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2012 -- S 2628 | |
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LC02020 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES | |
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Introduced By: Senators Shibley, and Kettle | |
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Date Introduced: March 01, 2012 | |
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Referred To: Senate Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 45-12-4.4 of the General Laws in Chapter 45-12 entitled |
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"Indebtedness of Towns and Cities" is hereby amended to read as follows: |
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45-12-4.4. Borrowing in payment of certain judgments. -- (a) A city or town may |
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authorize the issuance of bonds, notes, or other evidences of indebtedness to pay the uninsured |
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portion of any court judgment or settlement, except any court judgment or settlement arising out |
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of any pension obligation of a city or town; provided, however, that the outstanding principal |
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amount, in aggregate, shall not exceed five percent (5%) of the total amount of the city or town's |
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most recently adopted municipal budget. Notwithstanding the aforementioned, the town of |
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Coventry is authorized to issue bonds, notes, or other evidences of indebtedness to pay the |
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uninsured portion of any court judgment or settlement, except any court judgment or settlement |
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arising out of any pension obligation of a city or town; provided, however, that the outstanding |
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principal amount, in aggregate, shall not exceed ten percent (10%) of the total amount of the town |
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of Coventry's most recently adopted municipal budget. |
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(b) These bonds, notes, or other evidences of indebtedness are subject to the maximum |
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aggregate indebtedness permitted to be issued by any city or town under section 45-12-2. |
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(c) The bonds, notes, or other evidences of indebtedness may be issued to pay a |
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judgment or settlement or may be issued to pay or refund notes issued under section 45-12-4.1. |
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(d) The denominations, maturities, interest rates, methods of sale, and other terms, |
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conditions, and details of any bonds or notes issued under the provisions of this section may be |
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fixed by the vote or resolution of the city or town council authorizing them, or if no provision is |
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made in the vote or resolution, by the treasurer or other officer authorized to issue the bonds or |
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notes or to hire the money; provided, that the payment of principal of bonds shall be by sufficient |
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annual payments that will extinguish the debt at maturity, the first of these annual payments to be |
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made not later than one year, and the last payment not later than fifteen (15) years after the date |
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of the bonds. |
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(e) The bonds, notes, or other evidences of indebtedness may be issued under this section |
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by any political subdivision without obtaining the approval of its electors, notwithstanding the |
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provisions of sections 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to |
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the contrary, unless the electors when assembled in a meeting are the local legislative body for |
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the purpose of authorizing indebtedness of the political subdivision. |
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SECTION 2. This act shall take effect upon passage. |
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LC02020 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES - INDEBTEDNESS OF TOWNS AND CITIES | |
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This act would increase the amount that the town of Coventry may borrow to finance a |
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court judgment or settlement from five percent (5%) to ten percent (10%) of Coventry's most |
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recently adopted municipal budget. |
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This act would take effect upon passage. |
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LC02020 | |
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