(a)  Obligations issued under the provisions of this chapter, except those obligations secured by mortgages which are insured by the industrial building authority, shall not constitute a debt, liability or obligation of the state or of any political subdivision of the state other than the Rhode Island commerce corporation or a pledge of the faith and credit of the state or any political subdivision other than the corporation but shall be payable solely from the revenues or assets of the corporation. Each obligation issued under this chapter, except those obligations secured by mortgages which are insured by the industrial building authority, shall contain on its face a statement to the effect that the corporation shall not be obligated to pay the obligation or interest on the obligation except from revenues or assets pledged therefor and that neither the faith and credit nor the taking power of the state or any political subdivision of the state other than the corporation is pledged to the payment of the principal of or the interest on the obligation.

lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Rhode Island General Laws 42-64-23

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • authority: means the governmental agency and public instrumentality, formerly known as the "Rhode Island port authority and economic development corporation" and/or also formerly known as the "Rhode Island economic development corporation" and now known as the Rhode Island commerce corporation authorized, created, and established pursuant to § 42-64-4, or any subsidiary corporation thereof which is established pursuant to Rhode Island General Laws 42-64-3
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Revenues: means : (i) with respect to any project, the rents, fees, tolls, charges, installment payments, repayments, and other income or profit derived from a project or a combination of projects pursuant to any lease, conditional sales contract, installment sales contract, loan agreement, or other contract or agreement, or any combination thereof, and (ii) any receipts, fees, payments, moneys, revenues or other payments received or to be received by the corporation in the exercise of its corporate powers under this chapter, including, without limitation, loan repayments, grants, aid, appropriations and other assistance for the state, the United States or any corporation, department or instrumentality of either or of a political subdivision thereof, bond proceeds, investment earnings, insurance proceeds, amounts in reserves and other funds and accounts established by or pursuant to this chapter or in connection with the issuance of bonds, and any other taxes, assessments, fees, charges, awards or other income or amounts received or receivable by the corporation. See Rhode Island General Laws 42-64-3
  • State: means the state of Rhode Island. See Rhode Island General Laws 42-64-3

(b)  Obligations issued under the provisions of this chapter which are secured by mortgages insured by the industrial building authority, in addition to being payable from the revenues or assets of the corporation, shall be secured by a pledge of the faith and credit of the state consistent with the terms and limitations of chapter 34 of this title.

History of Section.
P.L. 1974, ch. 100, § 14; P.L. 1975, ch. 129, § 2; P.L. 2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.