Rhode Island Code of Regulations › Title 870 - Rhode Island Commerce Corporation › Chapter 30 - Tax Credits and Exemptions › Subchapter 00 - N/A › Part 6 - Rules and Regulations for the Rhode Island Tax Increment Financing Act › Section 870-RICR-30-00-6.18 - Corporation TIF Fund

Current through June 14, 2024
A. An Applicant who
							is granted an exemption as a significant taxpayer under R.I. Gen. Laws §
										42-64.21-5(d) 
							shall make payments in lieu of taxes of all exempted amounts directly to the
							Corporation or as directed by the Corporation to a bond trustee. Except to the
							extent assigned to a bond trustee pursuant to §
										6.18(D)     of
							this Part, all payments in lieu of taxed collected from an Applicant shall,
							promptly upon receipt by the Corporation, be deposited into the Corporation TIF
							Fund. There shall also be deposited into the Corporation TIF Fund the proceeds
							of any bonds issued by the Corporation pursuant to §
										6.18(D)     of
							this Part.
B. Amounts in the
							Corporation TIF Fund shall be used to fund the making of TIF Payments by the
							Corporation to any Developer in accordance with the TIF Agreement in respect of
							such Developer's Qualified Development Project. The Corporation shall establish
							separate accounts within the Corporation TIF Fund to account for the receipt
							and application of specific funds in support of each separate Qualified
							Development Project to be funded from the Corporation TIF Fund. Up to the
							amount provided in the related TIF Agreement, moneys deposited into the
							Corporation TIF Fund with respect to a particular Qualified Development Project
							shall be used only for that purpose, unless the Corporation determines that any
							such amount is no longer needed or eligible for payment.
C. As provided in R.I. Gen. Laws Chapter
							42-64, the Corporation may issue bonds from time to time in order to fund a
							deposit into the Corporation TIF Fund. A resolution authorizing such bonds may
							either identify the particular TIF Agreement(s) and the related Qualified
							Development Project(s) for which TIF Payments are to be funded through the bond
							proceeds, or may provide that the disposition of bond proceeds shall be
							determined by subsequent resolution of the Corporation. Such resolution shall
							also specify the payments in lieu of taxes that will secure the repayment of
							such bonds, which may constitute all or any portion or percentage of such
							payments in lieu of taxes derived from all or any combination of present and/or
							future TIF Agreements. The debt service on the bonds shall be structured to
							correspond to the projected receipt of such payments in lieu of
							taxes.
D. If the Corporation issues
							bonds pursuant to §
										6.18(C)     of
							this Part, the Corporation shall pledge and assign the payments in lieu of
							taxes specified in the resolution authorizing such bonds directly to the bond
							trustee for such bonds, as payment or security for the bonds. Such pledge and
							assignment shall be an absolute assignment of all of the Corporation's right,
							title and interest in such payments in lieu of taxes, notwithstanding the
							Corporation's continuing enforcement of said payments on behalf of the bond
							trustee.
E. Obligations issued
							under the provisions of these Rules shall not constitute a debt, liability or
							obligation of the State or of any political subdivision of the State other than
							the Corporation or a pledge of the faith and credit of the State or any
							political subdivision other than the Corporation but shall be payable solely
							from the payment in lieu of taxes pledged by the Corporation. Each obligation
							issued by the Corporation shall contain on its face a statement to the effect
							that the Corporation shall not be obligated to pay the obligation or interest
							on the obligation except from revenues or assets pledged therefor and that
							neither the faith and credit nor the taking power of the State or any political
							subdivision of the State other than the Corporation is pledged to the payment
							of the principal of or the interest on the obligation.