Rhode Island § 45-12-33 - Indebtedness of Towns and Cities

§ 45-12-33. Borrowing for road and bridge, infrastructure, and school building projects.

(a)(1) In addition to other authority previously granted, during calendar year 2014 a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence loans from the municipal road and bridge revolving fund administered by the Rhode Island infrastructure bank in accordance with chapter 18 of title 24. Beginning July 1, 2025, and thereafter, a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence loans from the municipal road and bridge revolving fund administered by the Rhode Island infrastructure bank in accordance with chapter 18 of title 24 to provide a match to other state funding for an approved project from the municipal road and bridge revolving fund.

(2) In addition to other authority previously granted, from July 1, 2015 to June 30, 2016, a city or town may authorize the issuance of bonds, notes, or other evidences of indebtedness to evidence loans from the efficient buildings fund administered by the Rhode Island infrastructure bank in accordance with chapter 12.2 of title 46 or the school building authority capital fund administered by the Rhode Island health and educational building corporation in accordance with chapter 38.2 of this title.

(b) These bonds, notes, or other evidences of indebtedness are subject to the maximum aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.

(c) The denominations, maturities, interest rates, methods of sale, and other terms, conditions, and details of any bonds or notes issued under the provisions of this section may be fixed by resolution of the city or town council authorizing them, or if no provision is made in the resolution, by the treasurer or other officer authorized to issue the bonds, notes, or evidences of indebtedness; provided, that the payment of principal shall be by sufficient annual payments that will extinguish the debt at maturity, the first of these annual payments to be made not later than three (3) years, and the last payment not later than twenty (20) years after the date of the bonds.

The bonds, notes, or other evidences of indebtedness may be issued under this section by any political subdivision without obtaining the approval of its electors, notwithstanding the provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the contrary.