2023 Rhode Island General Laws › Title 46 - Waters and Navigation › Chapter 46-25 - Narragansett Bay Commission › Section 46-25-60. - Reserve funds and appropriations.

§ 46-25-60. Reserve funds and appropriations.
To assure the continued operation and solvency of the commission for the carrying out of its corporate purposes:
(1)
The commission may create and establish one or more special funds (herein referred to as
“capital reserve funds”
), and may pay into each capital reserve fund:
(i)
Proceeds from the sale of revenue notes or revenue bonds, to the extent provided in the resolution or resolutions of the commission authorizing the issuance thereof; and
(ii)
Any other money that may be made available to the commission for the purpose of the fund from any other source. All money held in a capital reserve fund, except as hereinafter provided, shall be used solely for the payment of the principal of revenue bonds secured in whole or in part by the fund or of the sinking fund payments hereinafter mentioned with respect to the revenue bonds, the purchase or redemption of the revenue bonds, the payment of interest on the revenue bonds, or the payment of any redemption premium required to be paid when the revenue bonds are redeemed prior to maturity, provided, that money in the fund shall not be withdrawn therefrom, except for the purpose of making (with respect to revenue bonds secured in whole or in part by the fund) payment when due of principal, interest, redemption premiums, and the sinking fund payments hereinafter mentioned, for the payment of which other money of the commission are not available, if the withdrawal would reduce the amount of the fund to less than the minimum capital reserve requirement established for the fund as hereinafter provided. Any income or interest earned by, or incremental to, any capital reserve fund because of the investment of the funds thereof, may be transferred by the commission to other funds or accounts of the commission if the transfer would not reduce the amount of the capital reserve fund below the minimum capital reserve fund requirement for such fund.
(2)
The commission shall not at any time issue revenue bonds secured in whole or in part by a capital reserve fund if, upon the issuance of the revenue bonds, the amount of the capital reserve fund would be less than the minimum capital reserve required for the fund, unless the commission, at the time of issuance of the revenue bonds, shall deposit in the fund from the proceeds of the revenue bonds so to be issued, or from other sources, an amount that, together with the amount then in the fund, is not less than the minimum capital reserve fund requirement for the fund. For the purpose of this section, the term
“minimum capital reserve fund requirement”
shall mean, as of any particular date of computation, an amount of money, as provided in the resolution or resolutions of the commission authorizing the revenue bonds or revenue notes with respect to which the fund is established, equal to not more than the greatest of the respective amounts, for the current or any future fiscal year of the commission, of annual debt service on the revenue bonds of the commission secured in whole or in part by the fund, the annual debt service for any fiscal year being the amount of money equal to the sum of:
(i)
The interest payable during the fiscal year on all revenue bonds secured in whole or in part by the fund outstanding on the date of computation; plus
(ii)
The principal amount of all the revenue bonds and revenue bond anticipation notes outstanding on the date of computation that mature during the fiscal year; plus
(iii)
All amounts specified in any resolution of the commission authorizing the revenue bonds as payable during the fiscal year as a sinking fund payment with respect to any of the revenue bonds that mature after the fiscal year, all calculated on the assumption that the revenue bonds will after the date of computation, cease to be outstanding by reason, but only by reason, of the payment of revenue bonds when due and application in accordance with the resolution authorizing those revenue bonds of all of the sinking fund payments payable at or after the date of computation.
(3)
In computing the amount of the capital reserve funds for the purpose of this section, securities in which all or a portion of the funds shall be invested, shall be valued as provided in the proceedings under which the revenue bonds are authorized, but in no event shall be valued at a value greater than par.
(4)
The commission may create and establish such other fund or funds as may be necessary or desirable for its purposes, including, but not limited to, providing for an insurance reserve fund and a replacement reserve fund.
(5)
The commission may by resolution permit the issuance of revenue bonds and notes to carry out the purposes of this chapter without establishing a capital reserve fund pursuant to this section and without complying with the limitations set forth in this section. Revenue bonds and notes issued pursuant to this subsection may be secured by such other funds or methods as the commission may in its discretion determine by resolution.
History of Section.
P.L. 1989, ch. 557, § 3.