Title 45
Towns and Cities

Chapter 37.1
Industrial Facilities Corporation

§ 45-37.1-6. Bonds and notes of the corporation.

(a) The corporation is authorized to issue its negotiable revenue bonds and notes from time to time for any of its corporate purposes. All bonds and notes issued by the corporation are payable solely out of the revenues and receipts derived from the leasing or sale by the corporation of its projects or of any thereof, or from any other financing arrangement with respect thereto, as may be designated in the proceedings of the corporation under which the bonds or notes are authorized to be issued. The bonds and notes may be executed and delivered by the corporation at any time and, from time to time, may be in a form and denominations and of a tenor and maturities, may be in bearer form or in registered form, as to principal and interest or as to principal alone, may be payable in installments and at a time or times may be payable at places whether within or without the state, may bear interest at a rate or rates payable at a time or times and at a place or places and evidenced in a manner, and may contain provisions not inconsistent herewith, all as are provided in the proceedings of the corporation under which the bonds are authorized to be issued; provided, however, that bonds of the corporation are payable not more than forty (40) years from their date of issue and notes are payable not more than ten (10) years from their date of issue. If deemed advisable by the corporation, there may be retained in the proceedings, under which any bonds or notes of the corporation are authorized to be issued, an option to redeem all or any part of the bonds or notes as may be specified in the proceedings, at a price or prices and after notice or notices and on terms and conditions as may be stated in the proceedings and as may be recited on the face of the bonds or notes, but nothing herein contained shall be construed to confer on the corporation any right or option to redeem any bonds or notes, except as may be provided in the proceedings under which they are issued. Any bonds or notes of the corporation may be sold at a price or prices, at public or private sale, in a manner and, from time to time, as may be determined by the corporation, and the corporation may pay all expenses, premiums, and commissions which it may deem necessary or advantageous in connection with their issuance and sale. Any moneys of the corporation, including proceeds from the sale of any bonds or notes, and revenues, receipts, and income from any of its projects, may be invested and reinvested in obligations, securities, and other investments that are provided in the resolution or resolutions under which the bonds or notes are authorized.

(b) Issuance by the corporation of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the same project or any other projects, but the proceedings, whereunder any subsequent bonds or notes may be issued, shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes, unless in the proceedings authorizing the prior issue, the right is reserved to issue subsequent bonds or notes on a parity with the prior issue.

(c) Without limiting the generality of the preceding, the corporation may issue its bonds or notes to finance any industrial facilities which may have been initiated by the Rhode Island industrial facilities corporation prior to February 27, 1967, and without regard to the stage of completion of any of the industrial facilities.

(d) The corporation is authorized to provide for the issuance of its revenue bonds or notes for the purpose of refunding any revenue bonds or notes of the corporation then outstanding, including the payment of any redemption premium on the bonds or notes and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the revenue bonds or notes, and, if deemed advisable by the corporation, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion of it.

(e) The proceeds of the revenue bonds or notes issued for the purpose of refunding outstanding revenue bonds or notes may, in the discretion of the corporation, be applied to the purchase or retirement at maturity or redemption of the outstanding revenue bonds or notes either on their earliest or any subsequent redemption date, and may, pending the application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on a date that may be determined by the corporation.

(f) The escrowed proceeds, pending that use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing at an appropriate time or times to assure the prompt payment, as to principal, interest, and redemption premium, if any, on the outstanding revenue bonds or notes to be refunded. The interest, income, and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding revenue bonds or notes to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income and profits, if any, earned or realized on the investments, may be returned to the corporation for use by it in any lawful manner. The portion of the proceeds of any revenue bonds or notes issued for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by direct obligations of or guaranteed by the United States of America, maturing not later than the time or times when proceeds will be needed for the purpose of paying all or any part of the cost. The interest, income and profits, if any, earned or realized on the investments may be applied to the payment of all or any part of that cost or may be used by the corporation in any lawful manner.

(g) All the revenue bonds or notes shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and to the same extent as any other revenue bonds and notes issued pursuant to this chapter. All revenue bonds and notes authorized under this section and the interest coupons if any, applicable thereto, are hereby made and shall be construed to be negotiable instruments.

(h) Money borrowed by the corporation for the purpose of providing temporary financing of a project or projects or combination of projects pending the issuance of bonds or other notes shall be evidenced by notes or other obligations. The principal and interest of all notes or other obligations of the corporation so issued under the provisions of this section are payable from the following:

(1) From the proceeds of bonds subsequently issued; or

(2) From the proceeds of subsequent borrowings which comply with the provisions of this section.

(i) Notwithstanding any other provisions of this chapter, all of these notes are deemed to be negotiable instruments under the laws of the state subject only to the provisions for registration contained therein. The notes or other obligations or any issue of them shall be in a form and contain any other provisions that the corporation may determine, and the notes or resolutions or proceedings authorizing the notes or other obligations or any issue of them may contain, in addition to any provisions, conditions, covenants, or limitations which the corporation is authorized to include in any resolution or resolutions authorizing bonds or notes or on any trust indenture relating to them. The corporation may issue notes or other obligations in a manner, either publicly or privately, on terms that it may determine to be in its best interests. The notes or other obligations may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, body, or agency of the state, without any other proceedings or the happening of any conditions or things other than those proceedings, conditions, or things which are specifically required by this chapter and by the provisions and resolutions authorizing the issuance of the notes or obligations.