(a) A city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to pay the uninsured portion of any court judgment or settlement, except any court judgment or settlement arising out of any pension obligation of a city or town; provided, however, that the outstanding principal amount, in aggregate, shall not exceed five percent (5%) of the total amount of the city or town's most recently adopted municipal budget. Notwithstanding the aforementioned, the towns of Coventry and Middletown are authorized to issue bonds, notes, or other evidences of indebtedness to pay the uninsured portion of any court judgment or settlement, except any court judgment or settlement arising out of any pension obligation of a city or town; provided, however, that the outstanding principal amount, in aggregate, shall not exceed ten percent (10%) of the total amount of the applicable municipality's most recently adopted municipal budget.
(b) These bonds, notes, or other evidences of indebtedness are subject to the maximum aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.
(c) 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 § 45-12-4.1.
(d) The denominations, maturities, interest rates, methods of sale, and other terms, conditions, and details of any bonds or notes issued under the provisions of this section may be fixed by the vote or resolution of the city or town council authorizing them, or if no provision is made in the vote or resolution, by the treasurer or other officer authorized to issue the bonds or notes or to hire the money; provided, that the payment of principal of bonds shall be by sufficient annual payments that will extinguish the debt 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.
(e) The bonds, notes, or other evidences of indebtedness may be issued under this section by any political subdivision without obtaining the approval of its electors, notwithstanding the provisions of §§ 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.
History of Section.
P.L. 1988, ch. 447, § 1; P.L. 1994, ch. 398, § 1; P.L. 1999, ch. 505, § 1; P.L. 2000, ch. 55, art. 19, § 8; P.L. 2012, ch. 119, § 1; P.L. 2012, ch. 127, § 1; P.L. 2013, ch. 2, § 1; P.L. 2013, ch. 10, § 1.