TITLE 46
Waters and Navigation

CHAPTER 46-12.2
Rhode Island Infrastructure Bank

SECTION 46-12.2-14


§ 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 this chapter and chapter 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, 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 § 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, as applicable, relating to the issue of bonds of the agency other than temporary notes as 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 18 of title 24, 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, 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, local governmental obligations and non-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, local governmental obligations and non-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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39 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, local governmental obligations and non-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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39 is an exercise of the governmental powers of the agency, and loan agreements, local governmental obligations and non-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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39 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 19.16 of title 23, chapter 18 of title 24, and chapter 26.5 of title 39, or by the trust agreement, to be performed by the agency or by any officer thereof.

History of Section.
(P.L. 1989, ch. 303, § 2; P.L. 2013, ch. 144, art. 20, § 2; P.L. 2015, ch. 141, art. 14, § 17.)