State Codes and Statutes
Statutes > Rhode-island > Title-45 > Chapter-45-38-1 > 45-38-1-19SECTION 45-38.1-19
§ 45-38.1-19 State not liable. – (a) Except with regard to state reimbursement related to school housing projectfinancing, the state is not liable for the payment of the principal of orinterest on any bonds or notes of the corporation, or for the performance ofany pledge, mortgage, obligation, or agreement of any kind whatsoever which maybe undertaken by the corporation, and none of the bonds or notes of thecorporation nor any of its agreements or obligations, except for statereimbursement related to school housing project financing, are construed toconstitute an indebtedness of the state within the meaning of anyconstitutional or statutory provision whatsoever, nor shall the issuance ofbonds or notes, under the provisions of this chapter, directly or indirectly orcontingently obligate the state or any municipality or political subdivision ofthe state to levy or to pledge any form of taxation for them or to make anyappropriation for their payment, except for state reimbursement for schoolhousing projects. All of the revenue bonds or notes shall contain on the face astatement to the effect that neither the state nor the corporation areobligated to pay the revenue bonds or notes, or their interest except fromrevenues of the project or projects for which they are issued, and that neitherthe faith and credit nor the taxing power of the state or of any municipalityor political subdivision of the state is pledged to the payment of theprincipal of or the interest on those bonds or notes; provided, however, thatin connection with any state housing project financing, the statement on theface of the bonds shall also include an exception for state reimbursement.
(b) Nothing contained in this section shall prevent nor beconstrued to prevent the corporation from pledging its full faith and credit orthe full faith and credit of a participating institution for higher educationor health care provider to the payment of bonds or notes, or issue of bonds ornotes authorized pursuant to this chapter.
