§ 45-12-32. Inability to pay interest or principal of bonds, notes or certificates of indebtedness — Notice — Certification to general treasurer — Payment by general treasurer.
(a) If it appears to the treasurer or finance director of a city, town or district, including a regional school district, that the city, town or district is, or is likely to be, unable to pay in whole or in part the principal or interest, or both, on any of its bonds, notes or certificates of indebtedness when due, the treasurer or finance director shall forthwith notify the city manager, town manager, town administrator or mayor, the city council or town council, the regional district school committee in a regional school district, or the board of any other type of district, of the inability or likely inability. If the city manager, town manager, town administrator, mayor, town council or city council, committee or board, whether or not so notified, finds upon investigation that the payment cannot or is not likely to be made when due, he, she or they shall certify the inability or likely inability to the director of revenue. Upon receipt of the certificate, the director of revenue shall immediately investigate the circumstances and, if the director finds that the city, town or district is, or in the director’s opinion will be, unable to make the payment when due, the director shall forthwith certify the inability, the amount of the due or overdue payment and the name of the paying agent for the bonds, notes or certificates of indebtedness to the general treasurer.
(b) Notwithstanding any provision of general or special law or any rules or regulations with respect to the timing of payment of state aid payments, not later than three (3) days after receipt of the certification from the director of revenue or one business day prior to the date on which the principal or interest, or both, becomes due, whichever is later, the general treasurer shall pay to the paying agent the amount of the due or overdue payment certified to him/her to the extent of the sums otherwise then payable and the sums estimated to become payable during the remainder of the fiscal year, from the treasury, to the city, town or district.
(c) The amounts so paid to the paying agent shall be in trust and shall be exempt from being levied upon, taken, sequestered or applied for any purpose other than paying principal or interest, or both, on bonds, notes or certificates of indebtedness of the city, town or district.
(d) Any amounts paid by the general treasurer under the provisions of this section, together with all costs accruing to the state as a result of actions undertaken pursuant to this section, including administrative costs as well as loss of interest income, shall be charged against the amounts otherwise payable or becoming payable from the treasury to the city, town or district.
(e) For purposes of this section, the sums otherwise payable from the treasury to a city or town shall be the funds made available to cities and towns:
(1) As state aid pursuant to chapter 13 of this title, but specifically excluding reimbursements to cities and towns for the cost of state mandates pursuant to § 45-13-9;
(2) As school housing aid pursuant to §§ 16-7-35 — 16-7-47, but subject to any pledge to bonds issued to finance school projects by the Rhode Island health and educational building corporation, and specifically excluding school operations aid provided for in §§ 16-7-15 — 16-7-34.3;
(3) In replacement of motor vehicle and trailer excise taxes pursuant to chapter 34.1 of title 44;
(4) From the public service corporation tax pursuant to chapter 13 of title 44; and
(5) From the local meal and beverage tax pursuant to § 44-18-18.1 and the hotel tax pursuant to § 44-18-36.1; and
(6) Pursuant to all acts supplementing such chapters listed in subdivisions (1) — (5) above or pursuant to any other law hereafter enacted providing for funds to municipalities in lieu of or in substitution for the funds provided pursuant to acts supplementing such chapters listed in (1) — (5).
History of Section.P.L. 2010, ch. 24, § 3; P.L. 2010, ch. 27, § 3.
Structure Rhode Island General Laws
Chapter 45-12 - Indebtedness of Towns and Cities
Section 45-12-1. - Payment of indebtedness.
Section 45-12-2. - Maximum aggregate indebtedness.
Section 45-12-2.1. - Ministerial approval.
Section 45-12-3. - Statements to accompany bills to general assembly to authorize indebtedness.
Section 45-12-4. - Borrowing in anticipation of taxes.
Section 45-12-4.1. - Borrowing where collection of taxes delayed or taxes refunded.
Section 45-12-4.2. - Borrowing in anticipation of federal or state grants.
Section 45-12-4.3. - Borrowing in anticipation of water and sewer tax and user charge revenue.
Section 45-12-4.4. - Borrowing in payment of certain judgments.
Section 45-12-4.5. - Relationship to charters.
Section 45-12-5. - Sale of evidences of indebtedness — Annual payments — Terms.
Section 45-12-5.1. - Callable bonds.
Section 45-12-5.2. - Issuance of refunding bonds to pay outstanding bonds.
Section 45-12-5.5. - Repealed.
Section 45-12-6. - Statutory bond authorizations construed as additional authority.
Section 45-12-7. - Sinking fund provisions construed as additions to general sinking fund.
Section 45-12-8. - Establishment of general sinking fund — Computation of payments to sinking fund.
Section 45-12-9. - Retirement of bonds in sinking fund.
Section 45-12-11. - Authority for issuance of indebtedness excess.
Section 45-12-12. - City and town boards to authorize duplicate bonds.
Section 45-12-13. - Repair or replacement of damaged bond or note.
Section 45-12-14. - Replacement of lost or destroyed bond or note — Bond to indemnify city or town.
Section 45-12-15. - Contractual debts unimpaired.
Section 45-12-16. - Interest rate.
Section 45-12-17. - Debt previously approved.
Section 45-12-18. - Bond anticipation notes.
Section 45-12-19. - Charter provisions as to referendum.
Section 45-12-20. - Issuance of bonds authorized by law approved by electors.
Section 45-12-21. - Powers of financial town meeting not affected.
Section 45-12-22.1. - Municipal deficits — Purpose.
Section 45-12-22.2. - Monitoring of financial operations — Corrective action.
Section 45-12-22.3. - Year-end deficits.
Section 45-12-22.5. - Unbudgeted expenditures.
Section 45-12-22.6. - Cooperation of school committees.
Section 45-12-22.7. - Enforcement and remedies.
Section 45-12-23. - Tax exemption.
Section 45-12-25. - Sale of bonds or notes at a discount.
Section 45-12-26. - Commercial agreements relating to registered bonds and notes.
Section 45-12-27. - Conflict between bond referendum provisions and bond expenditure provisions.
Section 45-12-28. - Permitted temporary investments for bond proceeds.
Section 45-12-30. - Securing of bonds or notes — Trust agreements.
Section 45-12-31. - Extinguishment of authorizations.
Section 45-12-33. - Borrowing for road and bridge, infrastructure, and school building projects.