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:

{ADD 45-12-4.4. Borrowing in payment of certain judgments. -- ADD} A city or town may issue bonds, notes, or other evidences of indebtedness {ADD in an amount not to exceed four million dollars ($4,000,000) ADD} to pay the uninsured portion of any court judgment or settlement {ADD (a) ADD} arising out of any litigation for which the general assembly has by special legislation increased the maximum amounts permitted for recovery against a city or town beyond the amounts otherwise recoverable under the general laws {DEL . DEL} {ADD or (b) arising out of a general revaluation of real property within the city or town conducted pursuant to section 44-5-11 of the general laws. ADD} These bonds, notes, or other evidences of indebtedness shall be subject to the maximum aggregate indebtedness permitted to be issued by any city or town under section 45-12-2. 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 section 45-12-4.1. The denominations, maturities, interest rates, methods of sale, and other terms, conditions, and details of any bond, note or hiring under the provisions of this section may be fixed by the vote or resolution of the city or town council authorizing the same, or if no provision therefore is made in the vote or resolution, by the city or town council, or in the absence of any of the foregoing, by the treasurer or other officer authorized to issue the bonds or notes or to hire the money, provided, however, that the payment of principal of bonds shall be by such annual payments as will extinguish the same 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. The bonds, notes, or other evidences of indebtedness may be issued under this section by any political subdivision without obtaining the approval of the electors thereof, notwithstanding the provisions of sections 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.