§ 39-16-11. Terms and sale of bonds - Refunding. (a) The authority is hereby authorized to provide by resolution for the issuance, at one time or from time to time, of revenue bonds of the authority for the purpose of paying all or part of the cost to acquire, construct, reconstruct, rehabilitate, improve, or maintain any property necessary or desirable for the purposes of the authority. The bonds shall be authorized by resolution of the board, and shall bear such date or dates, mature at such time or times not exceeding forty (40) years from their date, bear interest at such rate or rates payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges and such privileges of reconversion from registered to coupon form, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to redemption at such premium, if required, and on such terms, as the resolution may provide. Notwithstanding the requirement of § 39-16-8 that any indebtedness incurred by the authority shall be payable solely from the earnings or revenues derived from all or part of the property acquired by the authority, the authority may purchase or otherwise acquire or require bond insurance, letters of credit, lines of credit or such other instruments or securities to insure the timely payment of principal, interest, and/or redemption premium on the bonds.

(b) Pending the preparation of the bonds in definitive form, the board shall have the power to issue temporary bonds or interim receipts in such form as the board may elect. The definitive bonds shall be signed by the chairperson of the authority or a facsimile thereof shall be impressed or imprinted thereon and attested by the manual or facsimile signature of the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until delivery.

(c) Any bonds, authorized by and issued pursuant to this chapter, may be sold at public or private sale for such price or prices as the authority shall determine.

(d) The authority is hereby authorized to provide for the issuance of refunding bonds of the authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon or interest accrued or to accrue to the earliest or subsequent date of redemption purchase or maturity of the bonds and, if deemed advisable by the authority, for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any property of the authority. The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the authority, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may, pending that application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the United States, or in certificates of deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the United States, or an instrumentality of either, maturing at such time or times as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the authority for use by it in furtherance of its purposes. The portion of the proceeds of bonds or notes issued for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, developing, or improving any property of the authority may be invested and reinvested in such obligations, securities, and other investments consistent with this section as shall be specified in the resolutions under which the bonds are authorized and which shall mature not later than the times when the proceeds will be needed for these purposes. The interest, income, and profits, if any, earned or realized on the investments may be applied to the payment of all parts of the costs, or may be used by the authority otherwise in furtherance of its purposes. The issuance of the bonds, the maturities, and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect to the bonds shall be governed by the provisions of this chapter insofar as the provisions may be applicable.

History of Section. (P.L. 1946, ch. 1740, § 4; G.L. 1956, § 39-16-11; P.L. 1981, ch. 410, § 1; P.L. 1990, ch. 16, § 1; P.L. 1997, ch. 326, § 118.)