(a)  Notwithstanding any provision of any other law, including the Uniform Commercial Code, § 6A-1-101 — § 6A-9-507:

(1)  Any pledge under this chapter is valid and binding, and deemed continuously perfected from the time it is made;

(2)  No filing need be made under the Uniform Commercial Code or otherwise;

(3)  Unless otherwise provided in the financing instruments, a pledge of project revenues is deemed to include a pledge of any accounts or general intangibles from which revenues are derived, whether existing at the time of the pledge or thereafter coming into existence, and whether held at the time of the pledge or thereafter acquired by the city or town, and the proceeds of the accounts or general intangibles; and

(4)  The pledge of project revenues, accounts, and general intangibles is subject to the lien of the pledge without delivery or segregation, and the lien of the pledge is valid and binding against all parties having claims of contract or tort or otherwise against the city or town.

Terms Used In Rhode Island General Laws 45-33.2-8

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Contract: A legal written agreement that becomes binding when signed.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • 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.
  • town: may be construed to include city; the words "town council" include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC

(b)  A pledge of project revenues under this chapter constitutes a sufficient appropriation for the purposes of any provision for appropriation, and the revenues may be applied as required by the pledge without further appropriation.

(c)  For the purposes of this section the word “pledge” is construed to include the grant of a security interest under the Uniform Commercial Code.

History of Section.
P.L. 1984, ch. 78, § 1.