Rhode Island General Laws Title 35. Public Finance § 35-8.1-12. Receipt, investment, and application by state of loan

(a) Other than as provided in subsection (b), the proceeds of a loan to the state shall, upon their receipt, be paid by the general treasurer immediately to the paying agent or other suitable trustee for the 1984 and 1985 bonds and the paying agent or trustee shall hold the proceeds in trust until they are applied to pay the 1984 and 1985 bonds. Neither the governor nor the general treasurer or any other official of the state or trustee for the 1984 and 1985 bonds shall make or permit to be made any expenditures for new capital improvements from the proceeds of the loan. While the proceeds are held in trust, they may be invested in obligations of the United States or the state or any other state.

(b) The proceeds generated for refinancing the pension obligation shall be paid to the general treasurer on behalf of the state, who shall then immediately remit the proceeds to the state retirement system. Neither the governor nor the general treasurer or any other official of the state shall make any expenditures for new capital improvements from the proceeds. While the proceeds are held by the state retirement system they shall be invested pursuant to the investment statutes and policies of the state investment commission.

(c) The board, with the approval of the governor, shall have the authority to appoint a paying agent or other suitable trustee for the 1984-1985 bonds and the governor is authorized to execute any documents or agreements on behalf of the state necessary to carry out the purposes of this section.

(d) Any proceeds issued pursuant to § 35-8.1-13(d), can be used in accordance within the terms of any trust or agreement entered into by the authority in connection with such bonds.