(a)  If required by the applicable loan agreement, and notwithstanding any general or special law or municipal charter to the contrary, local governmental obligations shall be issued as limited obligations payable solely from wastewater system revenues pledged to their payment in accordance with § 46-12.2-13. If required by the applicable loan agreement, local governmental obligations issued in accordance with this section shall also be general obligations of the local governmental unit and secured by a pledge of its full faith and credit. Notwithstanding § 45-12-2 or any general or special law or municipal charter to the contrary, all local governmental units shall have the power to issue local governmental obligations payable solely from wastewater system revenues pursuant to this section without limit as to amount, and the amount of principal and premium, if any, and interest on the obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes which may be levied or assessed by the local governmental unit in any year or on any assessment, levy, or other charge made by the local governmental unit on any other political subdivision or instrumentality of the state. This chapter shall constitute the bond act for the issuance of the local governmental obligations payable solely from wastewater system revenues by local governmental units. Any local governmental obligations issued in accordance with this section that is payable solely from wastewater system revenues shall recite on its face that it is a limited obligation payable solely from wastewater system revenues pledged to its payment.

Terms Used In Rhode Island General Laws 46-12.2-12

  • 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.
  • Revenues: when used with reference to the agency, means any receipts, fees, payments, moneys, revenues, or other payments received or to be received by the agency in the exercise of its corporate powers under this chapter, including, without limitation: loan repayments, payments on local governmental obligations, non-governmental obligations, grants, aid, appropriations, and other assistance from the state, the United States, or any agency, 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, including, without limitation, the water pollution control revolving fund, the Rhode Island water pollution control revolving fund, and the local interest subsidy fund, and any other fees, charges or other income received or receivable by the agency;

    (27)  "Rhode Island water pollution control revolving fund" means the Rhode Island water pollution control revolving fund established pursuant to § 46-12. See Rhode Island General Laws 46-12.2-2

(b)  The issue of local governmental obligations in accordance with this section, the maturity or maturities and other terms thereof, the security therefor, the rights of the holders thereof, and the rights, duties, and obligations of the local governmental unit in respect of the same shall be governed by the provisions of this chapter relating to the issue of local governmental obligations to the extent applicable and not inconsistent with this section.

History of Section.
P.L. 1989, ch. 303, § 2.