§ 42-116-14 - Refunding bonds. - Rhode Island Statutes

SECTION 42-116-14

   § 42-116-14  Refunding bonds. – The corporation may issue refunding bonds for the purpose of paying any of itsbonds issued pursuant to this chapter at or prior to maturity or uponacceleration or redemption or purchase and retirement. Refunding bonds may beissued at any times at or prior to the maturity, redemption, or purchase andretirement of the refunded bonds as the board of directors deems to be in theinterest of the corporation. Refunding bonds may be issued in sufficientamounts to pay or provide for payment of the principal of the bonds beingrefunded, together with any redemption premium on these bonds, any interest ordiscount accrued or to accrue to the date of payment of these bonds, the costsof issuance of the refunding bonds, the expenses of paying, redeeming, orpurchasing the bonds being refunded, the costs of holding and investingproceeds of refunding bonds pending the payment, redemption or purchase and thereserves for debt service or other expenses from the proceeds of theserefunding bonds as may be required by a trust agreement securing the bonds.Pending application, the proceeds of the refunding bonds may be placed inescrow. The issue and sale of refunding bonds, the maturities and other detailsof the bonds, the security for the bonds, the rights of their holders, and therights, duties, and obligations of the corporation in respect of the refundingbonds are governed by the provisions of this chapter relating to the issue ofbonds other than refunding bonds insofar as that may be applicable.