Title 45
Towns and Cities

Chapter 38.2
School Building Authority Capital Fund

§ 45-38.2-3. Administration.

(a) The corporation shall have all the powers necessary or incidental to carry out and effectuate the purposes and provisions of this chapter including:

(1) To receive and disburse such funds from the state as may be available for the purpose of the fund subject to the provisions of this chapter;

(2) To make and enter into binding commitments to provide financial assistance to cities, towns, and local education agencies from amounts on deposit in the fund;

(3) To enter into binding commitments to provide subsidy assistance for loans and city, town, and local education agency obligations from amounts on deposit in the fund;

(4) To levy administrative fees on cities, towns, and local education agencies as necessary to effectuate the provisions of this chapter; provided that the total amount of all such fees does not exceed one tenth of one percent (0.001) of the original principal amount;

(5) To engage the services of third-party vendors to provide professional services;

(6) To establish one or more accounts within the fund; and

(7) Such other authority as granted to the corporation under chapter 38.1 of this title.

(b) Subject to the provisions of this chapter, and to any agreements with the holders of any bonds of the corporation or any trustee therefor, amounts held by the corporation for the account of the fund shall be applied by the corporation, either by direct expenditure, disbursement, or transfer to one or more other funds and accounts held by the corporation or a trustee under a trust agreement or trust indenture entered into by the corporation with respect to bonds or notes issued by the corporation under this chapter or by a holder of bonds or notes issued by the corporation under this chapter, either alone or with other funds of the corporation, to the following purposes:

(1) To provide financial assistance to cities, towns, and local education agencies 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 corporation;

(2) To fund reserves for bonds of the corporation 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 corporation, by pledge, lien, assignment, or otherwise as provided in chapter 38.1 of this title;

(3) To pay or provide for subsidy assistance as determined by the school building authority;

(4) To provide a reserve for, or to otherwise secure, amounts payable by cities, towns, and local education agencies on loans and city, town, and local education agency obligations outstanding in the event of default thereof; amounts in any account in the fund may be applied to defaults on loans outstanding to the city, town, or local education agency for which the account was established and, on a parity basis with all other accounts, to defaults on any loans or city, town, or local education agency obligations outstanding; and

(5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or otherwise as provided in chapter 38.1 of this title, any bonds or notes of the corporation issued under this chapter.

(c) The repayment obligations of the city, town, or local education agency for loans shall be in accordance with its eligibility for state aid for school housing as set forth in §§ 16-7-39, 16-77.1-5, and 16-105-3(19).

(d) In addition to other remedies of the corporation under any loan or financing agreement or otherwise provided by law, the corporation may also recover from a city, town, or local education agency, in an action in superior court, any amount due the corporation together with any other actual damages the corporation shall have sustained from the failure or refusal of the city, town, or local education agency to make the payments or abide by the terms of the loan or financing agreement.