TITLE 42
State Affairs and Government

CHAPTER 42-64
Rhode Island Commerce Corporation

SECTION 42-64-17


§ 42-64-17. Security for bonds or notes.

(a) The principal of and interest on any bonds or notes issued by the Rhode Island commerce corporation may be secured by a pledge of any revenues and receipts of the corporation and may be secured by a mortgage or other instrument covering all or any part of one or more projects, including all or part of any additions, improvements, extensions to, or enlargements of projects thereafter made.

(b) Bonds or notes issued for the acquisition, construction, reconstruction, rehabilitation, development, or improvement of one or more projects may also be secured by an assignment of leases of, or mortgages on, or contracts of sale or loan agreements with regard to the project or projects and by an assignment of the revenues, receipts, payments, or repayments derived by the corporation from those leases, mortgages, sales agreements, or loan agreements.

(c) The resolution under which the bonds or notes are authorized to be issued and any mortgage, lease, sales agreement, or loan agreement, or other instrument may contain agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents, payments or repayments or other revenues, including moneys received in repayment of loans, and interest on the loans, the creation and maintenance of special funds from rents or other revenues and the rights and remedies available in the event of default, all as the corporation shall deem advisable.

(d) Each pledge, agreement, mortgage, or other instrument made for the benefit or security of any of the bonds or notes of the corporation shall be valid and binding from the time the pledge is made and shall continue in effect until the principal of and interest on the bonds or notes for the benefit of which the pledge was made has been fully paid, or until provision has been made for the payment in the manner provided in the resolutions under which those bonds or notes were authorized. The revenues, moneys, or property pledged by the corporation shall immediately be subject to the lien of that pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

(e) The corporation may provide in any proceedings under which bonds or notes may be authorized that any project or part of a project may be constructed, reconstructed, rehabilitated, or improved by the corporation, or any lessee, vendee, obligor, or any designee of the corporation and may also provide in those proceedings for the time and manner of and requisitions for disbursements to be made for the cost of the construction, and for any certificates and approvals of construction and disbursements that the corporation shall deem necessary and provide for in those proceedings.

(f) Any resolution under which bonds or 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 those properties, rights, powers, and duties in trust that the corporation may determine, including any or all of the rights, powers, and duties of the trustee appointed by the holders of any issue of bonds or notes pursuant to § 42-64-25, in which event the provisions of § 42-64-25 authorizing the appointment of a trustee by holders of bonds or notes shall not apply.

History of Section.
(P.L. 1974, ch. 100, § 14; P.L. 1983 (S.S.), ch. 332, art. III, § 3; P.L. 2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.)