Title 45
Towns and Cities

Chapter 38.1
Health and Educational Building Corporation

§ 45-38.1-3. Definitions.

As used in this chapter, the following words and terms have the following meaning unless the context indicates another or different meaning or intent:

(1) “Bonds” means bonds of the corporation issued under the provisions of this chapter, including refunding bonds, notwithstanding that the bonds may be secured by mortgage or the full faith and credit of the corporation or the full faith and credit of a participating institution for higher education or of a participating municipality or of a participating healthcare provider or any other lawfully pledged security of a participating educational institution or child daycare center or of a participating municipality or of a participating healthcare provider.

(2) “Borrower” means a student or a parent who has received or agreed to pay an education loan.

(3) “Capital note(s)” means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a healthcare provider or educational institution or municipality or child daycare center to purchase capital assets to be used in the operations of the healthcare provider or educational institution or municipality or child daycare center.

(4) “Child daycare center” means a child daycare center as defined in § 42-12.5-2, which is a not-for-profit organization.

(5) “Cooperative hospital service organization” means a corporation created pursuant to chapter 6 of title 7, which meets the requirements of Section 501(e) of the Internal Revenue Code of 1954, 26 U.S.C. § 501(e), and is exempt from federal taxation of income in accordance with Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3).

(6) “Corporation” means the Rhode Island health and educational building corporation created and established as a nonbusiness corporation, under and pursuant to chapter 6 of title 7, as amended, and constituted and established as a public body corporate and agency of the state under § 45-38.1-4, or any board, body, commission, department, or officer succeeding to the principal functions of the corporation or to whom the powers conferred upon the corporation by this chapter are given by law.

(7) “Corporation loans” means loans by the corporation to an educational institution or child daycare center for the purpose of funding education loans.

(8) “Cost” as applied to a project or any portion of it, financed under the provisions of this chapter, embraces all or any part of the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights of way, franchises, easements, and interests acquired or used for a project, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved, the cost of all machinery and equipment, financing charges, interest prior to, during and for a period after completion of the construction, provisions for working capital, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations and improvements, cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing the project, and other expenses that may be necessary or incident to the construction and acquisition of the project, the financing of the construction and acquisition, and the placing of the project in operation.

(9) “Default insurance” means insurance insuring education loans, corporation loans, or bonds or notes of the corporation against default.

(10) “Default reserve fund” means a fund established pursuant to a resolution of the corporation for the purpose of securing education loans, corporation loans, or bonds or notes of the corporation.

(11) “Education loan” means a loan that is made by or on behalf of an educational institution or child daycare center from the proceeds of a corporation loan, to a student or parents of a student or both, to finance the student’s attendance at the institution.

(12) “Education loan series portfolio” means all education loans made by or on behalf of a specific educational institution or child daycare center that are funded from the proceeds of a corporation loan to the institution out of the proceeds of a related specific bond or note issued through the corporation.

(13) “Educational institution” means:

(i) An educational institution or local education authority participating in the school housing aid program as described in chapter 7 of title 16 situated within this state which, by virtue of law or charter, is a public or other nonprofit educational institution empowered to provide a program of education at the primary, secondary, or high school level, beyond the high school level, and which is accredited by a nationally recognized educational accrediting agency or association and awards a bachelor’s or advance degree or provides a program of not less than two (2) years’ duration that is accepted for full credit toward a bachelor’s degree;

(ii) Any nonprofit corporation, business corporation, limited liability company, or partnership or limited partnership the shareholders or members or partners or limited partners of which are limited to those entities described in subsection (13)(i) hereof;

(iii) Any nonprofit corporation, business corporation, limited liability company, partnership, or limited partnership that is a party to a public-private partnership agreement at least one of the parties of which is described in subsection (13)(i) hereof;

(iv) Any museum in this state as defined by § 34-44.1-1 and that is a not-for-profit organization; or

(v) Any performing arts center or theater that produces live, on-stage musical, theatrical, or dance performances in this state for members of the public and that is a not-for-profit organization.

(14) “Healthcare provider” means:

(i) Any nonprofit hospital incorporated under the laws of the state, including any nonprofit subsidiary corporations formed by any hospital or formed by the parent corporation of the hospital;

(ii) Any nonprofit corporation, the member or members of which consist solely of one or more hospitals or their parent corporations;

(iii) Any other hospital that is licensed as a general hospital or maternity hospital pursuant to chapter 17 of title 23 that is exempt from taxation;

(iv) Any nonprofit group health association;

(v) Any cooperative hospital service organization, or any nonprofit corporation that is licensed as a skilled nursing and/or intermediate care facility pursuant to chapter 17 of title 23, including any nonprofit subsidiary corporation formed by any of the foregoing skilled nursing and/or intermediate care facilities, or any nonprofit corporation eligible to receive funding, pursuant to chapter 8.5 of title 40.1, and/or a corporation created pursuant to chapter 6 of title 7, provided, that it is a real estate holding corporation created for the benefit of a nonprofit corporation eligible to receive funding under chapter 8.5 of title 40.1;

(vi) Any nonprofit healthcare corporation whose purpose is to provide home care services or supplies to the citizens of this state including, but not limited to, nonprofit visiting nurse associations and nonprofit home care organizations;

(vii) Any other not-for-profit corporation organized pursuant to chapter 6 of title 7 or pursuant to any special act of the general assembly and that is exempt from federal taxation of income in accordance with Section 501(c)(3), 26 U.S.C. § 501(c)(3), of the Internal Revenue Code and that is licensed as:

(A) A healthcare facility pursuant to chapter 17 of title 23;

(B) A “facility” pursuant to chapter 24 of title 40.1;

(C) A “residential care and assisted living facility” pursuant to chapter 17.4 of title 23;

(D) An adult daycare facility; or

(E) A “clinical laboratory” pursuant to chapter 16.2 of title 23 and as a manufacturer of biological products by the United States Department of Health and Human Services Food and Drug Administration that operates in Rhode Island;

(viii) Any not-for-profit corporation that is exempt from federal taxation of income in accordance with Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), or any successor section of the Internal Revenue Code, that under contract with the state educates, counsels, or rehabilitates young people who have come subject to child welfare, juvenile justice, or mental health systems in the state;

(ix) Any network or similar arrangement of those entities listed in subsections (14)(i) through (viii) of this section;

(x)(A) Any nonprofit corporation, business corporation, limited liability company, partnership, or limited partnership, the shareholders or members or partners or limited partners of which are limited to those entities described in subsections (14)(i) through (ix) hereof; or

(B) Any nonprofit corporation, business corporation, limited liability company, partnership, or limited partnership that is a party to a public-private partnership agreement at least one of the parties of which is described in subsections (14)(i) through (ix) hereof;

(xi) Any not-for-profit corporation organized pursuant to chapter 6 of title 7 or pursuant to any special act of the general assembly, that is exempt from federal taxation of income in accordance with Section 501(c)(3), 26 U.S.C. § 501(c)(3), of the Internal Revenue Code, that provides individual or family social or human services within the state and that is accredited by a nationally recognized social or human services accrediting agency; or

(xii) A not-for-profit corporation organized pursuant to chapter 6 of title 7 or pursuant to any special act of the general assembly, that is exempt from federal taxation of income in accordance with Section 501(c)(3), 26 U.S.C. § 501(c)(3), of the Internal Revenue Code and that provides temporary housing shelter to people within this state.

(15) “Loan funding deposit” means monies or other property deposited by an educational institution or child daycare center with the corporation, a guarantor, or a trustee for the purpose of:

(i) Providing security for bonds or notes;

(ii) Funding a default reserve fund;

(iii) Acquiring default insurance;

(iv) Defraying costs of the corporation, the monies or properties to be in amounts as deemed necessary by the corporation or a guarantor as a condition for the institution’s participation in the corporation’s programs.

(16) “Municipality” means any city or town located in the state with powers set forth in this title.

(17) “Nonprofit group health association” means an association or a corporation established by an act of the general assembly, or created pursuant to chapter 6 of title 7, to provide all or any part of a project or property to the citizens of this state.

(18) “Note” means a written promise to pay, including, but not limited to, capital notes and revenue anticipation notes.

(19) “Parent” means any parent, legal guardian, or sponsor of the student at an educational institution or child daycare center.

(20) “Participating educational institution” means an educational institution or child daycare center which, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project, or undertakes the refunding or refinancing of obligations or of a mortgage or of advances or undertakes the financing, directly or indirectly, of education loans, all as provided in and permitted by this chapter.

(21) “Participating healthcare provider” means a healthcare provider that, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in and permitted by this chapter.

(22) “Participating municipality” means a municipality that, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in and permitted by this chapter.

(23) “Project,” in the case of a participating educational institution or child daycare center means a structure suitable for use as a dormitory or other housing facility, dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, athletic facility, healthcare facility, and maintenance, storage or utility facility, and other structures or facilities related to the educational institution or child daycare center or required or useful for the instruction of students or the conducting of research or the operation of an educational institution or child daycare center including parking and other facilities or structures essential or convenient for the orderly conduct of the educational institution or child daycare center and also includes equipment and machinery and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended, but does not include such items as books, fuel, supplies, or other items which are customarily deemed to result in a current operating charge and in the case of a participating municipality means a structure suitable for use as a public library, gymnasium, recreational facility, park, playground, and maintenance, storage, or utility facility and other structures required or useful for the operation of the project, including parking and other facilities or structures essential or convenient for the orderly operation of the project, and also includes equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended, but does not include such items as books, fuel, supplies, or other items that are customarily deemed to result in a current operating charge; and, in the case of a participating healthcare provider, means a structure suitable for use as a hospital, clinic, nursing home, congregate housing for the elderly and/or infirm, mental health service unit, or other healthcare facility, laboratory, laundry, nurses’, interns’, or clients’ residence, administration building, research facility, and maintenance, storage, or utility facility, and other structures or facilities related to the healthcare provider or required or useful for the operation of the project, including parking and other facilities or structures essential or convenient for the orderly operation of the project, and also includes equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended, but does not include such items as fuel, supplies, or other items which are customarily deemed to result in a current operating charge.

(24) “Public-private partnership agreement” means an arrangement or agreement pursuant to which a nonprofit corporation, business corporation, limited liability company, partnership, or limited partnership undertakes or develops a project for an educational institution, municipality, or a healthcare provider including, but not limited to, a lease arrangement, wherein pursuant to such arrangement or agreement at the conclusion of such arrangement or agreement the ownership of the bond-financed or note-financed project is transferred to the educational institution, municipality, or healthcare provider for no additional consideration.

(25) “Recreational facility” means a system of public recreation established by § 32-3-2.

(26) “Revenue anticipation note(s)” means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a healthcare provider or educational institution in anticipation of revenues reasonably expected to be collected by the healthcare provider or educational institution within twelve (12) months from the date of the note or notes.

(27) “School housing project” means an “approved project,” as defined in § 16-7-36.

(28) “School housing project financing” means bonds issued through the corporation to fund school housing projects as provided in and permitted by § 16-7-44.

(29) “State” means the state of Rhode Island.

(30) “State reimbursement” shall mean the state’s share of school housing project cost as determined in accordance with §§ 16-7-35 — 16-7-47.