R.I. Gen. Laws § 39-16-12

Current through 2024 Public Law 457

Section 39-16-12 - Covenants permissible in bond resolution

Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions that shall be a part of the contract with the holders of the bonds thereby authorized, as to:

(1) Pledging all or any part of the money, earnings, income, and revenues derived from all or any part of the property of the authority to secure the payment of any bonds or of any issue of bonds subject to such agreements with bondholders as may then exist;

(2) The rates to be fixed and the charges to be collected and the amounts to be raised in each year, and the use and disposition of the earnings and other revenues;

(3) The setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof;

(4) Limitations on the right of the authority to restrict and regulate the use of the properties in connection with which the bonds are issued;

(5) Limitations on the purposes to which the proceeds of sale of any issue of bonds may be applied;

(6) Limitations on the issuance of additional bonds, including refunding bonds and the terms upon which additional bonds may be issued and secured;

(7) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given;

(8) The creation of special funds into which any earnings or revenues of the authority may be deposited, and the investment of the funds;

(9) The appointment of a fiscal agent and the determination of its powers and duties;

(10) Limitations on the power of the authority to sell or otherwise dispose of its properties;

(11) The preparation of annual budgets by the authority and the employment of consulting engineers and auditors;

(12) The rights and remedies of bondholders in the event of failure on the part of the authority to perform any agreement;

(13) Covenanting that as long as any bonds are outstanding the authority shall use its best efforts to establish and maintain its rates and charges adequate at all times to pay and provide for all operating expenses of the authority, all payments of principal, redemption premium, if any, and interest on bonds, notes, or other evidences of indebtedness of or assumed by the authority, all renewals, repairs, or replacements to the property of the authority deemed necessary, and all other amounts that the authority may by law, resolution, or contract be obligated to pay. On or before the last day of the authority's fiscal year, the authority shall review the adequacy of its rates and charges to satisfy the above requirements for the next succeeding fiscal year. If the review indicates that the rates and charges are, or are likely to be, insufficient to meet the requirements of this chapter, the authority shall promptly take such steps as are permitted by law and as are necessary to cure or avoid the deficiency, including but limited to, making an emergency request to the public utilities commission to raise its rates and charges;

(14) Any other matters, of like or different character that in any way affect the security or protection of the bonds.

R.I. Gen. Laws § 39-16-12

P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-12; P.L. 1990, ch. 16, § 1.