§ 45-12-1 - Payment of indebtedness. - Rhode Island Statutes

SECTION 45-12-1

   § 45-12-1  Payment of indebtedness. –The outstanding notes, bonds, and contracts of cities and towns shall be paidand fulfilled according to their tenor, and all public works now authorized tobe prosecuted shall be prosecuted, and all indebtedness now authorized to beincurred on account thereof may be incurred, according to the tenor of theauthority therefor. The power and obligation of each city and town to pay itsgeneral obligation bonds and notes, whether or not issued pursuant to thischapter, shall be unlimited, and each city and town shall levy ad valorem taxesupon all the taxable property within the city or town for the payment of thegeneral obligation bonds or notes and interest on these bonds or notes, withoutlimitation of rate or amount, except as otherwise provided by or pursuant tolaw. The faith and credit of each city and town shall be pledged for thepayment of the principal of, premium and the interest on, all generalobligation bonds and notes of the city or town whether or not the pledge isstated in the bonds or notes, or in the proceedings authorizing their issue.Each city and town shall annually appropriate a sum sufficient to pay theprincipal, premium and interest coming due within the year on all its generalobligation bonds and notes to the extent that moneys for the general obligationbonds and notes are not otherwise provided. If that sum is not appropriated, itshall nevertheless be added to the annual tax levy.