§ 45-33.2-7. Security for bonds — Trust agreements.
(a) In the discretion of the officers authorized to sell the bonds, but subject to the provisions of the vote authorizing the bonds, bonds issued under this chapter may be secured by one or more trust agreements between the city or town and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. A trust agreement under this section shall be in a form and executed in a manner that may be determined by the officers. A trust agreement may pledge or assign project revenues, in whole or in part. It may contain provisions for protecting and enforcing the rights, security, and remedies of the bondholders as may be reasonable and proper and not in violation of law, including without limiting the generality of the preceding, provisions defining defaults and providing for remedies in the event of defaults, which may include the acceleration of maturities, and covenants stating duties of, and limitations on, the city or town in relation to carrying out and otherwise administering the project or projects, the custody, safeguarding, investment and application of project revenues, the issue of additional bonds under this chapter, the determination of tax increments, the fixing of fees and charges, if any, in relation to the project or projects, the collection of project revenues, the use of any surplus bond proceeds, the establishment of reserves, and the replacement of bonds or coupons which become mutilated or are destroyed or lost. Subject to the provisions of this chapter, moneys subject to the trust agreement shall be held, invested, and applied as provided in the trust agreement; provided, that moneys not deposited in trust with a corporate trustee shall be in the custody of the city or town treasurer.
(b) It is lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds or of other moneys under any trust agreement and to furnish indemnifying bonds or to pledge securities that may be required by the trust agreement. The trust agreement or resolution may establish the rights and remedies of the bondholders and the trustee, and may restrict the individual right of action by bondholders. All expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated as current operating expenses.
History of Section.P.L. 1984, ch. 78, § 1.
Structure Rhode Island General Laws
Chapter 45-33.2 - Municipal Tax Increment Financing Act
Section 45-33.2-1. - Short title.
Section 45-33.2-2. - Legislative findings.
Section 45-33.2-3. - Definitions.
Section 45-33.2-3.1. - Additional definitions.
Section 45-33.2-4. - Adoption of project plan.
Section 45-33.2-5. - Authorization to undertake projects — Powers.
Section 45-33.2-6. - Issuance of special obligation bonds.
Section 45-33.2-7. - Security for bonds — Trust agreements.
Section 45-33.2-8. - Pledge of project revenues validated.
Section 45-33.2-9. - Temporary anticipation notes.
Section 45-33.2-10. - Refunding bonds.
Section 45-33.2-11. - Credit of municipality not pledged.
Section 45-33.2-12. - Investment of funds.
Section 45-33.2-13. - Trust funds.
Section 45-33.2-14. - Remedies of bondholders and noteholders.
Section 45-33.2-15. - Bonds and notes as legal instruments.
Section 45-33.2-16. - Bonds and notes as investment securities.
Section 45-33.2-17. - Exemption from taxation.
Section 45-33.2-18. - Annual report.
Section 45-33.2-19. - Provisions supplementary.
Section 45-33.2-20. - Severability.
Section 45-33.2-21. - Tax limitations.
Section 45-33.2-22. - Alternate tax increment provisions.
Section 45-33.2-24. - Reserved.
Section 45-33.2-25. - Planning commission advisory opinion — Conditions for tax increment district.
Section 45-33.2-26. - Adoption of tax increment district master plan.
Section 45-33.2-27. - Designation of tax increment revenues.