(a) The authority is authorized to provide by resolution for the issuance, at one time, or from time to time, of revenue bonds of the authority for the purpose of paying all or a part of the cost of any one or more projects, the construction or acquisition of which is authorized by this chapter. The principal of and the interest on the bonds shall be payable from the funds provided for payment. The bonds of each issue shall be dated, bear interest at a rate or rates that the authority determines, payable from time to time, shall mature at a time or times not exceeding forty (40) years from their date or dates, as may be determined by the authority, and may be redeemable before maturity, at the option of the authority, at a price or prices and under terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of bonds, including any interest coupons to be attached to them, and shall fix the denomination or denominations of the bonds and 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. The bonds shall be signed by the chairperson of the authority or a facsimile shall be impressed or imprinted on the bonds and attested by the manual or facsimile signature of the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer, whose signature or facsimile of whose signatures appears on any bonds or coupons, ceases to be an officer before the delivery of the bonds, the signature or the facsimile is nevertheless valid and sufficient for all purposes the same as if he or she had remained in office until the delivery. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone, and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered and coupon bonds. The authority may sell bonds in a manner, either at public or private sale, and for a price that it may determine will best effect the purposes of this chapter.
(b) The proceeds of the bonds of each issue shall be used for the payment of the cost of the project or projects for which the bonds have been issued, and shall be disbursed in a manner and under restrictions, if any, that the authority may provide in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds. If the proceeds of the bonds of any issue, by error of estimates, are less than the cost, additional bonds may in the same manner be issued to provide the amount of the deficit, and, unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds, are deemed to be of the same issue and are entitled to payment from the same fund without preference of priority of the bonds first issued. If the proceeds of the bonds of any issue exceed the cost, the surplus shall be deposited to the credit of the sinking fund for the bonds, or may be applied to the payment of the cost of any project financed under the provisions of this chapter.
(c) Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when definitive bonds have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which become mutilated or are destroyed or lost. Bonds, other than school housing bonds pursuant to chapter 7 of title 16, may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, and without any other proceedings or the happening of any other conditions, or things, than those proceedings, conditions, or things which are specifically required by this chapter. All bonds, notes and other forms of indebtedness, other than interim finance mechanisms, issued in support of school housing projects shall require passage of an enabling act by the general assembly.
(d) However, in no event shall the authority borrow in principal amount for any one bond issue more than fifteen percent (15%) of the total of the most recent adopted municipal budget. In addition, the total outstanding principal amount of bonds of the authority shall not exceed fifty percent (50%) of the most recent adopted municipal budget; provided, however, that there shall not be included in the calculation of this limitation fifty percent (50%) of the outstanding principal amount of any bonds issued for projects for which the authority or the municipality receives school housing aid pursuant to §§ 16-7-44 and 16-7-41.
History of Section.
P.L 1987, ch. 475, § 1; P.L. 1989, ch. 466, § 1; P.L. 2000, ch. 473, § 1; P.L. 2000, ch. 494, § 1; P.L. 2007, ch. 222, § 2; P.L. 2007, ch. 236, § 2.