2023 Rhode Island General Laws › Title 46 - Waters and Navigation › Chapter 46-25 - Narragansett Bay Commission › Section 46-25-58. - Revenue bonds and notes of the commission.

§ 46-25-58. Revenue bonds and notes of the commission.
(a)
The commission shall have the power and is hereby authorized to issue, from time to time, its negotiable revenue bonds and notes in one or more series in such principal amounts as in the opinion of the commission shall be necessary to provide sufficient funds for achieving its purposes, including the payment of interest on revenue bonds and notes of the commission to the extent permitted by law, the establishment of reserves to secure the revenue bonds and notes (including the reserve funds created pursuant to § 46-25-60), and the making of all other expenditures of the commission incident to and necessary or convenient to carrying out its corporate purposes and powers.
(b)
All revenue bonds and notes issued by the commission, may be secured by the full faith and credit of the commission and may be payable solely out of the revenues, earnings, and receipts of the commission or such other property pledged for payment. The revenue bonds and notes may be executed and delivered by the commission at any time, from time to time, may be in such form and denominations and of such tenor and maturities, and may be in bearer or registered form, as to principal and interest or as to principal alone, all as the commission, in its sole discretion, may determine.
(c)
Revenue bonds may be payable in such installments, and at such times not exceeding fifty (50) years from the date thereof, as shall be determined by the commission.
(d)
Revenue notes may be payable in such installments and at such times not exceeding ten (10) years from the date of the original issue of such revenue notes, as shall be determined by the commission.
(e)
Revenue bonds and notes may be payable at such places, whether within or without the state of Rhode Island, may bear interest at such rate or rates payable at such time or times and at such place or places evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the commission under which they shall be authorized to be issued.
(f)
There may be retained, by provision made in the proceedings under which any revenue bonds or revenue notes of the commission are authorized to be issued, an option to redeem all or any part thereof at such prices and upon such notice, and on such further terms and conditions, as shall be set forth on the record of the proceedings and on the face of the revenue bonds and notes.
(g)
Any revenue bonds or revenue notes of the commission may be sold, from time to time, at such prices, at public or private sale, and in such manner as shall be determined by the commission, and the commission shall pay all expenses, premiums, and commissions that it shall deem necessary or advantageous in connection with the issuance and sale thereof.
(h)
Moneys of the commission, including proceeds from the sale of revenue bonds or revenue notes, and revenues, receipts, and income from any of its sewage treatment facilities, may be invested and reinvested in such obligations, securities, and other investments consistent with this chapter, and to the extent permitted by the general laws of the state of Rhode Island, and/or as shall be specified in the resolutions under which the revenue bonds or revenue notes are authorized.
(i)
Issuance by the commission of one or more series of revenue bonds or revenue notes for one or more purposes shall not preclude it from issuing other revenue bonds or revenue notes, but the proceedings whereunder any subsequent revenue bonds or revenue notes may be issued shall recognize and protect a prior pledge or mortgage made for a prior issue of revenue bonds or revenue notes, unless in the proceedings authorizing the prior issue, the right is reserved to issue subsequent revenue bonds or revenue notes on a parity with the prior issue.
(j)
The commission is authorized to issue revenue bonds or revenue notes for the purpose of refunding its revenue bonds or revenue notes then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity, of the revenue bonds or revenue notes, and, if deemed advisable by the commission, for the additional purpose of paying all or part of the cost of acquiring, financing, extending, operating, maintaining, constructing, reconstructing, rehabilitating, developing, planning, or improving any sewage treatment facility. The proceeds of revenue bonds or revenue notes issued for the purpose of refunding outstanding revenue bonds or revenue notes may be applied, in the discretion of the commission, to the purchase, retirement at maturity, or redemption of the outstanding revenue bonds or revenue notes either on their earliest or a subsequent redemption date, and may, pending an application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of the United States and, to the extent permitted by the proceedings authorizing the issuance of the revenue bonds to be refunded, in obligations guaranteed by the United States, or in certificates of deposit or time deposits secured or guaranteed by the state of Rhode Island or the United States, or an instrumentality of either, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding revenue bonds or revenue notes to be so refunded. To the extent permitted by applicable laws, the interest, income, and profits, if any, earned or realized on any investment may also be applied to the payment of the outstanding revenue bonds or revenue notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof, may be returned to the commission for its use. The portion of the proceeds of revenue bonds or revenue notes issued for the additional purpose of paying all or part of the cost of acquiring, financing, extending, operating, maintaining, constructing, reconstructing, rehabilitating, developing, planning, or improving any sewage treatment facility, may be invested and reinvested in such obligations, securities, and other investments consistent herewith as shall be specified in the resolutions under which the revenue bonds or revenue notes are authorized, and which shall mature not later than the times when the proceeds will be needed for such purposes. To the extent permitted by applicable laws, the interest, income, and profits, if any, earned or realized on the investments may be applied to the payment of all parts of the costs or may be used by the commission otherwise in furtherance of its purposes.
(k)
The members, the chairperson of the commission, the executive director, and other persons executing the revenue bonds or revenue notes shall not be subject to personal liability or accountability by reasons of the issuance thereof.
(l)
Revenue bonds or revenue notes may be issued under the provisions of this section without obtaining the consent of any department, division, commission, board, body, bureau, or agency of the state of Rhode Island, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions, or things which are specifically required by this section and by the provisions of the resolution authorizing the issuance of the revenue bonds or revenue notes or the trust agreement securing the bonds or notes.
(m)
Notwithstanding the foregoing, the commission shall not issue any bonds, notes, or other evidence of indebtedness without the approval of the division of public utilities as required by § 39-3-15.
(n)
The commission, subject to such agreements with noteholders or bondholders as may then be in force, shall have the power, out of any funds available therefor, to purchase revenue bonds or revenue notes of the commission, which shall thereupon be cancelled, at a price not exceeding:
(1)
If the revenue bonds or revenue notes are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date, or
(2)
If the revenue bonds or revenue notes are not then redeemable, the redemption price applicable on the earliest date that the revenue bonds or revenue notes become subject to redemption, plus the interest that would have accrued to such date.
(o)
Whether or not the revenue bonds and notes are of such form and character as to be negotiable instruments under the terms of the Rhode Island Uniform Commercial Code, the revenue bonds and notes are hereby made negotiable instruments within the meaning of and for all the purposes of the Rhode Island Uniform Commercial Code.
(p)
If a member or officer of the commission whose signature appears on revenue bonds, revenue notes, or coupons shall cease to be a member or officer before the delivery of the revenue bonds or revenue notes, the signature shall, nevertheless, be valid and sufficient for all purposes, the same as if the member or officer had remained in office until the delivery.
History of Section.
P.L. 1989, ch. 557, § 3.