State Codes and Statutes
Statutes > Rhode-island > Title-42 > Chapter-42-55 > 42-55-16SECTION 42-55-16
§ 42-55-16 Sale of refunding obligations.– Refunding obligations issued as provided in § 42-55-15 may be sold orexchanged for outstanding obligations issued under this chapter and, if sold,the proceeds may be applied, in addition to any other authorized purposes, tothe purchase, redemption, or payment of outstanding obligations. Pending theapplication of the proceeds of any refunding obligations, with any otheravailable funds, to the payment of the principal, accrued interest, and anyredemption premium on the obligations being refunded, and, if provided orpermitted in the resolution authorizing the issuance of refunding obligationsor in the trust agreement securing the refunding obligations, to the payment ofany interest on the refunding obligations and any expenses in connection withthe refunding, the proceeds may be invested in direct obligations of, orobligations the principal of and the interest on which are unconditionallyguaranteed by the United States which shall mature or which shall be subject toredemption by their holders, at the option of those holders, not later than thedates when the proceeds, together with the interest accruing on the proceeds,will be required for the purposes intended.
