Rhode Island § 45-12-4 - Indebtedness of Towns and Cities

§ 45-12-4. Borrowing in anticipation of taxes.

Any city or town by resolution of its city or town council may borrow money in each financial year in anticipation of the receipt of the proceeds of the annual tax due or to become due in that financial year upon the taxable property within the city or town, an amount which, together with any money borrowed in anticipation of taxes in any prior year which may remain unpaid, shall not exceed in the aggregate the total tax levy of the then current financial year, or which if no tax levy was made, shall not exceed the tax levy of the next preceding financial year, the money borrowed to be used and expended for the payment of the current liabilities and expenses of the city or town, and may issue its negotiable notes therefor. Notes issued under authority of this section shall bear upon their face the notation “issued in anticipation of taxes assessed as of December 31, ” and shall be made payable not later than one year from their date, but may be refunded or paid by the issue of new notes bearing the notation and payable not later than one year from the date of the original notes so refunded or paid. The failure of a city or town to comply with any time requirement or deadline imposed by general law, special law or charter in relation to the levy or assessment of taxes shall not affect the validity of notes issued pursuant to this section. Every city and town borrowing money under the provisions of this section shall assess and levy a tax in each financial year sufficient to provide funds for the payment of all outstanding notes previously issued in anticipation of taxes of the preceding financial year.