2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-38.1 - Health And Educational Building Corporation
§ 45-38.1-19 - State not liable.

SECTION 45-38.1-19

   § 45-38.1-19  State not liable. – (a) Except with regard to state reimbursement related to school housing project financing, the state is not liable for the payment of the principal of or interest on any bonds or notes of the corporation, or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds or notes of the corporation nor any of its agreements or obligations, except for state reimbursement related to school housing project financing, are construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds or notes, under the provisions of this chapter, directly or indirectly or contingently obligate the state or any municipality or political subdivision of the state to levy or to pledge any form of taxation for them or to make any appropriation for their payment, except for state reimbursement for school housing projects. All of the revenue bonds or notes shall contain on the face a statement to the effect that neither the state nor the corporation are obligated to pay the revenue bonds or notes, or their interest except from revenues of the project or projects for which they are issued, and that neither the faith and credit nor the taxing power of the state or of any municipality or political subdivision of the state is pledged to the payment of the principal of or the interest on those bonds or notes; provided, however, that in connection with any state housing project financing, the statement on the face of the bonds shall also include an exception for state reimbursement.

   (b) Nothing contained in this section shall prevent nor be construed to prevent the corporation from pledging its full faith and credit or the full faith and credit of a participating institution for higher education or health care provider to the payment of bonds or notes, or issue of bonds or notes authorized pursuant to this chapter.