Public Finance

Bonded Indebtedness of State

SECTION 35-8-19

§ 35-8-19. Substitution of coupon bond for registered bond or registered bond for coupon bond.

Whenever the holder of any registered or coupon bond of this state which is now or shall hereafter be issued or outstanding shall desire to substitute the registered bond for a coupon bond, or the coupon bond for a registered bond, he or she shall present the coupon bond to the general treasurer with a request in writing for the substitution for the bond of one or more other bonds. The general treasurer, upon payment to him or her for the use of the state of such a sum as he or she deems necessary to cover the actual expense involved and under such regulations and restrictions as he or she may prescribe, is authorized and empowered to accept the bond so presented and to issue and deliver in substitution thereof one or more new bonds of denominations of one thousand dollars ($1,000), five thousand dollars ($5,000), ten thousand dollars ($10,000), or fifty thousand dollars ($50,000); provided, that the aggregate face value of the new bonds shall not exceed the face value of the bond so presented; provided, further, that if the new bonds bear coupons, the coupons shall cover only future interest payments. The new bonds shall in all substantial respect (except the denomination thereof) be similar to the bond so presented as to the date of maturity, interest rate, and dates of interest payments; and every new bond so issued in substitution shall be as valid for all purposes as the bond so presented for substitution, notwithstanding the fact that the number thereof or the signatures thereon or the denomination thereof may be different from the bond so presented for substitution. In every case the general treasurer shall mutilate the bond so presented for substitution and shall make a record of the date, number, and amount thereof, and of the date, number, and amount of every new bond issued in substitution. Thereafter the mutilated bond shall be kept in the files of the general treasurer or may be destroyed in the same manner as provided in § 35-8-2. Every new bond issued in substitution shall be signed by the general treasurer and by the secretary of state.

History of Section.
(G.L. 1938, ch. 107, § 15; P.L. 1940, ch. 883, § 1; P.L. 1944, ch. 1521, § 1; G.L. 1956, § 35-8-19.)