§ 45-33.2-8 - Pledge of project revenues validated. - Rhode Island Statutes

SECTION 45-33.2-8

   § 45-33.2-8  Pledge of project revenuesvalidated. – (a) Notwithstanding any provision of any other law, including the UniformCommercial Code, §§ 6A-1-101 – 6A-9-507:

   (1) Any pledge under this chapter is valid and binding, anddeemed continuously perfected from the time it is made;

   (2) No filing need be made under the Uniform Commercial Codeor otherwise;

   (3) Unless otherwise provided in the financing instruments, apledge of project revenues is deemed to include a pledge of any accounts orgeneral intangibles from which revenues are derived, whether existing at thetime of the pledge or thereafter coming into existence, and whether held at thetime of the pledge or thereafter acquired by the city or town, and the proceedsof the accounts or general intangibles; and

   (4) The pledge of project revenues, accounts, and generalintangibles is subject to the lien of the pledge without delivery orsegregation, and the lien of the pledge is valid and binding against allparties having claims of contract or tort or otherwise against the city or town.

   (b) A pledge of project revenues under this chapterconstitutes a sufficient appropriation for the purposes of any provision forappropriation, and the revenues may be applied as required by the pledgewithout further appropriation.

   (c) For the purposes of this section the word "pledge" isconstrued to include the grant of a security interest under the UniformCommercial Code.