§ 35-8.1-12 - Receipt, investment, and application by state of loan. - Rhode Island Statutes

SECTION 35-8.1-12

   § 35-8.1-12  Receipt, investment, andapplication by state of loan. – (a) Other than as provided in subsection (b), the proceeds of a loan to thestate shall, upon their receipt, be paid by the general treasurer immediatelyto the paying agent or other suitable trustee for the 1984 and 1985 bonds andthe paying agent or trustee shall hold the proceeds in trust until they areapplied to pay the 1984 and 1985 bonds. Neither the governor nor the generaltreasurer or any other official of the state or trustee for the 1984 and 1985bonds shall make or permit to be made any expenditures for new capitalimprovements from the proceeds of the loan. While the proceeds are held intrust, they may be invested in obligations of the United States or the state orany other state.

   (b) The proceeds generated for refinancing the pensionobligation shall be paid to the general treasurer on behalf of the state, whoshall then immediately remit the proceeds to the state retirement system.Neither the governor nor the general treasurer or any other official of thestate shall make any expenditures for new capital improvements from theproceeds. While the proceeds are held by the state retirement system they shallbe invested pursuant to the investment statutes and policies of the stateinvestment commission.

   (c) The board, with the approval of the governor, shall havethe authority to appoint a paying agent or other suitable trustee for the1984-1985 bonds and the governor is authorized to execute any documents oragreements on behalf of the state necessary to carry out the purposes of thissection.

   (d) Any proceeds issued pursuant to § 35-8.1-13(d), canbe used in accordance within the terms of any trust or agreement entered intoby the authority in connection with such bonds.