§ 35-8-25 - Extinguishment of authorized but unissued debt. - Rhode Island Statutes

SECTION 35-8-25

   § 35-8-25  Extinguishment of authorized butunissued debt. – (a) Any special act of the state which:

   (1) Authorizes the issuance of general obligation bonds ornotes of the state;

   (2) Has a balance which remains unissued; and

   (3) Is seven (7) years or older;

   shall become invalid, but only as to that portion whichremains unissued. The seven (7) year period shall be measured form the date thedebt authorization was approved by the vote of the people.

   (b) Notwithstanding subsection (a) of this section, thegeneral assembly by special act may extend any authorization for a period ofone to five (5) years, upon a petition of the department of administration. Theextension may be granted one or more times.

   (c) Upon certification by the general treasurer to thegovernor, debt authorizations described in subsection (a) of this section andnot extended under the provisions of subsection (b) of this section shall nolonger be deemed or be counted toward the authorized but unissued debt of thestate. No petition under subsection (b) of this section may be made withrespect to any authorization the expiration of which has been so certified.

   (d) Upon the disbursement of sinking funds to replace theunissued general obligation debt authorization, the replaced unissued generalobligation debt authorization shall be extinguished in the amount equal to thedisbursement from the sinking fund.