State Codes and Statutes
Statutes > Rhode-island > Title-45 > Chapter-45-48 > 45-48-12SECTION 45-48-12
§ 45-48-12 Redemption of bonds. – The district may at any time deposit with the trustee, under its then existingbond resolution a sum sufficient, with amounts then on deposit, including thedebt service reserve fund, to purchase direct obligations of the United Statesof America which are adequate to pay the entire principal amount of the bondssecured by the resolution, together with the interest to maturity, or to anapplicable redemption date specified by the district to the trustee and anyapplicable redemption premium; or the district may deposit direct obligationsof the United States of America in lieu of money for their purchase. Theobligations are deemed adequate if the principal and interest payable on themare sufficient to pay the previously mentioned sums when due. Upon any depositof money and a request by the district, the trustee shall purchase directobligations of the United States of America. When adequate direct obligationsof the United States of America are held by the trustee pursuant to thissection, the bond resolution shall cease to be in effect. The obligations andtheir proceeds shall be held in trust for the benefit of the bondholders, andthe trustee shall, on behalf of the district, call bonds for redemption on theapplicable redemption date specified pursuant to this section. Any compensationor expenses of the trustee in carrying out this section shall be paid by thedistrict, and any surplus funds held by the trustee under this section shall beremitted by the trustee to the district.
