THE IMMORALITY OF MORAL OBLIGATION BONDS

FED UP in RI

RITC - BLUE MASTER BANNER - POLITICS - MORAL OBLIGATION BONDS - MITCHELL AND SKEFFINGTON

For many politicians, limits on their power to incur debt are an obstacle to be evaded rather than a concept to be honored. This is why some Rhode Island politicians want Rhode Island taxpayers to honor and pay a moral obligation bond for 38 Studios. Presently, there is a debate about whether Rhode Island should pay the moral obligation bond issued by the R.I. Economic Development Corporation (EDC) for 38 Studios. Over the next eight years, Rhode Island would pay at least $90 million if it honors this moral obligation bond. However, Rhode Island is under no legal obligation to pay this bond. Rhode Island is only legally required to pay general obligation bonds, which have been approved by the voters in a referendum consistent with the state constitution.

View original post 963 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s