ARTICLE
20
RELATING TO
SECTION 1. Title 24 of the General Laws entitled
"HIGHWAYS" is hereby amended by
adding thereto the following chapter:
CHAPTER
18
MUNICIPAL
ROAD AND BRIDGE REVOLVING FUND
24-18-1.
Short title. -- This act shall be known and may
be cited as the "
and Bridge Revolving Fund Act of 2013."
24-18-2.
Legislative findings. -- The general assembly
finds and declares that:
(1) Transportation
plays a critical role in enabling economic activity in the state of Rhode
Island;
(2) Cities and towns
can lower the costs of borrowing for road and bridge projects
through cooperation with the Rhode Island Clean Water Finance
Agency;
(3) The Clean Water
and Drinking Water Fund programs administered by the Rhode
Island Clean Water Finance Agency benefit from the
highest bond rating of any public entity in
the state of
(4) Greater
coordination among cities and towns will enable more efficient allocation of
infrastructure resources by the state of
24-18-3.
Definitions. -- As used in this chapter, the
following terms, unless the context
requires a different interpretation, shall have the following
meanings:
(1) "Agency"
means the
46-12.2;
(2) "Annual
construction plan" means the finalized list of approved projects to
commence
construction each calendar year;
(3) "Approved
project" means any project approved by the agency for financial
assistance;
(4)
"Department" means the department of transportation, or, if the
department shall be
abolished, the board, body, or commission succeeding to the
principal functions thereof or upon
whom the powers given by chapter 5 of title 37 to the
department shall be given by law.
(5) "Eligible
project" means an infrastructure plan, or portion of an infrastructure
plan,
that meets the project evaluation criteria;
(6) "Financial
assistance" means any form of financial assistance other than grants
provided by the agency to a city or town in accordance with
this chapter for all or any part of the
cost of an approved project, including, without
limitation, temporary and permanent loans, with
or without interest, guarantees, insurance, subsidies
for the payment of debt service on loans,
lines of credit, and similar forms of financial assistance;
(7)
"Infrastructure plan" means a project proposed by a city or town that
would make
capital improvements to roads, bridges and appurtenances
thereto consistent with project
evaluation criteria;
(8) "Market
rate" means the rate the city or town would receive in the open market at
the
time of the original loan agreement as determined by the
agency in accordance with its rules and
regulations;
(9) "Project
evaluation criteria" means the criteria used by the department to evaluate
infrastructure plans and rank eligible projects and shall include
the extent to which the project
generates economic benefits, the extent to which the project
would be able to proceed at an earlier
date, the likelihood that the project would provide
mobility benefits, the cost effectiveness of the
project, the likelihood that the project would increase
safety, and the project’s readiness to
proceed within the forthcoming calendar year;
(10) "Project
priority list" means the list of eligible projects ranked in the order in
which
financial assistance shall be awarded by the agency pursuant to
section 7 of this chapter;
(11) "Revolving
fund" means the municipal road and bridge revolving fund established
under section 4 of this chapter; and
(12) "Subsidy
assistance" means credit enhancements and other measures to reduce the
borrowing costs for a city or town.
24-18-4.
Establishment of the municipal road and bridge revolving fund.
-- (a) There
is hereby established a municipal road and bridge
revolving fund. The agency shall establish and
set up on its books the revolving fund, to be held in
trust and to be administered by the agency
solely as provided in this chapter and in any trust
agreement securing bonds of the agency. The
agency shall deposit the following monies into the fund:
(1) Amounts
appropriated or designated to the agency by the state for the purposes of this
chapter;
(2) Loan repayments
and other payments received by the agency pursuant to loan
agreements with cities and towns executed in accordance with
this chapter;
(3) Investment
earnings on amounts credited to the fund;
(4) Proceeds of bonds
of the agency to the extent required by any trust agreement for
such bonds;
(5) Administrative
fees levied by the agency;
(6) Other amounts
required by provisions of this chapter or agreement, or any other law
or any trust agreement pertaining to bonds to be
credited to the revolving fund; and
(7) Any other funds
permitted by law which the agency in its discretion shall determine
to credit thereto.
(b) The agency shall
establish and maintain fiscal controls and accounting procedures
conforming to generally accepted government accounting standards
sufficient to ensure proper
accounting for receipts in and disbursements from the revolving
fund.
24-18-5.
Administration. -- (a) The
agency shall have all the powers necessary and
convenient to carry out and effectuate the purposes and
provisions of this chapter including,
without limiting the generality of the preceding statement,
the authority:
(1) To receive and
disburse such funds from the state as may be available for the purpose
of the revolving fund subject to the provisions of this
chapter;
(2) To make and enter
into binding commitments to provide financial assistance to local
cities and towns from amounts on deposit in the revolving
fund;
(3) To enter into
binding commitments to provide subsidy assistance for loans and city
and town obligations from amounts on deposit in the
revolving fund;
(4) To levy
administrative fees on cities and towns as necessary to effectuate the
provisions of this chapter, provided the fees have been
previously authorized by an agreement
between the agency and the city or town;
(5) To engage the
services of third-party vendors to provide professional services; and
(6) To establish one
or more accounts within the revolving fund; and
(7) Such other
authority as granted to the agency under chapter 46-12.2.
(b) Subject to the
provisions of this chapter, to the provisions of any agreement with the
state authorized by section 24-18-6, and to any agreements
with the holders of any bonds of the
agency or any trustee therefor,
amounts held by the agency for the account of the revolving fund
shall be applied by the agency, either by direct
expenditure, disbursement, or transfer to one or
more other funds and accounts held by the agency or
maintained under any trust agreement
pertaining to bonds, either alone or with other funds of the
agency, to the following purposes:
(1) To provide
financial assistance to cities and towns to finance costs of approved
projects, and to refinance the costs of the projects, subject
to such terms and conditions, if any, as
are determined by the department and/or the agency in
accordance with section 24-18-7;
(2) To fund reserves
for bonds of the agency and to purchase insurance and pay the
premiums therefor, and pay fees and
expenses of letters or lines of credit and costs of
reimbursement to the issuers thereof for any payments made thereon
or on any insurance, and to
otherwise provide security for, and a source of payment for
obligations of the agency, by pledge,
lien, assignment, or otherwise as provided in chapter
46-12.2;
(3) To pay expenses
of the agency and the department in administering the revolving
fund. As part of the annual appropriations bill, the
department shall set forth the gross amount of
expenses received from the agency and a complete, specific
breakdown of the sums retained
and/or expended for administrative expenses;
(4) To pay or provide
for subsidy assistance equivalent to one third (1/3) of the market
rate or such other subsidy assistance as determined by the
agency;
(5) To provide a reserve
for, or to otherwise secure, amounts payable by cities and towns
on loans and city and town obligations outstanding in
the event of default thereof; amounts in any
account in the revolving fund may be applied to defaults on
loans outstanding to the city or town
for which the account was established and, on a parity
basis with all other accounts, to defaults on
any loans or city or town obligations outstanding; and
(6) To provide a
reserve for, or to otherwise secure, by pledge, lien, assignment, or
otherwise as provided in chapter 46-12.2, any bonds of the
agency.
(c) In addition to
other remedies of the agency under any loan agreement or otherwise
provided by law, the agency may also recover from a city or
town, in an action in superior court,
any amount due the agency together with any other actual
damages the agency shall have
sustained from the failure or refusal of the city or town to
make the payments or abide by the
terms of the loan agreement.
(d) Within ninety
(90) days after the end of each fiscal year, the agency shall submit an
annual report to the governor, the speaker of the house of
representatives, the president of the
senate, and the secretary of state of its activities during
that fiscal year. The report shall provide: a
summary of the agency's meetings including when the agency
met, subjects addressed, decisions
rendered and meeting minutes; a summary of the agency's
actions including a listing of rules,
regulations, or procedures adopted or amended, applications
received for financial assistance for
contracts or agreements entered into, applications and intended
use plans submitted to federal
agencies for capitalization grants, properties acquired or
leased, and bonds issued; a synopsis of
any complaints, suspensions, or other legal matters
related to the authority of the agency; a
consolidated financial statement of all funds received and
disbursed by the agency including the
source of and recipient of the funds which shall be audited
by an independent certified public
accountant firm; copies of audits or reports required under
federal law; a listing of the staff and/or
consultants employed by the agency; a listing of findings and
recommendation derived from
agency activities; and a summary of performance during the
previous fiscal year including
accomplishments, shortcomings and remedies. The report shall be
posted as prescribed in § 42-
20-8.2. The director of the department of
administration shall be responsible for the enforcement
of this provision. The initial report shall be due no
later than January 1, 2015.
24-18-6.
Payment of state funds. -- (a) Subject to
the provisions of subsection (b), upon
the written request of the agency, the general treasurer
shall pay to the agency, from time to time,
from the proceeds of any bonds or notes issued by the
state for the purposes of this chapter or
funds otherwise lawfully payable to the agency for the
purposes of this chapter, such amounts as
shall have been appropriated or lawfully designated for the
revolving fund. All amounts so paid
shall be credited to the revolving fund in addition to any
other amounts credited or expected to be
credited to the revolving fund.
(b) The agency and
the state shall enter into, execute, and deliver one or more agreements
setting forth or otherwise determining the terms, conditions,
and procedures for, and the amount,
time, and manner of payment of, all amounts available from
the state to the agency under this
section.
24-18-7. Procedure for project approval. -- (a)
By September 1, 2013, the department
shall promulgate rules and regulations establishing the
project evaluation criteria and the process
through which a city or town may submit an infrastructure
plan. By December 31, 2013, the
agency shall promulgate rules and regulations to effectuate
the provisions of this chapter which
may include, without limitation, forms for financial
assistance applications, loan agreements, and
other instruments. All rules and regulations promulgated
pursuant to this chapter shall be
promulgated in accordance with the provisions of chapter 42-35.
(b) Beginning with
the calendar year 2013 and for each calendar year thereafter, cities
and towns shall have from September 15th through October
15th to submit an infrastructure plan to
the department. In the event that October 15th is a
Saturday, Sunday, or a general holiday as
enumerated in section 25-1-1, the deadline shall be extended
through the next day that is not a
Saturday, Sunday, or a general holiday as enumerated
in section 25-1-1.
(c) By the end of
each calendar year, the department shall evaluate all submitted
infrastructure plans and, in accordance with the project evaluation
criteria, identify all eligible
projects, and after a public hearing, the department shall
finalize and provide the agency and
statewide planning with a project priority list for the
forthcoming calendar year.
(d) By the end of
each calendar year, the agency shall determine the maximum amount of
financial assistance available for the forthcoming calendar
year, provided that it shall not exceed
an amount of twenty million dollars ($20,000,000); and
provided further that the agency shall not
obligate more than fifty percent (50%) of available funding in
any calendar year to any one city
or town unless there are no other eligible projects on
the project priority list.
(e) Upon issuance of
the project priority list, the agency shall award financial assistance
to cities and towns for approved projects provided,
however, that the agency does not exceed its
maximum annual amount of financial assistance. The agency may
decline to award financial
assistance to an approved project which the agency determines
will have a substantial adverse
effect on the interests of holders of bonds or other
indebtedness of the agency or the interests of
other participants in the financial assistance program, or
for good and sufficient cause affecting
the finances of the agency. All financial assistance
shall be made pursuant to a loan agreement
between the agency and the city or town, acting by and
through the officer or officers, board,
committee, or other body authorized by law, or otherwise its
chief executive officer, according to
terms and conditions as determined by the agency, and each
loan shall be evidenced and secured
by the issue to the agency of city or town obligations
in fully marketable form in principal
amount, bearing interest at the rate or rates specified in the
applicable loan agreement, and shall
otherwise bear such terms and conditions as authorized by this
chapter and/or the loan agreement.
24-18-8. Inspection
of approved projects. -- For any approved project, the department
shall have the authority to inspect the construction and
operation thereof to ensure compliance
with the provisions of this chapter.
24-18-9. Expenses
incurred by the department. -- In order to
provide for the
expenses of the department under this chapter, the agency
shall transfer to the department an
amount from the revolving fund equal to the amount
authorized by the general assembly.
24-18-10.
Severability. -- If any provision of this
chapter or the application of this
chapter to any person or circumstances is held invalid, the
invalidity shall not affect other
provisions or applications of the chapter, which can be given
effect without the invalid provision
or application, and to this end the provisions of this
chapter are declared to be severable.
SECTION 2. Sections 46-12.2-4, 46-12.2-14, 46-12.2-15,
46-12.2-16, 46-12.2-17, 46-
12.2-18, 46-12.2-19,
46-12.2-20, 46-12.2-21, 46-12.2-22 and 46-12.2-25 of the General Laws in
Chapter 46-12.2 entitled
"Rhode Island Clean Water Finance Agency" are
hereby amended to
read as follows:
46-12.2-4. General
powers and duties of agency. -- (a) The agency shall have all
powers necessary or convenient to carry out and effectuate
the purposes and provisions of this
chapter and chapter 24-18, including without limiting
the generality of the foregoing, the powers
and duties:
(1) To adopt and amend
bylaws, rules, regulations, and procedures for the governance of
its affairs, the administration of its financial
assistance programs, and the conduct of its business;
(2) To adopt an official
seal;
(3) To maintain an
office at such place or places as it may determine;
(4) To adopt a fiscal
year;
(5) To adopt and enforce
procedures and regulations in connection with the performance
of its functions and duties;
(6) To sue and be sued;
(7) To employ personnel
as provided in § 46-12.2-5, and to engage accounting,
management, legal, financial, consulting and other professional
services;
(8) Except as provided
in this chapter, to receive and apply its revenues to the purposes of
this chapter without appropriation or allotment by the
state or any political subdivision thereof;
(9) To borrow money,
issue bonds, and apply the proceeds thereof, as provided in this
chapter and chapter 24-18, and to pledge or assign or
create security interests in revenues, funds,
and other property of the agency and otherwise as
provided in this chapter and chapter 24-18, to
pay or secure the bonds; and to invest any funds held in
reserves or in the water pollution control
revolving fund, the
bridge fund established under chapter 24-18, or the local interest subsidy trust fund, or any
revenues or funds not required for immediate disbursement, in
such investments as may be legal
investments for funds of the state;
(10) To obtain insurance
and to enter into agreements of indemnification necessary or
convenient to the exercise of its powers under this chapter and
chapter 24-18;
(11) To apply for,
receive, administer, and comply with the conditions and requirements
respecting any grant, gift, or appropriation of property,
services, or moneys;
(12) To enter into
contracts, arrangements, and agreements with other persons, and
execute and deliver all instruments necessary or convenient
to the exercise of its powers under
this chapter and chapter 24-18; such contracts and
agreements may include without limitation,
loan agreements with local governmental units,
capitalization grant agreements, intended use
plans, operating plans, and other agreements and
instruments contemplated by title VI of the
Clean Water Act, 33 U.S.C. § 1381 et seq., or this
chapter, agreement and instruments
contemplated by chapter 24-18, grant agreements, contracts for financial assistance or other forms
of assistance from the state or the
agreements and instruments pertaining to bonds;
(13) To authorize a
representative to appear on its own behalf before other public bodies,
including, without limiting the generality of the foregoing,
the congress of the
all matters relating to its powers and purposes;
(14) To provide
financial assistance to local governmental units to finance costs of
approved projects, and to acquire and hold local governmental
obligations at such prices and in
such manner as the agency shall deem advisable, and sell
local governmental obligations acquired
or held by it at prices without relation to cost and in
such manner as the agency shall deem
advisable, and to secure its own bonds with such obligations
all as provided in this chapter and
chapter 24-18;
(15) To establish and
collect such fees and charges as the agency shall determine to be
reasonable;
(16) To acquire, own,
lease as tenant, or hold real, personal or mixed property or any
interest therein for its own use; and to improve, rehabilitate,
sell, assign, exchange, lease as
landlord, mortgage, or otherwise dispose of or encumber the
same;
(17) To do all things
necessary, convenient, or desirable for carrying out the purposes of
this chapter and chapter 24-18 or the powers
expressly granted or necessarily implied by this
chapter and chapter 24-18;
(18) To conduct a
training course for newly appointed and qualified members and new
designees of ex-officio members within six (6) months of their
qualification or designation. The
course shall be developed by the executive director,
approved by the board of directors, and
conducted by the executive director. The board of directors may
approve the use of any board of
directors or staff members or other individuals to assist with
training. The training course shall
include instruction in the following areas: the provisions of
chapters 46-12.2, 42-46, 36-14, and
38-2; and the agency's rules and
regulations. The director of the
department of administration
shall, within ninety (90) days of the effective date of
this act [July 15, 2005], prepare and
disseminate, training materials relating to the provisions of
chapters 42-46, 36-14 and 38-2; and
(19) Upon the
dissolution of the water resources board (corporate) pursuant to § 46-15.1-
22, to have all the powers and duties previously
vested with the water resources board
(corporate), as provided
pursuant to chapter 46-15.1.
(20) To meet at the call
of the chair at least eight (8) times per year. All meetings shall be
held consistent with chapters 42-46.
(b) Notwithstanding any
other provision of this chapter, the agency shall not be
authorized or empowered:
(1) To be or to
constitute a bank or trust company within the jurisdiction or under the
control of the department of banking and insurance of the
state, or the commissioner thereof, the
comptroller of the currency of the
or
(2) To be or constitute
a bank, banker or dealer in securities within the meaning of, or
subject to the provisions of, any securities, securities
exchange, or securities dealers' law of the
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 chapter
24-18, 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 section 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 24-18, as applicable,
relating to the issue of bonds of the agency other than temporary
notes as this chapter 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 24-18, 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 24-18, 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 and local 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
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 and local 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 24-18 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
24-18, 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 24-18 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 and local 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 24-18 is
an exercise of the governmental powers of the agency,
and loan agreements, local 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 24-18, 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 24-18 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 24-18, or
by the trust agreement, to be performed by the agency or by any officer
thereof.
46-12.2-15.
Refunding bonds. -- The agency may issue refunding
bonds for the purpose
of paying any of its bonds, issued pursuant to this
chapter or chapter 24-18, at or prior to maturity
or upon acceleration or redemption or purchase and
retirement. Refunding bonds may be issued at
such times at or prior to the maturity, redemption, or
purchase and retirement of the refunded
bonds as the board of directors deems to be in the interest
of the agency. Refunding bonds may be
issued in sufficient amounts to pay or provide for payment of
the principal of the bonds being
refunded, together with any redemption premium thereon, any
interest or discount accrued or to
accrue to the date of payment of the bonds, the costs of
issuance of the refunding bonds, the
expenses of paying, redeeming, or purchasing the bonds being
refunded, the costs of holding and
investing proceeds of refunding bonds pending payment,
redemption, or purchase and reserves
for debt service or other expenses from the proceeds of
refunding bonds as may be required by a
trust agreement securing the bonds. Pending application,
the proceeds of the refunding bonds may
be placed in escrow. The issue and sale of refunding
bonds, the maturities, and other details
thereof, the security therefor, the
rights of the holders thereof, and the rights, duties, and
obligations of the agency in respect of the same shall be
governed by the provisions of this
chapter and chapter 24-18, as applicable, relating to
the issue of bonds other than refunding bonds
insofar as this chapter these chapters may be
applicable.
46-12.2-16. Bonds
eligible for investment. -- Bonds issued by the agency under this
chapter or chapter 24-18 and local governmental
obligations issued hereunder are hereby made
securities in which all public officers and agencies of the
state and its political subdivisions, all
insurance companies, trust companies in their commercial
departments, savings banks,
cooperative banks, banking associations, investment companies,
executors, administrators,
trustees, and other fiduciaries may properly invest funds,
including capital in their control or
belonging to them. The bonds and local governmental obligations
are hereby made securities
which may properly be deposited with and received by any
state or municipal officer of any
agency or political subdivision of the state for any purpose
for which the deposit of bonds or
obligations of the state or any political subdivision is now or
may hereafter be authorized by law.
46-12.2-17. No
additional consent required. -- Except as provided in this section,
bonds
and local governmental obligations may be issued under
this chapter or chapter 24-18 without
obtaining the consent of any executive office, department,
division, commission, board, bureau,
or agency of the state or any political subdivision
thereof, and without any other proceedings or
the happening of any condition, or acts other than those
proceedings, conditions, or acts which are
specifically required therefor hereunder
or under any applicable bond act, and the validity of and
security for any bonds issued by the agency pursuant to this
chapter or chapter 24-18, and any
local governmental obligations issued in accordance
herewith, shall not be affected by the
existence or nonexistence of any consent or other proceedings,
conditions, or acts. Nothing in this
chapter or chapter 24-18 shall exempt the agency from
the provisions of chapter 10.1 of title 42
entitled "Public Finance Management Board," and the
management district commission shall not issue any bonds, notes,
or other indebtedness without
the approval of the division of public utilities as
required by section 39-3-15.
46-12.2-18. Bonds
not obligations of the state. -- Bonds issued by the agency under the
provisions of this chapter or chapter 24-18 shall not be
deemed to be a debt or a pledge of the
faith and credit of the state or of any of its political
subdivisions, but shall be payable solely from
the revenues, funds, assets, and other property of the
agency from which they are made payable
pursuant to this chapter or chapter 24-18. Bonds issued
by the agency under the provisions of this
chapter and chapter 24-18 shall recite that neither
the state nor any political subdivisions thereof
shall be obligated to pay the bonds, and that neither the
faith and credit nor the taxing power of
the state or of any political subdivision thereof is
pledged to the payment of the principal of or
interest on the bonds. Further, every bond shall recite
whether it is a general obligation of the
agency, or a special obligation thereof payable solely from
particular revenues, funds, assets, or
other property pledged to its payment.
46-12.2-19.
Lien status -- Recording. -- (a) Notwithstanding any provision of any other
law, including the Uniform Commercial Code:
(1) Any pledge or
assignment of revenues of any kind, funds, loan agreements, local
governmental obligations, property, or assets made pursuant to the
provisions of this chapter or
chapter 24-18 by
the agency, or any local governmental unit hereunder, shall be valid and
binding
against all parties having claims of any kind in tort,
contract, or otherwise, whether or not the
parties have notice thereof, and shall be deemed continuously
perfected from the time it is made;
(2) No filing of any
kind with respect to a pledge or assignment need be made under the
Uniform Commercial Code, as amended, or otherwise;
(3) Unless otherwise provided
in the loan agreement, a pledge of revenues of any kind
shall be deemed to include a pledge of any accounts or
general intangibles from which the
pledged revenues are derived, whether existing at the time of
the pledge or thereafter coming into
existence, and whether held at the time of the pledge or
thereafter acquired by the agency or local
governmental unit, and the proceeds of the accounts or general
intangibles; and
(4) The pledge of
revenues of any kind, accounts, and general intangibles shall be
subject to the lien of the pledge without delivery or
segregation, and the lien of the pledge shall
be valid and binding against all parties having claims
of contract or tort or otherwise against the
agency or local governmental unit.
(b) A pledge of
revenues of any kind under this chapter or chapter 24-18 shall
constitute
a sufficient appropriation thereof for the purposes of
any provision for appropriation, and the
revenues may be applied as required by the pledge without
further appropriation.
(c) For the purposes of
this section, the word "pledge" shall be construed to include the
grant of a security interest under the Uniform Commercial
Code.
46-12.2-20.
Bonds and local government obligations as investment securities.
--
Notwithstanding any of the provisions of this chapter,
chapter 24-18, or any recitals in any bonds
or local governmental obligations issued hereunder, all
bonds and local governmental obligations
shall be deemed to be investment securities under the
Uniform Commercial Code.
46-12.2-21.
Proceeds received by agency as trust funds. -- All
moneys received by the
agency pursuant to the provisions of this chapter or
chapter 24-18, whether as proceeds from the
issue of bonds or as revenues or otherwise, shall be deemed
to be trust funds to be held and
applied solely as provided in this chapter these
chapters.
46-12.2-22.
Tax exemption. -- Bonds issued by the agency and
local governmental
obligations issued by any local governmental unit in accordance
with this chapter or chapter 24-
18, their
transfer and the income therefrom, including any
profit made on the sale thereof, shall, at
all times, be exempt from taxation by and within the
state. The agency shall not be required to
pay any taxes, assessments, or excises upon its income,
existence, operation, or property.
46-12.2-25.
Supplemental powers -- Inconsistent laws. -- The provisions of this
chapter
and chapter 24-18
shall be deemed to provide an additional, alternative, and complete method for
accomplishing the purposes of this chapter these chapters,
and shall be deemed and construed to
be supplemental and additional to, and not in derogation
of, powers conferred upon the agency,
the department, and local governmental units by other
laws; provided, however, that insofar as
the provisions of this chapter these chapters
are inconsistent with the provisions of any general or
special law, municipal charter, administrative order or
regulations, the provisions of this chapter
these chapters
shall be controlling. Any amounts appropriated by this chapter these
chapters to
the agency or the department shall be in addition to any
other amounts appropriated to the agency
or the department by any other law.
SECTION 3. This article shall take effect upon passage.