§ 45-58-11 Bonds. – (a) The utility district shall have the power and is hereby authorized fromtime to time to issue its negotiable bonds for any of its corporate or districtpurposes and to secure the payment of the bonds in such manner and by suchmeans as may be provided in the resolution or resolutions of the utilitydistrict authorizing the bonds, subject to the regulatory jurisdiction of thedivision of public utilities and carriers in the manner prescribed in §39-3-15, where applicable.
(b) The utility district is specifically authorized to securebonds that it may issue from time to time by a pledge of, or creation of othersecurity interest in, the revenues of the utility district, which pledge orsecurity interest may be enforceable by the grant of a conditional franchise,in the event of default in the payment of the bonds, entitling the securedparty or trustee to enter upon and take control of the utility district'sfacilities and service and to provide utility service and receive the revenuesfrom the utility district's facilities and service for such period, notexceeding twenty (20) years, as may be necessary to recover all payments due onthe bonds.
(c) The bonds of the utility district shall be authorized byresolution of the board of utility commissioners. The bonds shall bear suchdate or dates, mature at such time or times not exceeding forty (40) years fromtheir issuance, bear interest at such rate or rates payable at such time ortimes, be in such denominations and in such form, carry such registrationprivileges, be executed in such manner, be payable in such medium of payment,at such place or places and such time or times and be subject to redemption atsuch premium, if required, and on such terms, as the resolution may provide.The bonds so authorized and issued pursuant to this chapter may be sold atpublic or private sale for any price or prices that the utility district shalldetermine.
(d) Pending the issuance of bonds in definitive form, theutility district may issue bond anticipation notes or interim receipts in suchform as the board of utility commissioners may elect.
(e) The utility district is hereby authorized to provide forthe issuance of refunding bonds of the utility district for the purpose ofrefunding any bonds then outstanding which shall have been issued under theprovisions of this chapter, including the payment of any redemption premium onthe bonds or interest accrued or to accrue to the earliest or subsequent dateof redemption, purchase or maturity of the bonds and, if deemed advisable bythe utility district, for the additional purpose of paying all or a part of thecost of acquiring, constructing, reconstructing, rehabilitating, or improvingany property, facilities or systems or parts of property facilities or systemsof the utility district. The proceeds of bond or notes issued for the purposeof refunding outstanding bonds or notes may be applied, in the discretion ofthe utility district, to the purchase, retirement at maturity or redemption ofoutstanding bonds or notes either on their earliest or a subsequent redemptiondate and may, pending that application, be placed in escrow in the same mannerand through the same means as are generally available to and incumbent uponpolitical subdivisions of the state.
(f) It is hereby declared that the utility district and thecarrying out of its corporate, district and political subdivision purposes isin all respects for the benefit of the people of the state and for theimprovement of their health, welfare and prosperity, and the utility districtwill be performing an essential governmental function in the exercise of thepowers conferred by this chapter. The state therefore covenants with theholders of the utility district's bonds that the utility district shall not berequired to pay taxes or payments in lieu of taxes to the state or any otherpolitical subdivision of the state upon any property of the utility district orunder its jurisdiction, control or supervision, or upon any of the utilitydistrict's activities in the operation or maintenance of the property or uponany earnings, revenues, moneys or other income derived by the utility district,and that the bonds of the utility district and the income from the bonds shallat all times be exempt from taxation by the state and its politicalsubdivisions. Notwithstanding the foregoing, nothing in this section shall bedeemed to prohibit the division of public utilities and carriers, the publicutilities commission and the department of attorney general from assessing theutility in accordance with the provisions of §§ 39-1-23, 39-1-26,39-19-9 and 39-19-14.
(g) The state does hereby pledge to and agree with theholders of the bonds, notes or other indebtedness of the utility district thatthe state will not limit or alter the rights vested in the utility districtuntil the bonds, notes or other evidence of indebtedness, together with theinterest on the debt, are fully met and discharged.
(h) Any resolution or resolutions authorizing any bond, orany issue of bonds, may contain provisions which shall be a part of thecontract with the bondholders of the bonds thereby authorized, as to:
(1) Pledging all or any part of the money, earnings, income,and revenues derived from all or any part of the property of the utilitydistrict to secure the payment of any bonds or of any issue of bonds subject tosuch agreements with bondholders as may then exist;
(2) The rates to be fixed and the charges to be collected andthe amounts to be raised in each year and the use and disposition of theearnings and other revenue;
(3) The setting aside of reserves and the creation of sinkingfunds and the regulation and disposition thereof;
(4) Limitations on the right of the utility district torestrict and regulate the use of the properties in connection with which thebonds are issued;
(5) Limitations on the purposes to which the proceeds of saleof any issue of bonds may be put;
(6) Limitations on the issuance of additional bonds,including refunding bonds and the terms upon which additional bonds may beissued and secured;
(7) The procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the percentage of bondholderswhose consent shall be required for such amendment or abrogation, and themanner in which consent may be given;
(8) The creation of special funds into which any earnings orrevenues of the utility district may be deposited, and the investment of thefunds;
(9) The appointment of a fiscal agent and the determinationof its powers and duties;
(10) Limitations on the power of the utility district to sellor otherwise dispose of its properties;
(11) The preparation of annual budgets by the authority andthe employment of consultants and auditors;
(12) The rights and remedies of bondholders in the event offailure on the part of the utility district to perform any covenant oragreement relating to a bond indenture;
(13) Covenanting that as long as any bonds are outstandingthe utility district shall use its best efforts to establish and maintain itsrates and charges at levels adequate at all times to pay and provide for alloperating expenses of the utility district, all payments of principal,redemption premium (if any), and interest on bonds, notes or other evidences ofindebtedness incurred or assumed by the utility district, all renewals, repairsand replacements to the property and facilities of the utility district, andall other amounts which the utility district may be required by law to pay; and
(14) Any other matters of like or different character whichin any way affect the security or protection of the bonds.
(i) The bonds of the utility district are hereby madesecurities in which all public officers and bodies of this state and allmunicipalities and municipal subdivisions, all insurance companies andassociations and other persons carrying on an insurance business, all banks,bankers, trust companies, savings banks, and savings associations (includingsavings and loan associations), building and loan associations, investmentcompanies and other persons carrying on a banking business, all administrators,guardians, executors, trustees and other fiduciaries and all other personswhomsoever, who are now or may thereafter be authorized to invest in bonds orother obligation of the state may properly and legally invest funds includingcapital in their control or belonging to them. The bonds are also hereby madesecurities which may be deposited with and shall be received by all publicofficers and bodies of this state, and all municipalities and municipalsubdivisions, for any purpose for which the deposit of bonds or otherobligations of this state is now or may thereafter be required.
§ 45-58-11 Bonds. – (a) The utility district shall have the power and is hereby authorized fromtime to time to issue its negotiable bonds for any of its corporate or districtpurposes and to secure the payment of the bonds in such manner and by suchmeans as may be provided in the resolution or resolutions of the utilitydistrict authorizing the bonds, subject to the regulatory jurisdiction of thedivision of public utilities and carriers in the manner prescribed in §39-3-15, where applicable.
(b) The utility district is specifically authorized to securebonds that it may issue from time to time by a pledge of, or creation of othersecurity interest in, the revenues of the utility district, which pledge orsecurity interest may be enforceable by the grant of a conditional franchise,in the event of default in the payment of the bonds, entitling the securedparty or trustee to enter upon and take control of the utility district'sfacilities and service and to provide utility service and receive the revenuesfrom the utility district's facilities and service for such period, notexceeding twenty (20) years, as may be necessary to recover all payments due onthe bonds.
(c) The bonds of the utility district shall be authorized byresolution of the board of utility commissioners. The bonds shall bear suchdate or dates, mature at such time or times not exceeding forty (40) years fromtheir issuance, bear interest at such rate or rates payable at such time ortimes, be in such denominations and in such form, carry such registrationprivileges, be executed in such manner, be payable in such medium of payment,at such place or places and such time or times and be subject to redemption atsuch premium, if required, and on such terms, as the resolution may provide.The bonds so authorized and issued pursuant to this chapter may be sold atpublic or private sale for any price or prices that the utility district shalldetermine.
(d) Pending the issuance of bonds in definitive form, theutility district may issue bond anticipation notes or interim receipts in suchform as the board of utility commissioners may elect.
(e) The utility district is hereby authorized to provide forthe issuance of refunding bonds of the utility district for the purpose ofrefunding any bonds then outstanding which shall have been issued under theprovisions of this chapter, including the payment of any redemption premium onthe bonds or interest accrued or to accrue to the earliest or subsequent dateof redemption, purchase or maturity of the bonds and, if deemed advisable bythe utility district, for the additional purpose of paying all or a part of thecost of acquiring, constructing, reconstructing, rehabilitating, or improvingany property, facilities or systems or parts of property facilities or systemsof the utility district. The proceeds of bond or notes issued for the purposeof refunding outstanding bonds or notes may be applied, in the discretion ofthe utility district, to the purchase, retirement at maturity or redemption ofoutstanding bonds or notes either on their earliest or a subsequent redemptiondate and may, pending that application, be placed in escrow in the same mannerand through the same means as are generally available to and incumbent uponpolitical subdivisions of the state.
(f) It is hereby declared that the utility district and thecarrying out of its corporate, district and political subdivision purposes isin all respects for the benefit of the people of the state and for theimprovement of their health, welfare and prosperity, and the utility districtwill be performing an essential governmental function in the exercise of thepowers conferred by this chapter. The state therefore covenants with theholders of the utility district's bonds that the utility district shall not berequired to pay taxes or payments in lieu of taxes to the state or any otherpolitical subdivision of the state upon any property of the utility district orunder its jurisdiction, control or supervision, or upon any of the utilitydistrict's activities in the operation or maintenance of the property or uponany earnings, revenues, moneys or other income derived by the utility district,and that the bonds of the utility district and the income from the bonds shallat all times be exempt from taxation by the state and its politicalsubdivisions. Notwithstanding the foregoing, nothing in this section shall bedeemed to prohibit the division of public utilities and carriers, the publicutilities commission and the department of attorney general from assessing theutility in accordance with the provisions of §§ 39-1-23, 39-1-26,39-19-9 and 39-19-14.
(g) The state does hereby pledge to and agree with theholders of the bonds, notes or other indebtedness of the utility district thatthe state will not limit or alter the rights vested in the utility districtuntil the bonds, notes or other evidence of indebtedness, together with theinterest on the debt, are fully met and discharged.
(h) Any resolution or resolutions authorizing any bond, orany issue of bonds, may contain provisions which shall be a part of thecontract with the bondholders of the bonds thereby authorized, as to:
(1) Pledging all or any part of the money, earnings, income,and revenues derived from all or any part of the property of the utilitydistrict to secure the payment of any bonds or of any issue of bonds subject tosuch agreements with bondholders as may then exist;
(2) The rates to be fixed and the charges to be collected andthe amounts to be raised in each year and the use and disposition of theearnings and other revenue;
(3) The setting aside of reserves and the creation of sinkingfunds and the regulation and disposition thereof;
(4) Limitations on the right of the utility district torestrict and regulate the use of the properties in connection with which thebonds are issued;
(5) Limitations on the purposes to which the proceeds of saleof any issue of bonds may be put;
(6) Limitations on the issuance of additional bonds,including refunding bonds and the terms upon which additional bonds may beissued and secured;
(7) The procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the percentage of bondholderswhose consent shall be required for such amendment or abrogation, and themanner in which consent may be given;
(8) The creation of special funds into which any earnings orrevenues of the utility district may be deposited, and the investment of thefunds;
(9) The appointment of a fiscal agent and the determinationof its powers and duties;
(10) Limitations on the power of the utility district to sellor otherwise dispose of its properties;
(11) The preparation of annual budgets by the authority andthe employment of consultants and auditors;
(12) The rights and remedies of bondholders in the event offailure on the part of the utility district to perform any covenant oragreement relating to a bond indenture;
(13) Covenanting that as long as any bonds are outstandingthe utility district shall use its best efforts to establish and maintain itsrates and charges at levels adequate at all times to pay and provide for alloperating expenses of the utility district, all payments of principal,redemption premium (if any), and interest on bonds, notes or other evidences ofindebtedness incurred or assumed by the utility district, all renewals, repairsand replacements to the property and facilities of the utility district, andall other amounts which the utility district may be required by law to pay; and
(14) Any other matters of like or different character whichin any way affect the security or protection of the bonds.
(i) The bonds of the utility district are hereby madesecurities in which all public officers and bodies of this state and allmunicipalities and municipal subdivisions, all insurance companies andassociations and other persons carrying on an insurance business, all banks,bankers, trust companies, savings banks, and savings associations (includingsavings and loan associations), building and loan associations, investmentcompanies and other persons carrying on a banking business, all administrators,guardians, executors, trustees and other fiduciaries and all other personswhomsoever, who are now or may thereafter be authorized to invest in bonds orother obligation of the state may properly and legally invest funds includingcapital in their control or belonging to them. The bonds are also hereby madesecurities which may be deposited with and shall be received by all publicofficers and bodies of this state, and all municipalities and municipalsubdivisions, for any purpose for which the deposit of bonds or otherobligations of this state is now or may thereafter be required.
§ 45-58-11 Bonds. – (a) The utility district shall have the power and is hereby authorized fromtime to time to issue its negotiable bonds for any of its corporate or districtpurposes and to secure the payment of the bonds in such manner and by suchmeans as may be provided in the resolution or resolutions of the utilitydistrict authorizing the bonds, subject to the regulatory jurisdiction of thedivision of public utilities and carriers in the manner prescribed in §39-3-15, where applicable.
(b) The utility district is specifically authorized to securebonds that it may issue from time to time by a pledge of, or creation of othersecurity interest in, the revenues of the utility district, which pledge orsecurity interest may be enforceable by the grant of a conditional franchise,in the event of default in the payment of the bonds, entitling the securedparty or trustee to enter upon and take control of the utility district'sfacilities and service and to provide utility service and receive the revenuesfrom the utility district's facilities and service for such period, notexceeding twenty (20) years, as may be necessary to recover all payments due onthe bonds.
(c) The bonds of the utility district shall be authorized byresolution of the board of utility commissioners. The bonds shall bear suchdate or dates, mature at such time or times not exceeding forty (40) years fromtheir issuance, bear interest at such rate or rates payable at such time ortimes, be in such denominations and in such form, carry such registrationprivileges, be executed in such manner, be payable in such medium of payment,at such place or places and such time or times and be subject to redemption atsuch premium, if required, and on such terms, as the resolution may provide.The bonds so authorized and issued pursuant to this chapter may be sold atpublic or private sale for any price or prices that the utility district shalldetermine.
(d) Pending the issuance of bonds in definitive form, theutility district may issue bond anticipation notes or interim receipts in suchform as the board of utility commissioners may elect.
(e) The utility district is hereby authorized to provide forthe issuance of refunding bonds of the utility district for the purpose ofrefunding any bonds then outstanding which shall have been issued under theprovisions of this chapter, including the payment of any redemption premium onthe bonds or interest accrued or to accrue to the earliest or subsequent dateof redemption, purchase or maturity of the bonds and, if deemed advisable bythe utility district, for the additional purpose of paying all or a part of thecost of acquiring, constructing, reconstructing, rehabilitating, or improvingany property, facilities or systems or parts of property facilities or systemsof the utility district. The proceeds of bond or notes issued for the purposeof refunding outstanding bonds or notes may be applied, in the discretion ofthe utility district, to the purchase, retirement at maturity or redemption ofoutstanding bonds or notes either on their earliest or a subsequent redemptiondate and may, pending that application, be placed in escrow in the same mannerand through the same means as are generally available to and incumbent uponpolitical subdivisions of the state.
(f) It is hereby declared that the utility district and thecarrying out of its corporate, district and political subdivision purposes isin all respects for the benefit of the people of the state and for theimprovement of their health, welfare and prosperity, and the utility districtwill be performing an essential governmental function in the exercise of thepowers conferred by this chapter. The state therefore covenants with theholders of the utility district's bonds that the utility district shall not berequired to pay taxes or payments in lieu of taxes to the state or any otherpolitical subdivision of the state upon any property of the utility district orunder its jurisdiction, control or supervision, or upon any of the utilitydistrict's activities in the operation or maintenance of the property or uponany earnings, revenues, moneys or other income derived by the utility district,and that the bonds of the utility district and the income from the bonds shallat all times be exempt from taxation by the state and its politicalsubdivisions. Notwithstanding the foregoing, nothing in this section shall bedeemed to prohibit the division of public utilities and carriers, the publicutilities commission and the department of attorney general from assessing theutility in accordance with the provisions of §§ 39-1-23, 39-1-26,39-19-9 and 39-19-14.
(g) The state does hereby pledge to and agree with theholders of the bonds, notes or other indebtedness of the utility district thatthe state will not limit or alter the rights vested in the utility districtuntil the bonds, notes or other evidence of indebtedness, together with theinterest on the debt, are fully met and discharged.
(h) Any resolution or resolutions authorizing any bond, orany issue of bonds, may contain provisions which shall be a part of thecontract with the bondholders of the bonds thereby authorized, as to:
(1) Pledging all or any part of the money, earnings, income,and revenues derived from all or any part of the property of the utilitydistrict to secure the payment of any bonds or of any issue of bonds subject tosuch agreements with bondholders as may then exist;
(2) The rates to be fixed and the charges to be collected andthe amounts to be raised in each year and the use and disposition of theearnings and other revenue;
(3) The setting aside of reserves and the creation of sinkingfunds and the regulation and disposition thereof;
(4) Limitations on the right of the utility district torestrict and regulate the use of the properties in connection with which thebonds are issued;
(5) Limitations on the purposes to which the proceeds of saleof any issue of bonds may be put;
(6) Limitations on the issuance of additional bonds,including refunding bonds and the terms upon which additional bonds may beissued and secured;
(7) The procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the percentage of bondholderswhose consent shall be required for such amendment or abrogation, and themanner in which consent may be given;
(8) The creation of special funds into which any earnings orrevenues of the utility district may be deposited, and the investment of thefunds;
(9) The appointment of a fiscal agent and the determinationof its powers and duties;
(10) Limitations on the power of the utility district to sellor otherwise dispose of its properties;
(11) The preparation of annual budgets by the authority andthe employment of consultants and auditors;
(12) The rights and remedies of bondholders in the event offailure on the part of the utility district to perform any covenant oragreement relating to a bond indenture;
(13) Covenanting that as long as any bonds are outstandingthe utility district shall use its best efforts to establish and maintain itsrates and charges at levels adequate at all times to pay and provide for alloperating expenses of the utility district, all payments of principal,redemption premium (if any), and interest on bonds, notes or other evidences ofindebtedness incurred or assumed by the utility district, all renewals, repairsand replacements to the property and facilities of the utility district, andall other amounts which the utility district may be required by law to pay; and
(14) Any other matters of like or different character whichin any way affect the security or protection of the bonds.
(i) The bonds of the utility district are hereby madesecurities in which all public officers and bodies of this state and allmunicipalities and municipal subdivisions, all insurance companies andassociations and other persons carrying on an insurance business, all banks,bankers, trust companies, savings banks, and savings associations (includingsavings and loan associations), building and loan associations, investmentcompanies and other persons carrying on a banking business, all administrators,guardians, executors, trustees and other fiduciaries and all other personswhomsoever, who are now or may thereafter be authorized to invest in bonds orother obligation of the state may properly and legally invest funds includingcapital in their control or belonging to them. The bonds are also hereby madesecurities which may be deposited with and shall be received by all publicofficers and bodies of this state, and all municipalities and municipalsubdivisions, for any purpose for which the deposit of bonds or otherobligations of this state is now or may thereafter be required.
