§ 39-18-15 - Refunding bonds. - Rhode Island Statutes

SECTION 39-18-15

   § 39-18-15  Refunding bonds. – (a) The authority is hereby authorized to provide for the issuance of bonds ofthe authority for the purpose of refunding any bonds of the authority,including temporary notes, then outstanding, including the payment of anyredemption premium thereon and any interest accrued or to accrue to the date ofredemption of the bonds.

   (b) The proceeds of any bonds issued for the purpose ofrefunding outstanding bonds may, in the discretion of the authority, be appliedto the purchase or retirement at maturity or redemption of the outstandingbonds either on their earliest or any subsequent redemption date or upon thepurchase or at the maturity thereof, and may, pending application, be placed inescrow to be applied to the purchase or retirement at maturity or redemption onsuch date as may be determined by the authority.

   (c) Any escrowed proceeds, pending such use, may be investedand reinvested in direct obligations of the United States of America, or incertificates of deposit or time deposits secured by direct obligations of theUnited States of America, maturing at such time or times as shall beappropriate to assure the prompt payment, as to principal, interest, andredemption premium, if any, of the outstanding bonds to be so refunded. Theinterest, income and profits, if any, earned or realized on any investment mayalso be applied to payment of the outstanding bonds to be so refunded. Afterthe terms of the escrow have been fully satisfied and carried out, any balanceof the proceeds and interest, income and profits, if any, earned or realized onthe investments thereof may be returned to the authority for use by it in anylawful manner.

   (d) All bonds shall be issued and secured and shall besubject to the provisions of this chapter in the same manner and to the sameextent as other bonds issued pursuant to this chapter.