2009 Rhode Island Code
Title 46 - Waters and Navigation
CHAPTER 46-12.8 - Water Projects Revolving Loan Fund
§ 46-12.8-9 - Power of local governmental units to issue limited obligations payable from drinking water system revenues.

SECTION 46-12.8-9

   § 46-12.8-9  Power of local governmental units to issue limited obligations payable from drinking water system revenues. – (a) If required by the applicable loan agreement, and notwithstanding any general or special law, municipal charter, ordinance or local law to the contrary, local governmental obligations may be authorized and issued as limited obligations payable solely from drinking water system revenues pledged to their payment in accordance with § 46-12.8-10. Notwithstanding § 45-12-2 or any general or special law, municipal charter, ordinance or local law to the contrary, all local governmental units shall have the power to authorize and issue local governmental obligations payable solely from drinking water system revenues pursuant to this section without limit as to amount, and the amount of principal and premium, if any, and interest on the obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes which may be levied or assessed by the local governmental unit in any year or on any assessment, levy, or other charge made by the local governmental unit on any other political subdivision or instrumentality of the state. Limited obligations shall be authorized by the affirmative vote of the legislative body of the local governmental unit, notwithstanding the provisions of any general or special law, municipal charter, ordinance or local law requiring further approval of general obligations of the local governmental unit and this chapter shall constitute the bond act for the authorization and issuance of the local governmental obligations payable solely from drinking water system revenues by local governmental units. Any local governmental obligations issued in accordance with this section that are payable solely from drinking water system revenues shall recite on their face that they are limited obligations payable solely from drinking water system revenues pledged to their payment and that they are not secured by a pledge of the full faith and credit of the local governmental unit.

   (b) The authorization, issuance and sale of local governmental obligations in accordance with this section, the maturity or maturities and other terms of the obligations, the security for the obligations, the rights of the holders of the obligations, and the rights, duties, and obligations of the local governmental unit in respect of the same, and the form details and manner of sale of the obligations shall be governed by the provisions of this chapter relating to local governmental obligations generally to the extent applicable and not inconsistent with this section.