| Chapter 112 |
| 2024 -- H 8205 Enacted 06/15/2024 |
| A N A C T |
| RELATING TO TOWNS AND CITIES -- INDEBTEDNESS OF TOWNS AND CITIES |
Introduced By: Representatives Speakman, and Knight |
| Date Introduced: April 25, 2024 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 45-12-4.4 of the General Laws in Chapter 45-12 entitled |
| "Indebtedness of Towns and Cities" is hereby amended to read as follows: |
| 45-12-4.4. Borrowing in payment of certain judgments. |
| (a) A city or town may authorize the issuance of bonds, notes, or other evidences of |
| indebtedness to pay the uninsured portion of any court judgment or settlement, except any court |
| judgment or settlement arising out of any pension obligation of a city or town; provided, however, |
| that the outstanding principal amount, in aggregate, shall not exceed five percent (5%) of the total |
| amount of the city or town’s most recently adopted municipal budget. Notwithstanding the |
| aforementioned, the towns of Coventry and, Middletown, and Warren are authorized to issue bonds, |
| notes, or other evidences of indebtedness to pay the uninsured portion of any court judgment or |
| settlement, except any court judgment or settlement arising out of any pension obligation of a city |
| or town; provided, however, that the outstanding principal amount, in aggregate, shall not exceed |
| ten percent (10%) of the total amount of the applicable municipality’s most recently adopted |
| municipal budget. |
| (b) These bonds, notes, or other evidences of indebtedness are subject to the maximum |
| aggregate indebtedness permitted to be issued by any city or town under § 45-12-2. |
| (c) The bonds, notes, or other evidences of indebtedness may be issued to pay a judgment |
| or settlement or may be issued to pay or refund notes issued under § 45-12-4.1. |
| (d) The denominations, maturities, interest rates, methods of sale, and other terms, |
| conditions, and details of any bonds or notes issued under the provisions of this section may be |
| fixed by the vote or resolution of the city or town council authorizing them, or if no provision is |
| made in the vote or resolution, by the treasurer or other officer authorized to issue the bonds or |
| notes or to hire the money; provided, that the payment of principal of bonds shall be by sufficient |
| annual payments that will extinguish the debt at maturity, the first of these annual payments to be |
| made not later than one year, and the last payment not later than fifteen (15) years after the date of |
| the bonds. |
| (e) The bonds, notes, or other evidences of indebtedness may be issued under this section |
| by any political subdivision without obtaining the approval of its electors, notwithstanding the |
| provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the |
| contrary, unless the electors when assembled in a meeting are the local legislative body for the |
| purpose of authorizing indebtedness of the political subdivision. |
| SECTION 2. This act shall take effect upon passage. |
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| LC005997 |
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