As spelled out in the:
“Loan and Trust Agreement among RHODE ISLAND ECONOMIC DEVELOPMENT CORPORATION and 38 Studios, LLC. and the Bank of New York Mellon Trust Company”
@ Page #9 :
“Neither the State of Rhode Island nor any municipality thereof shall be obligated to pay the principal of the bonds, the premium, if any, the Redemption Price, or the interest thereon. Neither the faith and credit, nor the taking and taxing power of the State of Rhode Island, any political subdivision thereof, or any municipality thereof, is pledged to the payment of the principal of the bonds, the premium, the redemption price or the interest thereon. The bonds do not now and shall never constitute a debt or liability of the State of Rhode Island, or any municipality thereof or bonds issued or guaranteed by them within the meaning of any constitutional or statutory limitation….”
“The holder of the bonds shall have no right to enforce the provisions of the agreement or to institute action to enforce the covenants therein, or to take any action with respect to any default under the agreement, or to institute, appear in, or defend any suit or other proceedings with respect thereto,…”
How about binding them to the terms of the Agreement this year?
If the state’s obligation to honor the pledge is moral rather than legal – future legislatures cannot be legally obligated to appropriate the funds.
Read more: http://www.answers.com/topic/moral-obligation-bond#ixzz