(a)  Notwithstanding any general or special law to the contrary, local governmental obligations issued in accordance with this chapter may be secured by one or more trust agreements, including, or in addition to the applicable loan agreement, between the local governmental unit and a corporate trustee, which may be a trust company or bank having the powers of a trust company within or without the state, or directly between the agency and the local governmental unit. Any trust agreement shall be in such form and shall be executed as provided in the applicable loan agreement or as otherwise agreed to between the agency and the local governmental unit.

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Terms Used In Rhode Island General Laws 46-12.2-13

  • Agency: means the Rhode Island clean water finance agency, and, effective September 1, 2015, and thereafter, shall mean the Rhode Island infrastructure bank;

    (2)  "Approved project" means any project or portion thereof that has been issued a certificate of approval by the department for financial assistance from the agency, and also includes any project approved for financial assistance from the agency in accordance with state law, and, furthermore, shall include water pollution abatement projects funded outside of the water pollution control revolving fund, the Rhode Island water pollution control revolving fund, or the local interest subsidy trust fund, without the requirement of the issuance of a certificate of approval; and, furthermore, shall include resiliency related infrastructure projects, and projects which may, subject to compliance with all state and federal requirements, include state and federal infrastructure located within the state of Rhode Island;

    (3)  "Board" means the board of directors of the agency;

    (4)  "Bond act" means any general or special law authorizing a local governmental unit to incur indebtedness for all or any part of the cost of projects coming within the scope of a water pollution abatement project, or for other projects related to this chapter, including but not limited to, § 45-12-2;

    (5)  "Bonds" means bonds, notes, or other evidence of indebtedness of the agency;

    (6)  "Certificate of approval" means the certificate of approval contemplated by Rhode Island General Laws 46-12.2-2

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Fiduciary: A trustee, executor, or administrator.
  • General revenues: when used with reference to a local governmental unit, means revenues, receipts, assessments, and other moneys of the local governmental unit received from or on account of the exercise of its powers and all rights to receive the same, including without limitation:

    (i)  Taxes;

    (ii)  Wastewater system revenues;

    (iii)  Assessments upon or payments received from any other local governmental unit that is a member or service recipient of the local governmental unit, whether by law, contract, or otherwise;

    (iv)  Proceeds of local governmental obligations and loans and grants received by the local governmental unit in accordance with this chapter;

    (v)  Investment earnings;

    (vi)  Reserves for debt service or other capital or current expenses;

    (vii)  Receipts from any tax, excise, or fee heretofore or hereafter imposed by any general or special law all or a part of the receipts of which are payable or distributable to or for the account of the local governmental unit;

    (viii)  Local aid distributions; and

    (ix)  Receipts, distributions, reimbursements, and other assistance received by or for the account of the local governmental unit from the United States or any agency, department, or instrumentality thereof;

    (15)  "Loan" means a loan by the agency to a local governmental unit, or person, or corporation for costs of an approved project, including, without limitation, temporary and permanent loans, and lines of credit;

    (16)  "Loan agreement" means any agreement entered into by the agency with a local governmental unit, person, or corporation pertaining to a loan, other financial assistance, local governmental obligations, or non-governmental obligations, including, without limitation: a loan agreement, trust agreement, security agreement, reimbursement agreement, guarantee agreement, financing lease agreement, appropriation agreement, or similar instrument;

    (17)  "Local aid distributions" means receipts, distributions, reimbursements, and other assistance payable by the state to or for the account of a local governmental unit, except such receipts, distributions, reimbursements, and other assistance restricted by law to specific statutorily defined purposes;

    (18)  "Local governmental obligations" means bonds, notes, financing lease obligations, appropriation obligations, and other evidences of indebtedness in fully marketable form issued by a local governmental unit to evidence a loan or other financial assistance, from the agency in accordance with this chapter or otherwise as provided herein;

    (19)  "Local governmental unit" means any town, city, district, commission, agency, authority, board, bodies politic and corporate, public corporation, or other political subdivision or instrumentality of the state or of any political subdivision thereof, including the Narragansett Bay commission; and, for purposes of dam safety or dam maintenance projects, any person seeking financial assistance as a joint applicant with any of the above entities;

    (20)  "Local interest subsidy trust fund" means the local interest subsidy trust fund established under Rhode Island General Laws 46-12.2-2

  • Revenues: when used with reference to the agency, means any receipts, fees, payments, moneys, revenues, or other payments received or to be received by the agency in the exercise of its corporate powers under this chapter, including, without limitation: loan repayments, payments on local governmental obligations, non-governmental obligations, grants, aid, appropriations, and other assistance from the state, the United States, or any agency, 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, including, without limitation, the water pollution control revolving fund, the Rhode Island water pollution control revolving fund, and the local interest subsidy fund, and any other fees, charges or other income received or receivable by the agency;

    (27)  "Rhode Island water pollution control revolving fund" means the Rhode Island water pollution control revolving fund established pursuant to Rhode Island General Laws 46-12.2-2

  • Trust agreement: means a trust agreement, loan agreement, security agreement, reimbursement agreement, currency or interest rate exchange agreement, or other security instrument, and a resolution, loan order, or other vote authorizing, securing, or otherwise providing for the issue of bonds, loans, or local governmental obligations or non-governmental obligations;

    (29)  "Wastewater system revenues" means all rates, rents, fee assessments, charges, and other receipts derived or to be derived by a local governmental unit from wastewater collection and treatment facilities and water pollution abatement projects under its ownership or control, or from the services provided thereby, including, without limitation: proceeds of grants, gifts, appropriations, and loans, including the proceeds of loans or grants awarded by the agency or the department in accordance with this chapter, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation, and the sale or other disposition of property; wastewater system revenues may also include rates, rents, fees, charges, and other receipts derived by the local governmental unit from any water supply of distribution facilities or other revenue producing facilities under its ownership or control; wastewater system revenues shall not include any ad valorem taxes levied directly by the local governmental unit on any real and personal property;

    (30)  "Water pollution abatement project" or "project" means any project eligible pursuant to Title VI of the Clean Water Act including, but not limited to, a wastewater treatment or conveyance project that contributes to removal, curtailment, or mitigation of pollution of the surface water of the state, and conforms with any applicable comprehensive land use plan which has been adopted or any dam safety, removal or maintenance project; it also means a project to enhance the waters of the state, which the agency has been authorized by statute to participate in; it also means any other project to which the agency has been authorized to provide financial assistance;

    (31)  "Water pollution control revolving fund" means the water pollution control revolving fund contemplated by title VI of the Water Quality Act and established under Rhode Island General Laws 46-12.2-2

  • Trustee: A person or institution holding and administering property in trust.

(b)  Any trust agreement directly or indirectly securing local governmental obligations may, in addition to other security provided by law, pledge or assign, and create security interests in, all or any part of the general revenues of the local governmental unit. Any trust agreement may contain such provisions for protecting and enforcing the rights, security, and remedies of the agency, or other holders of the local governmental obligations, as may be determined by the agency including, without limitation, provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities to the extent permitted by law, and covenants setting forth the duties of, and limitations on, the local governmental unit in relation to the custody, safeguarding, investment, and application of moneys, including general revenues and wastewater system revenues, the issue of additional and refunding local governmental obligations and other bonds, notes, or obligations on a parity or superior thereto, the establishment of reserves, the establishment of sinking funds for the payment of local governmental obligations, and the use of surplus proceeds of local governmental obligations. A trust agreement securing local governmental obligations issued in accordance with § 46-12.2-12 may also include covenants and provisions not in violation of law regarding the acquisition, construction, operation, and carrying out of the approved project financed by the local governmental obligations, the wastewater system of which it is a part, and any other revenue producing facilities from which the local governmental unit may derive wastewater system revenues or other general revenues, the fixing and collection of wastewater system revenues or other general revenues, and the making and amending of contracts relating thereto.

(c)  In addition to other security provided herein or otherwise by law, any local governmental obligations issued under authority of this chapter may be secured, in whole or in part, by insurance or by letters or lines of credit or other credit facilities issued by any insurance company, bank, trust company, or other financial institution, within or without the state, and a local governmental unit may pledge subject to applicable voter approval requirements, assign, or appropriate any of its general revenues or wastewater system revenues, as appropriate, as security for the reimbursement to the issuers of insurance, letters, or lines of credit or other credit facilities of any payments made thereunder.

(d)  Any trust agreement may set forth the rights and remedies of the agency or other holders of the local governmental obligations secured thereby and of any trustee or other fiduciary thereunder.

(e)  In addition to any other remedies provided under the applicable loan agreement or otherwise by law, the agency and any other holder of local governmental obligations issued under the provisions of this chapter, and any trustee under any trust agreement securing the obligations may bring suit in the superior court upon the local governmental obligations, and may, either at law or in equity, by suit, action, mandamus, or other proceeding for legal or equitable relief, including, in the case of local governmental obligations issued in accordance with § 46-12.2-12, proceedings for the appointment of a receiver to take possession and control of the approved project financed thereby, the wastewater system of which it is a part, or any other revenue producing facilities from which the local governmental unit may derive wastewater system revenues or other general revenues, to operate and maintain the system or facility in compliance with law, to make any necessary repairs, renewals, and replacements and to fix, revise, and collect wastewater system revenues, protect, and enforce any and all rights under the laws of the state or granted in this chapter or under any trust agreement, and may enforce and compel the performance of all duties required by this chapter, the loan agreement, the applicable bond act, or the trust agreement to be performed by the local governmental unit or any officer thereof.

(f)  A pledge of general revenues or wastewater system revenues in accordance with this chapter shall constitute a sufficient appropriation thereof for the purposes of any provision for appropriation for so long as the pledge shall be in effect, and, notwithstanding any general or special law or municipal charter to the contrary, the revenues shall be applied as required by the pledge and the trust agreement evidencing the revenues without further appropriation.

(g)  A pledge or assignment of general revenues, other than wastewater system revenues, may be made only to secure general obligations of a local governmental unit.

History of Section.
P.L. 1989, ch. 303, § 2; P.L. 2015, ch. 141, art. 14, § 17.