2023 Rhode Island General Laws › Title 45 - Towns and Cities › Chapter 45-33.2 - Municipal Tax Increment Financing Act › Section 45-33.2-6. - Issuance of special obligation bonds.

§ 45-33.2-6. Issuance of special obligation bonds.
(a)
A city or town may, in compliance with any applicable provisions of the general laws (except as provided in this section) borrow money by the issue of special obligation bonds for the purpose of carrying out a project pursuant to a duly adopted project plan or tax increment district master plan, as defined in § 45-33.2-3.1(13). Without limiting the generality of the preceding, the bonds may be issued for project costs which may include interest prior to and during the carrying out of a project and for a reasonable time thereafter, reserves that may be required by any agreement securing the bonds, and all other expenses including reimbursements of expenses previously paid from any other source, incidental to planning, carrying out, and financing the project. Bonds issued under this section shall be payable solely from:
(1)
Project revenues;
(2)
A pledge of and lien upon any or all of the income, proceeds, revenues and property of the project within the tax increment area, project area or tax increment district, including the proceeds of grants, loans, advances or contributions from the federal government, the state or other source; and
(3)
Any combination of the sources in subsections (a)(1) and (a)(2) of this section, and shall not be deemed to be a pledge of faith and credit of the city or town. Every bond issued under this section shall recite on its face that it is a special obligation bond payable solely from project revenues or other revenues pledged for its repayment.
(b)
The bonds of each issue shall be dated and may be made redeemable before maturity with or without premium. Subject to the authorizing vote, the officers authorized to sell the bonds shall determine the date or dates of the bonds, their denomination or denominations, the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the state, their interest rate or rates, prices, maturity or maturities not to exceed thirty (30) years, redemption privileges, if any, and the form and other details of the bonds, including interest coupons to be attached to them. The bonds shall be signed by the city or town treasurer, countersigned by the mayor of a city or by the president of the town council of a town, either manually or by facsimile, and shall bear the seal of the city or town or a facsimile of the seal. Any coupons attached thereto shall bear the facsimile signature of the city or town treasurer.
(c)
In case any officer whose signature or a facsimile of whose signature appears on any bonds, coupons, or notes issued under this chapter ceases to be an officer before their delivery, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until the delivery.
(d)
The bonds may be issued in coupon or registered form, or both, and provision may be made for the registration of any coupon bonds as to principal alone and also as to principal and interest, for the reconversion into coupon bonds or bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. Subject to the authorizing vote, the officers authorized to sell the bonds may sell the bonds in a manner, either at public or private sale, and for a price, as they may determine will best effect the purposes of this chapter.
(e)
Prior to the preparation of definitive bonds, the city or town may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when those bonds have been executed and are available for delivery. Provision may be made for the replacement of any bonds which have become mutilated or have been destroyed or lost.
(f)
Notwithstanding any provisions of any municipal charter or general or special law to the contrary, bonds issued under this section may provide for annual or more frequent installments of principal in equal, diminishing, or increasing amounts, with the first installment of principal to be due at any time within five (5) years from the date of the issuance of the bonds.
(g)
While any bonds issued hereunder remain outstanding, the existence of the tax increment district and the powers and duties of a city or town with respect to such tax increment district shall not be diminished or impaired in any way that will affect adversely the interests and rights of the holders of the bonds. Any bonds issued by a city or town pursuant to this section shall contain on their face a statement to the effect that neither the state nor the city or town shall be obliged to pay the principal of or the interest thereon, and that neither the full faith and credit or taxing power of the state or the city or town is pledged to the payment of the bonds. All bonds issued under this section are deemed to be negotiable instruments under the laws of this state.
(h)
As used in this section, “bonds” means any bonds, including refunding bonds, notes, interim certificates, debentures or other obligations.
History of Section.
P.L. 1984, ch. 78, § 1; P.L. 1988, ch. 629, § 1; P.L. 1992, ch. 424, § 1; P.L. 2018, ch. 156, § 3; P.L. 2018, ch. 292, § 3.