(a)  The principal of and interest on any bonds or notes issued by the Rhode Island commerce corporation may be secured by a pledge of any revenues and receipts of the corporation and may be secured by a mortgage or other instrument covering all or any part of one or more projects, including all or part of any additions, improvements, extensions to, or enlargements of projects thereafter made.

Terms Used In Rhode Island General Laws 42-64-17

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • notes: means the bonds, notes, securities, or other obligations or evidences of indebtedness issued by the corporation pursuant to this chapter, all of which shall be issued under the name of and known as obligations of the "Rhode Island commerce corporation. See Rhode Island General Laws 42-64-3
  • Revenues: means : (i) with respect to any project, the rents, fees, tolls, charges, installment payments, repayments, and other income or profit derived from a project or a combination of projects pursuant to any lease, conditional sales contract, installment sales contract, loan agreement, or other contract or agreement, or any combination thereof, and (ii) any receipts, fees, payments, moneys, revenues or other payments received or to be received by the corporation in the exercise of its corporate powers under this chapter, including, without limitation, loan repayments, grants, aid, appropriations and other assistance for the state, the United States or any corporation, department or instrumentality of either or of a political subdivision thereof, bond proceeds, investment earnings, insurance proceeds, amounts in reserves and other funds and accounts established by or pursuant to this chapter or in connection with the issuance of bonds, and any other taxes, assessments, fees, charges, awards or other income or amounts received or receivable by the corporation. See Rhode Island General Laws 42-64-3
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trustee: A person or institution holding and administering property in trust.

(b)  Bonds or notes issued for the acquisition, construction, reconstruction, rehabilitation, development, or improvement of one or more projects may also be secured by an assignment of leases of, or mortgages on, or contracts of sale or loan agreements with regard to the project or projects and by an assignment of the revenues, receipts, payments, or repayments derived by the corporation from those leases, mortgages, sales agreements, or loan agreements.

(c)  The resolution under which the bonds or notes are authorized to be issued and any mortgage, lease, sales agreement, or loan agreement, or other instrument may contain agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents, payments or repayments or other revenues, including moneys received in repayment of loans, and interest on the loans, the creation and maintenance of special funds from rents or other revenues and the rights and remedies available in the event of default, all as the corporation shall deem advisable.

(d)  Each pledge, agreement, mortgage, or other instrument made for the benefit or security of any of the bonds or notes of the corporation shall be valid and binding from the time the pledge is made and shall continue in effect until the principal of and interest on the bonds or notes for the benefit of which the pledge was made has been fully paid, or until provision has been made for the payment in the manner provided in the resolutions under which those bonds or notes were authorized. The revenues, moneys, or property pledged by the corporation shall immediately be subject to the lien of that pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

(e)  The corporation may provide in any proceedings under which bonds or notes may be authorized that any project or part of a project may be constructed, reconstructed, rehabilitated, or improved by the corporation, or any lessee, vendee, obligor, or any designee of the corporation and may also provide in those proceedings for the time and manner of and requisitions for disbursements to be made for the cost of the construction, and for any certificates and approvals of construction and disbursements that the corporation shall deem necessary and provide for in those proceedings.

(f)  Any resolution under which bonds or notes of the corporation are authorized to be issued (and any trust indenture established thereby) may contain provisions for vesting in a trustee or trustees those properties, rights, powers, and duties in trust that the corporation may determine, including any or all of the rights, powers, and duties of the trustee appointed by the holders of any issue of bonds or notes pursuant to § 42-64-25, in which event the provisions of § 42-64-25 authorizing the appointment of a trustee by holders of bonds or notes shall not apply.

History of Section.
P.L. 1974, ch. 100, § 14; P.L. 1983 (S.S.), ch. 332, art. III, § 3; P.L. 2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.