Rhode Island General Laws 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.
History of Section.
P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-12; P.L. 1990, ch. 16, § 1.
Terms Used In Rhode Island General Laws 39-16-12
- Authority: means the corporation created by § 39-16-3. See Rhode Island General Laws 39-16-1
- Bonds: means the bonds, notes, or other obligations issued by the authority pursuant to this chapter. See Rhode Island General Laws 39-16-1
- Commission: means the public utilities commission. See Rhode Island General Laws 39-1-2
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Property: means any or all of the properties of any water supply and distribution system or part thereof, including plants, works, and instrumentalities, and all properties used or useful in connection therewith, and all parts thereof and all appurtenances thereto, including lands, easements, rights in land and water rights, rights-of-way, contract rights, franchises, approaches, connections, dams, reservoirs, water mains and pipelines, pumping stations and equipment, or any other property incidental to and included in the system or part thereof situated within or without the district. See Rhode Island General Laws 39-16-1