Title 35
Public Finance

Chapter 12
University of Rhode Island Research Corporation

R.I. Gen. Laws § 35-12-9

§ 35-12-9. Security for notes.

(a) The principal of and interest on any notes issued by the corporation may be secured by a pledge or assignment of any revenues and receipts of the corporation and may be secured by a security interest or other instrument covering all or any part of one or more accounts acquired by the corporation pursuant to the provisions of this chapter.

(b) The resolution under which the notes are authorized to be issued and the security interest or other instrument may contain agreements and provisions respecting the servicing of the loans covered thereby, the fixing and collection of payments or repayments or other revenues therefrom, the creation and maintenance of special funds from these revenues, and the rights and remedies available in the event of default, all as the corporation shall deem advisable.

(c) Each pledge, assignment, agreement, security interest, or other instrument made for the benefit or security of any of the notes of the corporation shall continue in effect until the principal of and interest on the notes for the benefit of which the notes was made shall have been fully paid, or until provision shall have been made for payment in the manner provided in the resolution under which the notes were authorized.

(d) Any pledge made by the corporation shall be valid and binding from the time it is made. The money, accounts, or property pledged and thereafter received by the corporation shall immediately be subject to the lien of the pledge without physical delivery or further act. The lien of the pledge shall be valid and binding against all parties having a claim in tort, contract, or otherwise against the corporation, irrespective of whether the parties have notice of the claim. Neither the resolution nor any instrument by which a pledge is created need be recorded.

(e) Any resolution under which notes of the corporation are authorized to be issued (and any trust indenture established thereby) may contain provisions for vesting in a trustee or trustees such properties, rights, powers, and duties in trust as the corporation may determine.

History of Section.
P.L. 1982, ch. 324, § 1.