(a)  Except with regard to state reimbursement related to school housing project financing, the state is not liable for the payment of the principal of or interest on any bonds or notes of the corporation, or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds or notes of the corporation nor any of its agreements or obligations, except for state reimbursement related to school housing project financing, are construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds or notes, under the provisions of this chapter, directly or indirectly or contingently obligate the state or any municipality or political subdivision of the state to levy or to pledge any form of taxation for them or to make any appropriation for their payment, except for state reimbursement for school housing projects. All of the revenue bonds or notes shall contain on the face a statement to the effect that neither the state nor the corporation are obligated to pay the revenue bonds or notes, or their interest except from revenues of the project or projects for which they are issued, and that neither the faith and credit nor the taxing power of the state or of any municipality or political subdivision of the state is pledged to the payment of the principal of or the interest on those bonds or notes; provided, however, that in connection with any state housing project financing, the statement on the face of the bonds shall also include an exception for state reimbursement.

Terms Used In Rhode Island General Laws 45-38.1-19

  • 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
  • Bonds: means bonds of the corporation issued under the provisions of this chapter, including refunding bonds, notwithstanding that the bonds may be secured by mortgage or the full faith and credit of the corporation or the full faith and credit of a participating institution for higher education or of a participating municipality or of a participating healthcare provider or any other lawfully pledged security of a participating educational institution or child daycare center or of a participating municipality or of a participating healthcare provider. See Rhode Island General Laws 45-38.1-3
  • 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.
  • Corporation: means the Rhode Island health and educational building corporation created and established as a nonbusiness corporation, under and pursuant to chapter 6 of Title 7, as amended, and constituted and established as a public body corporate and agency of the state under § 45-38. See Rhode Island General Laws 45-38.1-3
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Municipality: means any city or town located in the state with powers set forth in this title. See Rhode Island General Laws 45-38.1-3
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • School housing project: means an "approved project" as defined in § 16-7-36. See Rhode Island General Laws 45-38.1-3
  • School housing project financing: means bonds issued through the corporation to fund school housing projects as provided in and permitted by § 16-7-44. See Rhode Island General Laws 45-38.1-3
  • State: means the state of Rhode Island. See Rhode Island General Laws 45-38.1-3
  • State reimbursement: shall mean the state's share of school housing project cost as determined in accordance with § 16-7-35 — § 16-7-47. See Rhode Island General Laws 45-38.1-3

(b)  Nothing contained in this section shall prevent nor be construed to prevent the corporation from pledging its full faith and credit or the full faith and credit of a participating institution for higher education or health care provider to the payment of bonds or notes, or issue of bonds or notes authorized pursuant to this chapter.

History of Section.
P.L. 1967, ch. 56, § 1; P.L. 1968, ch. 224, § 2; P.L. 1991, ch. 292, § 1; P.L. 2000, ch. 184, § 1; P.L. 2004, ch. 595, art. 23, § 1.