R.I. Gen. Laws § 44-60-1 — Borrowing in anticipation of receipts from taxes

(a) The state of Rhode Island is hereby authorized to borrow during its fiscal year ending
June 30, 2002, in anticipation of receipts from taxes, any sum or sums, at any time
or times and upon any terms and conditions not inconsistent with the provisions and
limitations of R.I. Const., Art. VI, § 17, that the general treasurer, with the advice of the governor, shall deem for the
best interests of the state, provided that the amounts so borrowed shall not exceed
one hundred fifty million dollars ($150,000,000), at any time outstanding. The state
is hereby further authorized to give its promissory note or notes signed by the general
treasurer and counter-signed by the secretary of state for the payment of any sum
so borrowed. Any proceeds shall be invested by the general treasurer until such time
that they are needed. The interest income earned from the investments shall be used
to pay the interest on the promissory note or notes, and any expense of issuing the
promissory note or notes, with the balance remaining at the end of the fiscal year,
if any, shall be used toward the payment of long-term debt service of the state, unless
prohibited by federal law or regulation.
(b) Notwithstanding any other authority to the contrary, duly authorized bonds or notes
of the state issued during the fiscal year ending June 30, 2002, may be issued in
the form of commercial paper, so-called. In connection with this provision, the state,
acting through the general treasurer, may enter into agreements with banks, trust
companies or other financial institutions within or outside the state, whether in
the form of letters or lines of credit, liquidity facilities, insurance or other support
arrangements. Any notes issued as commercial paper shall be in any amounts and bear
any terms that the general treasurer, with the advice of the governor, shall determine,
which may include provisions for prepayment at any time with or without premium at
the option of the state. The notes may be sold at a premium or discount, and may bear
interest or not and, if interest bearing, may bear interest at any rate or rates variable
from time to time as determined by the Federal Reserve Bank Composite Index of Commercial
Paper, or the Municipal Market Data General Market Index or other similar commercial
paper offerings, or other method specified in any agreement with brokers for the placement
or marketing of the notes issued as commercial paper, or other like agreements. Any
such agreement may also include any other covenants and provisions for protecting
the rights, security and remedies of the lenders that may, in the discretion of the
general treasurer, be reasonable, legal and proper. The general treasurer may also
enter into agreements with brokers for the placement or marketing of the notes of
the state issued as commercial paper. Any notes to the state issued as commercial
paper in anticipation of receipts from taxes in any fiscal year must also be issued
in accordance with the provisions of R.I. Const., Art. VI, § 17 and within the limitation set forth in this section.