(a)  Notwithstanding any provision of any other law, including the Uniform Commercial Code:

(1)  Any pledge or assignment of revenues of any kind, funds, loan agreements, local governmental obligations, obligations of private water companies, property, or assets made pursuant to the provisions of this chapter by the agency, any local governmental unit, or any privately organized water supplier hereunder, shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise, whether or not the parties have notice thereof, and shall be deemed continuously perfected from the time it is made;

(2)  No filing of any kind with respect to a pledge or assignment need be made under the Uniform Commercial Code, or otherwise;

(3)  Unless otherwise provided in the loan agreement, a pledge of revenues of any kind shall be deemed to include a pledge of any accounts or general intangibles from which the pledged 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 agency, local governmental unit or privately organized water supplier, and the proceeds of the accounts or general intangibles; and

(4)  The pledge of revenues of any kind, accounts, and general intangibles shall be subject to the lien of the pledge without delivery or segregation, and the lien of the pledge shall be valid and binding against all parties having claims of contract or tort or otherwise against the agency or local governmental unit.

Terms Used In Rhode Island General Laws 46-12.8-16

  • 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
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • 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.
  • 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 revenues of any kind under this chapter shall constitute a sufficient appropriation thereof 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” shall be construed to include the grant of a security interest under the Uniform Commercial Code.

History of Section.
P.L. 1993, ch. 313, § 1; P.L. 1993, ch. 396, § 1.