(a)  In the event that the Rhode Island commerce corporation shall default in the payment of principal of or interest on any bonds or notes issued under this chapter after the bonds or notes shall become due, whether at maturity or upon call for redemption, and the default shall continue for a period of thirty (30) days, or in the event that the corporation shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of an issue of bonds or notes of the corporation the holders of twenty-five percent (25%) in aggregate principal amount of the bonds or notes of an issue then outstanding, by instrument or instruments filed in the office of the secretary of state and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of the bonds or notes for the purposes provided in this section.

Terms Used In Rhode Island General Laws 42-64-25

  • 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.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • 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
  • State: means the state of Rhode Island. See Rhode Island General Laws 42-64-3
  • Trustee: A person or institution holding and administering property in trust.

(b)  The trustee may, and upon written request of the holders of twenty-five percent (25%) in principal amount of the bonds or notes then outstanding shall, in the trustee’s own name:

(1)  Enforce all rights of the bondholders or note-holders, including the right to require the corporation to collect rent, interest repayments and payments on the leases, mortgages, loan agreements and sales agreements held by it adequate to carry out any agreement as to, or pledge of, rent, interest repayments and payments, and to require the corporation to carry out any other agreements with the holders of the bonds or notes and to perform its duties under this chapter;

(2)  Enforce all rights of the bondholders or note-holders so as to carry out any contract as to, or pledge of, revenues, and to require the corporation to carry out and perform the terms of any contract with the holders of its bonds or notes or its duties under the chapter;

(3)  Bring suit upon all or any part of the bonds or notes;

(4)  By action or suit, require the corporation to account as if it were the trustee of an express trust for the holders of the bonds or notes;

(5)  By action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the bonds or notes;

(6)  Declare all the bonds or notes due and payable and, if all defaults shall be made good, then, with the consent of the holders of twenty-five percent (25%) of the principal amount of the bonds or notes then outstanding, to annul the declaration and its consequences.

(c)  The trustee shall, in addition to the foregoing, have and possess all the powers necessary or appropriate for the exercise of any functions specifically set forth in this section or incident to the general representation of bondholders or note-holders in the enforcement and protection of their rights.

(d)  Before declaring the principal of bonds or notes due and payable, the trustee shall first give thirty (30) days’ notice, in writing, to the governor of the state and to the corporation.

(e)  The superior court of Providence County shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders or note-holders.

History of Section.
P.L. 1974, ch. 100, § 14; P.L. 2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.