§ 45-12-4. Borrowing in anticipation of taxes.
Any city or town by resolution of its city or town council may borrow money in each financial year in anticipation of the receipt of the proceeds of the annual tax due or to become due in that financial year upon the taxable property within the city or town, an amount which, together with any money borrowed in anticipation of taxes in any prior year which may remain unpaid, shall not exceed in the aggregate the total tax levy of the then current financial year, or which if no tax levy was made, shall not exceed the tax levy of the next preceding financial year, the money borrowed to be used and expended for the payment of the current liabilities and expenses of the city or town, and may issue its negotiable notes therefor. Notes issued under authority of this section shall bear upon their face the notation “issued in anticipation of taxes assessed as of December 31, ” and shall be made payable not later than one year from their date, but may be refunded or paid by the issue of new notes bearing the notation and payable not later than one year from the date of the original notes so refunded or paid. The failure of a city or town to comply with any time requirement or deadline imposed by general law, special law or charter in relation to the levy or assessment of taxes shall not affect the validity of notes issued pursuant to this section. Every city and town borrowing money under the provisions of this section shall assess and levy a tax in each financial year sufficient to provide funds for the payment of all outstanding notes previously issued in anticipation of taxes of the preceding financial year.
History of Section.G.L. 1923, ch. 47, § 29; P.L. 1930, ch. 1617, § 3; P.L. 1932, ch. 1861, § 1; P.L. 1932, ch. 1944, § 3; G.L. 1938, ch. 329, § 26; P.L. 1951, ch. 2771, § 1; G.L. 1956, § 45-12-4; P.L. 2007, ch. 252, § 1; P.L. 2007, ch. 292, § 1.
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.