§ 42-34-15. Additions to mortgage insurance fund. (a) If from time to time in the opinion of the authority the addition of moneys to the mortgage insurance fund is required to meet obligations, the authority shall in writing request the governor to provide sufficient moneys by a day specified for that purpose. The governor shall request the general assembly, if in session, to appropriate moneys, in the treasury, not otherwise appropriated, for that purpose. If the general assembly is not in session or will not be in session within sixty (60) days of the date specified in the request of the authority, or, if the general assembly has not provided the moneys requested within thirty (30) days of that date, the governor shall direct the general treasurer to issue bonds in an amount at least equal to the amount requested by the authority and as shall be necessary to carry out the purposes of this chapter in serial form in the name and behalf of the state to be signed by the general treasurer and countersigned by the secretary of state under the seal of the state to be designated "the Rhode Island industrial-recreational building authority loan". The bonds shall be of the denomination of one thousand dollars ($1,000) or any multiple thereof, shall be in coupon or registered form, shall bear interest at such rate or rates of interest as may be fixed in accordance with the provisions of this section, payable semi-annually, and the principal thereof and interest thereon shall be payable in any coin or currency of the United States which at the time of payment shall be legal tender for public and private debts. The date of maturity of the bonds shall be fixed by the general treasurer, but shall not in any case be later than twenty-five (25) years from the date of issue.

(b) The bonds so issued shall be deemed a pledge of the faith and credit of the state and shall be exempt from taxation in this state. Whenever the governor shall approve the issuance of the bonds, he or she shall certify the approval to the secretary of state and that approval shall also be endorsed on each bond so approved with a facsimile of the signature of the governor.

(c) The bonds shall be sold from time to time at not less than par, at public auction, or in such other mode and at such times, in such amounts and at such rate or rates of interest as the general treasurer, with the advice of the governor, shall deem for the best interests of the state; provided, however, that the general treasurer, with the approval of the governor, may from time to time sell any of the bonds to the sinking fund commission as provided by law instead of selling them at public auction or in some other mode as above provided; provided, further, however, that in the solicitation of bids, the general treasurer shall require all bidders to state the lowest interest rate, expressed in multiples of one tenth of one percent (.1%), at which the bidders will purchase the bonds for not less than par.

History of Section. (P.L. 1958, ch. 91, § 16; P.L. 1987, ch. 537, § 3.)