issue shall be dated, may bear interest at such rate or rates,

including rates variable from time to time as determined by such index, banker's loan rate, or

other method determined by the agency, and shall mature or otherwise be payable at such time or

times, as may be determined by the agency, and may be made redeemable before maturity at the

option of the agency or the holder thereof at such price or prices and under such terms and

conditions as may be fixed by the agency. The agency shall determine the form of bonds, and the

manner of execution of the bonds, and shall fix the denomination or denominations of the bonds,

and the place or places of payment of principal, redemption premium, if any, and interest, which

may be paid at any bank or trust company within or without the state. In case any officer whose

signature or a facsimile of whose signature shall appear on any bonds shall cease to be the officer

before the delivery thereof, the signature or facsimile shall nevertheless be valid and sufficient for

all purposes as if the officer had remained in office until delivery. The agency may provide for

authentication of bonds by a trustee, fiscal agent, registrar, or transfer agency. Bonds may be

issued in bearer or in registered form, or both, and, if notes, may be made payable to the bearer or

to order, as the agency may determine. The agency may also establish and maintain a system of

registration for any bonds whereby the name of the registered owner, the rights evidenced by the

bonds, the transfer of the bonds, and the rights and other similar matters, are recorded in books or

other records maintained by or on behalf of the agency, and no instrument evidencing the bond or

rights need be delivered to the registered owner by the agency. A copy of the books or other

records of the agency pertaining to any bond registered under a registration system certified by an

authorized officer of the agency or by the agent of the agency maintaining the system shall be

admissible in any proceeding without further authentication. The board of directors may by

resolution delegate to any member or officer of the agency, or any combination thereof, the

power to determine any of the matters set forth in this section. In the discretion of the agency,

bonds of the agency may be issued with such terms as will cause the interest thereon to be subject

to federal income taxation. The agency may sell its bonds in such manner, either at public or

private sale, for the price, at the rate or rates of interest, or at discount in lieu of interest, as it may

determine will best effect the purposes of this chapter or chapter 24-18, as applicable.

      (c) The agency may issue interim receipts or temporary bonds, exchangeable for

definitive bonds, when the bonds shall have been executed and are available for delivery. The

agency may also provide for the replacement of any bonds which shall have become mutilated or

shall have been destroyed or lost. The agency, by itself or through such agency as it may select,

may purchase and invite offers to tender for purchase any bonds of the agency at any time

outstanding; provided, however, that no purchase by the agency shall be made at a price,

exclusive of accrued interest, if any, exceeding the principal amount thereof or, if greater, the

redemption price of the bonds when next redeemable at the option of the agency, and may resell

any bonds so purchased in such manner and for such price as it may determine will best effect the

purposes of this chapter or chapter 24-18, as applicable.

      (d) In the discretion of the board of directors, any bonds issued under this section may be

secured by a trust agreement in such form and executed in such manner as may be determined by

the board of directors, between the agency and the purchasers or holders of the bonds, or between

the agency and a corporate trustee which may be any trust company or bank having the powers of

a trust company within or without the state. The trust agreement may pledge or assign, in whole

or in part, any loan agreements and local governmental obligations, and the revenues, funds, and

other assets or property held or to be received by the agency, including without limitation all

moneys and investments on deposit from time to time in the water pollution control revolving

fund, the Rhode Island water pollution control revolving fund, and the local interest subsidy trust

fund, or the municipal road and bridge revolving fund, as applicable, and any contract or other

rights to receive the same, whether then existing or thereafter coming into existence and whether

then held or thereafter acquired by the agency, and the proceeds thereof. The trust agreement may

contain such provisions for protecting and enforcing the rights, security, and remedies of the

bondholders as may be reasonable and proper including, without limiting the generality of the

foregoing, provisions defining defaults and providing for remedies in the event thereof which

may include the acceleration of maturities, restrictions on the individual right of action by

bondholders, and covenants setting forth the duties of and limitations on the agency in relation to

the custody, safeguarding, investment, and application of moneys, the enforcement of loan

agreements and local governmental obligations, the issue of additional or refunding bonds, the

fixing, revision, charging, and collection of charges, the use of any surplus bond proceeds, the

establishment of reserves, and the making and amending of contracts.

      (e) In the discretion of the board of directors, any bonds issued under authority of this

chapter or chapter 24-18 may be issued by the agency in the form of lines of credit or other

banking arrangements under terms and conditions, not inconsistent with this chapter or chapter

24-18, and under such agreements with the purchasers or makers thereof or any agent or other

representative of such purchasers or makers, as the board of directors may determine to be in the

best interests of the agency. In addition to other security provided herein or otherwise by law,

bonds issued by the agency under any provision of this chapter or chapter 24-18 may be secured,

in whole or in part, by financial guarantees, by insurance, or by letters or lines of credit issued to

the agency or a trustee or any other person, by any bank, trust company, insurance or surety

company, or other financial institution, within or without the state, and the agency may pledge or

assign, in whole or in part, any loan agreements and local governmental obligations, and the

revenues, funds, and other assets and property held or to be received by the agency, and any

contract or other rights to receive the same, whether then existing or thereafter coming into

existence and whether then held or thereafter acquired by the agency, and the proceeds thereof, as

security for the guarantees or insurance or for the reimbursement by the agency to any issuer of

the line or letter of credit.

      (f) It shall be lawful for any bank or trust company to act as a depository or trustee of the

proceeds of bonds, revenues, or other moneys under a trust agreement of the agency, and to

furnish indemnification and to provide security as may be required by the agency. It is hereby

declared that any pledge or assignment made by the agency under this chapter or chapter 24-18 is

an exercise of the governmental powers of the agency, and loan agreements, local governmental

obligations, revenues, funds, assets, property, and contract or other rights to receive the same and

the proceeds thereof, which are subject to the lien of a pledge or assignment created under this

chapter or chapter 24-18, shall not be applied to any purposes not permitted by the pledge or

assignment.

      (g) Any holder of a bond issued by the agency under the provisions of this chapter or

chapter 24-18 and any trustee or other representative under a trust agreement securing the trustee

or representative, except to the extent the rights herein given may be restricted by the trust

agreement, may bring suit upon the bonds in the superior court and may, either at law or in

equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, protect and

enforce any and all rights under the laws of the state or granted hereunder or under the trust

agreement, and may enforce and compel performance of all duties required by this chapter,

chapter 24-18, or by the trust agreement, to be performed by the agency or by any officer thereof.

 

     46-12.2-15. Refunding bonds. -- The agency may issue refunding bonds for the purpose

of paying any of its bonds, issued pursuant to this chapter or chapter 24-18, at or prior to maturity

or upon acceleration or redemption or purchase and retirement. Refunding bonds may be issued at

such times at or prior to the maturity, redemption, or purchase and retirement of the refunded

bonds as the board of directors deems to be in the interest of the agency. Refunding bonds may be

issued in sufficient amounts to pay or provide for payment of the principal of the bonds being

refunded, together with any redemption premium thereon, any interest or discount accrued or to

accrue to the date of payment of the bonds, the costs of issuance of the refunding bonds, the

expenses of paying, redeeming, or purchasing the bonds being refunded, the costs of holding and

investing proceeds of refunding bonds pending payment, redemption, or purchase and reserves

for debt service or other expenses from the proceeds of refunding bonds as may be required by a

trust agreement securing the bonds. Pending application, the proceeds of the refunding bonds may

be placed in escrow. The issue and sale of refunding bonds, the maturities, and other details

thereof, the security therefor, the rights of the holders thereof, and the rights, duties, and

obligations of the agency in respect of the same shall be governed by the provisions of this

chapter and chapter 24-18, as applicable, relating to the issue of bonds other than refunding bonds

insofar as this chapter these chapters may be applicable.

 

     46-12.2-16. Bonds eligible for investment. -- Bonds issued by the agency under this

chapter or chapter 24-18 and local governmental obligations issued hereunder are hereby made

securities in which all public officers and agencies of the state and its political subdivisions, all

insurance companies, trust companies in their commercial departments, savings banks,

cooperative banks, banking associations, investment companies, executors, administrators,

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

belonging to them. The bonds and local governmental obligations are hereby made securities

which may properly be deposited with and received by any state or municipal officer of any

agency or political subdivision of the state for any purpose for which the deposit of bonds or

obligations of the state or any political subdivision is now or may hereafter be authorized by law.

 

     46-12.2-17. No additional consent required. -- Except as provided in this section, bonds

and local governmental obligations may be issued under this chapter or chapter 24-18 without

obtaining the consent of any executive office, department, division, commission, board, bureau,

or agency of the state or any political subdivision thereof, and without any other proceedings or

the happening of any condition, or acts other than those proceedings, conditions, or acts which are

specifically required therefor hereunder or under any applicable bond act, and the validity of and

security for any bonds issued by the agency pursuant to this chapter or chapter 24-18, and any

local governmental obligations issued in accordance herewith, shall not be affected by the

existence or nonexistence of any consent or other proceedings, conditions, or acts. Nothing in this

chapter or chapter 24-18 shall exempt the agency from the provisions of chapter 10.1 of title 42

entitled "Public Finance Management Board," and the Narragansett Bay water quality

management district commission shall not issue any bonds, notes, or other indebtedness without

the approval of the division of public utilities as required by section 39-3-15.

 

     46-12.2-18. Bonds not obligations of the state. -- Bonds issued by the agency under the

provisions of this chapter or chapter 24-18 shall not be deemed to be a debt or a pledge of the

faith and credit of the state or of any of its political subdivisions, but shall be payable solely from

the revenues, funds, assets, and other property of the agency from which they are made payable

pursuant to this chapter or chapter 24-18. Bonds issued by the agency under the provisions of this

chapter and chapter 24-18 shall recite that neither the state nor any political subdivisions thereof

shall be obligated to pay the bonds, and that neither the faith and credit nor the taxing power of

the state or of any political subdivision thereof is pledged to the payment of the principal of or

interest on the bonds. Further, every bond shall recite whether it is a general obligation of the

agency, or a special obligation thereof payable solely from particular revenues, funds, assets, or

other property pledged to its payment.

 

     46-12.2-19. Lien status -- Recording. -- (a) Notwithstanding any provision of any other

law, including the Uniform Commercial Code:

      (1) Any pledge or assignment of revenues of any kind, funds, loan agreements, local

governmental obligations, property, or assets made pursuant to the provisions of this chapter or

chapter 24-18 by the agency, or any local governmental unit hereunder, shall be valid and binding

against all parties having claims of any kind in tort, contract, or otherwise, whether or not the

parties have notice thereof, and shall be deemed continuously perfected from the time it is made;

      (2) No filing of any kind with respect to a pledge or assignment need be made under the

Uniform Commercial Code, as amended, or otherwise;

      (3) Unless otherwise provided in the loan agreement, a pledge of revenues of any kind

shall be deemed to include a pledge of any accounts or general intangibles from which the

pledged revenues are derived, whether existing at the time of the pledge or thereafter coming into

existence, and whether held at the time of the pledge or thereafter acquired by the agency or local

governmental unit, and the proceeds of the accounts or general intangibles; and

      (4) The pledge of revenues of any kind, accounts, and general intangibles shall be

subject to the lien of the pledge without delivery or segregation, and the lien of the pledge shall

be valid and binding against all parties having claims of contract or tort or otherwise against the

agency or local governmental unit.

      (b) A pledge of revenues of any kind under this chapter or chapter 24-18 shall constitute

a sufficient appropriation thereof for the purposes of any provision for appropriation, and the

revenues may be applied as required by the pledge without further appropriation.

      (c) For the purposes of this section, the word "pledge" shall be construed to include the

grant of a security interest under the Uniform Commercial Code.

 

     46-12.2-20. Bonds and local government obligations as investment securities. --

Notwithstanding any of the provisions of this chapter, chapter 24-18, or any recitals in any bonds

or local governmental obligations issued hereunder, all bonds and local governmental obligations

shall be deemed to be investment securities under the Uniform Commercial Code.

 

     46-12.2-21. Proceeds received by agency as trust funds. -- All moneys received by the

agency pursuant to the provisions of this chapter or chapter 24-18, whether as proceeds from the

issue of bonds or as revenues or otherwise, shall be deemed to be trust funds to be held and

applied solely as provided in this chapter these chapters.

 

     46-12.2-22. Tax exemption. -- Bonds issued by the agency and local governmental

obligations issued by any local governmental unit in accordance with this chapter or chapter 24-

18, their transfer and the income therefrom, including any profit made on the sale thereof, shall, at

all times, be exempt from taxation by and within the state. The agency shall not be required to

pay any taxes, assessments, or excises upon its income, existence, operation, or property.

 

     46-12.2-25. Supplemental powers -- Inconsistent laws. -- The provisions of this chapter

and chapter 24-18 shall be deemed to provide an additional, alternative, and complete method for

accomplishing the purposes of this chapter these chapters, and shall be deemed and construed to

be supplemental and additional to, and not in derogation of, powers conferred upon the agency,

the department, and local governmental units by other laws; provided, however, that insofar as

the provisions of this chapter these chapters are inconsistent with the provisions of any general or

special law, municipal charter, administrative order or regulations, the provisions of this chapter

these chapters shall be controlling. Any amounts appropriated by this chapter these chapters to

the agency or the department shall be in addition to any other amounts appropriated to the agency

or the department by any other law.

 

     SECTION 3. This article shall take effect upon passage.