Rhode Island General Laws Title 46. Waters and Navigation § 46-12.2-12.1. Power of local governmental units to issue limited obligations payable from energy efficiency savings

(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 an appropriation of general revenues in an amount not to exceed the projected energy savings of the project. 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 such local governmental obligations 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 section shall constitute the bond act for the issuance of such local governmental obligations by local governmental units. Any local governmental obligations issued in accordance with this section shall recite on its face that it is a limited obligation payable solely from an appropriation of general revenues in an amount not to exceed the projected energy savings pledged to its payment.

(b) The issuance 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 obligation 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.

(c) A local government unit may appropriate general revenues on an annual basis to pay any local governmental obligation provided that an event of non-appropriation shall not be an event of default under any local governmental obligation.