Rhode Island General Laws 45-58-12. Money of the utility district
(a) All money of the utility district, from whatever source derived, shall be paid to the treasurer of the utility district. The money on receipt shall be deposited forthwith in a separate bank account or accounts. The money in the accounts shall be paid out with a check of the treasurer, on requisition by the utility district, or of any other person or persons that the utility district may authorize to make the requisitions. All deposits of money shall be secured by obligations of the United States or of the state, of a market value at all times not less than the amount of deposits, and all banks and trust companies are authorized to give security for the deposits. The utility district shall have the power, notwithstanding the provisions of this section, to contract with the holders of any of its bonds as to the custody, collection, security, investment and payment of any money of the authority, or any money held in trust or otherwise for the payment of bonds or in any way to secure the bonds, and to carry out any contract notwithstanding that the contract may be inconsistent with the previous provisions of this section. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of money may be secured in the same manner as the money of the authority, and all banks and trust companies are authorized to give security for the deposits.
Terms Used In Rhode Island General Laws 45-58-12
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
- United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8
- Utility district: means the Pascoag utility district, a quasi-municipal corporation, district and political subdivision of the state established and empowered by this chapter to:
(i) Succeed to and fulfill the electric and water utility functions, powers, rights, property and obligations heretofore held and fulfilled by the Pascoag fire district created by the act passed at the May session 1887, entitled "An Act to Incorporate the Pascoag Fire District" as thereafter amended and supplemented from time to time;
(ii) Exercise certain additional powers as a water supplier, an electric distribution company and as a nonregulated power producer; and
(iii) To provide additional utility services not inconsistent with the duties, powers and obligations of the utility district as defined in this section. See Rhode Island General Laws 45-58-2
(b) Notwithstanding subsection (a) of this section, or any other provision of this chapter, the board of utility commissioners shall have the power to authorize by resolution a loan or advance from one utility fund of the utility district to another. Any such interfund advance or loan shall be for a term specified in the authorizing resolution of the board of utility commissioners and shall bear interest at a rate reasonably determined by the board of utility commissioners to be consistent with the public interest implicated in all funds involved in the interfund loan or advance; provided, however, that an interest rate set at the rate applicable to the utility district’s most recent borrowing from a bank or other financial institution shall be presumptively reasonable as the rate of interest for an interfund loan or advance.
History of Section.
P.L. 2001, ch. 12, § 1; P.L. 2001, ch. 47, § 1.