2009 Rhode Island Code
Title 46 - Waters and Navigation
CHAPTER 46-15.1 - Water Supply Facilities
§ 46-15.1-10 - Bonds.

SECTION 46-15.1-10

   § 46-15.1-10  Bonds. – (a) The board may borrow money for capital purposes under this chapter and for the purposes of chapter 15.3 of this title and issue its bonds therefor. Those purposes may include all costs (whether incurred prior to or after the issue of bonds or notes hereunder) of purchase or lease of property, site development, construction, improvement, enlargement, reconstruction, alteration, equipment, furnishings, demolition, or removal of existing buildings or structures (including the cost of purchasing or leasing any lands to which those buildings or structures may be moved), financing charges, interest prior to and during the carrying out of any project, interest for up to one year after the completion or estimated completion date of any project, planning, engineering, and legal services, administrative expenses, the funding of notes issued by the board for those purposes, the refinancing of bonds or notes issued by any city, town, district or other municipal, quasi municipal, or public corporation for those purposes, the reserves for debt service or other capital or current expenses as may be required by a trust agreement or resolution securing notes or bonds, and all other expenses incidental to the determination of the feasibility of any project or to carrying out the project or to placing the project in operation.

   (b) Bonds shall be payable solely from such funds as are derived under this chapter or chapter 15.3 of this title including, without limiting the generality of the foregoing, revenues derived from pledges of water fees and charges from leasing any water supply facilities to any city, town, district, or other municipal, quasi municipal or public or private corporation or company engaged in the water supply business in Rhode Island, or water quality protection charges imposed under chapter 15.3 of this title, or funds in the watershed protection fund established under chapter 15.3 of this title and provided for payment under the applicable trust agreement or resolution described in § 46-15.1-11, and shall contain a statement to this effect on their face.

   (c) The bonds of each issue shall be dated, shall bear interest at such rate or rates, shall mature at such time or times not exceeding forty (40) years from their dates of issue, as may be determined by the board, and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the board prior to the issue of the bonds. The board shall determine the form of the bonds, including interest coupons to be attached thereto, and the manner of their execution, 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 bear the seal of the board or a facsimile thereof.

   (d) In case any officer whose signature or a facsimile of whose signature shall appear on any bonds, coupons, or notes issued by the board shall cease to be an officer before the delivery thereof, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until after the delivery.

   (e) The bonds may be issued in coupon or in registered form, or both, as the board may determine, the 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 as to both principal and interest, and for the interchange of registered and coupon bonds. The board may sell its bonds and notes in such manner, either at public or private sale, and for such price, as it may determine will best effect the purposes of this chapter.

   (f) Prior to the preparation of definitive bonds, the board may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when those bonds shall have been executed and are available for delivery. The board may also provide for the replacement of any bonds, notes, or coupons which shall become mutilated or shall be destroyed or lost.

   (g) Bonds and notes may be issued under this chapter without obtaining the consent of any other 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 for the issue of those bonds or notes.