§ 45-38.1-15. Revenue refunding bonds. (a) The corporation is authorized to provide for the issuance of its revenue bonds for the purpose of refunding any revenue bonds of the corporation then outstanding and any bonds or other obligations issued by or for the benefit of a participating educational institution for any school housing project, including the payment of any redemption premium on them and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the revenue bonds, and, if deemed advisable by the corporation, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project, or any portion of it, or for making additional corporation loans.

(b) The proceeds of revenue bonds issued for the purpose of refunding outstanding revenue bonds may, in the discretion of the corporation, be applied to the purchase or retirement at maturity or redemption of the outstanding revenue bonds, either on their earliest or any subsequent redemption date, and may, pending the application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption on a date that may be determined by the corporation.

(c) Any escrowed proceeds, pending use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing at a time or times appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding revenue bonds being refunded. The interest, income, and profits, if any, earned or realized on the investment may also be applied to the payment of the outstanding revenue bonds being refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds and interest, income, and profits, if any, earned or realized on the investments, may be returned to the corporation for use by it in any lawful manner.

(d) The portion of the proceeds of revenue bonds issued for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing not later than the time or times when the proceeds will be needed for the purpose of paying all or any part of the cost. The interest, income, and profits, if any, earned or realized on the investment, may be applied to the payment of all or any part of the cost or may be used by the corporation in any lawful manner.

(e) All revenue bonds shall be issued and secured and shall be subject to the provisions of this chapter in the same manner and in the same extent as any other revenue bonds issued pursuant to this chapter.

History of Section. (P.L. 1967, ch. 56, § 1; P.L. 1982, ch. 301, § 7; P.L. 2007, ch. 370, § 2.)