State Codes and Statutes
Statutes > Rhode-island > Title-45 > Chapter-45-58 > 45-58-12SECTION 45-58-12
§ 45-58-12 Money of the utility district.– (a) All money of the utility district, from whatever source derived, shall bepaid to the treasurer of the utility district. The money on receipt shall bedeposited forthwith in a separate bank account or accounts. The money in theaccounts shall be paid out with a check of the treasurer, on requisition by theutility district, or of any other person or persons that the utility districtmay authorize to make the requisitions. All deposits of money shall be securedby obligations of the United States or of the state, of a market value at alltimes not less than the amount of deposits, and all banks and trust companiesare authorized to give security for the deposits. The utility district shallhave the power, notwithstanding the provisions of this section, to contractwith the holders of any of its bonds as to the custody, collection, security,investment and payment of any money of the authority, or any money held intrust or otherwise for the payment of bonds or in any way to secure the bonds,and to carry out any contract notwithstanding that the contract may beinconsistent with the previous provisions of this section. Money held in trustor otherwise for the payment of bonds or in any way to secure bonds anddeposits of money may be secured in the same manner as the money of theauthority, and all banks and trust companies are authorized to give securityfor the deposits.
(b) Notwithstanding subsection (a) of this section, or anyother provision of this chapter, the board of utility commissioners shall havethe power to authorize by resolution a loan or advance from one utility fund ofthe utility district to another. Any such interfund advance or loan shall befor a term specified in the authorizing resolution of the board of utilitycommissioners and shall bear interest at a rate reasonably determined by theboard of utility commissioners to be consistent with the public interestimplicated in all funds involved in the interfund loan or advance; provided,however, that an interest rate set at the rate applicable to the utilitydistrict's most recent borrowing from a bank or other financial institutionshall be presumptively reasonable as the rate of interest for an interfund loanor advance.
