Rhode Island Code of Regulations Title 875 - Industrial Facilities Corporation
Rhode Island Code of Regulations Title 875 – Industrial Facilities Corporation (IFC): Overview
Title 875 governs the Industrial Facilities Corporation (IFC) in Rhode Island, a public corporation created to promote economic development by facilitating industrial and commercial growth. The IFC provides financing assistance, issues bonds, and supports projects that generate jobs and stimulate investment within the state.
The regulations under Title 875 establish the IFC’s operational procedures, project eligibility criteria, financing mechanisms, and governance rules.
Key Areas Covered in Title 875 Regulations
Purpose and Powers of IFC
Authority to issue bonds and notes to finance industrial and commercial projects.
Support for projects that create employment and economic growth.
Application and Approval Process
Procedures for businesses or municipalities to apply for IFC financing.
Criteria for project eligibility, including job creation and community impact.
Financing and Bond Issuance
Rules governing the issuance, sale, and repayment of bonds.
Terms and conditions for loans or financing agreements.
Governance and Administration
Structure of the IFC Board of Directors.
Responsibilities for oversight, reporting, and compliance.
Compliance and Reporting
Requirements for recipients to report on job creation, financial performance, and use of funds.
Enforcement mechanisms for non-compliance.
Relevant Case Law Principles Related to IFC Functions
1. Smith v. Rhode Island Industrial Facilities Corporation (Hypothetical Case)
Facts: A business challenged the IFC’s denial of bond financing, alleging arbitrary decision-making.
Holding: The court upheld the IFC’s decision, noting that the Corporation has discretion to evaluate projects based on statutory criteria and economic impact.
Significance: Affirms the IFC’s broad authority to approve or deny financing based on policy and economic considerations.
2. Jones v. IFC Board of Directors (Hypothetical Case)
Facts: A stakeholder alleged that the IFC Board failed to follow proper procedures in approving a bond issuance.
Holding: The court required the IFC to adhere to its own procedural rules, including notice and meeting requirements.
Significance: Emphasizes that the IFC must comply with governance rules and ensure transparency in decision-making.
3. Brown v. Rhode Island Industrial Facilities Corporation (Hypothetical Case)
Facts: A municipality contested IFC’s imposition of reporting requirements as a condition of financing.
Holding: The court upheld the reporting obligations, citing the need for accountability and oversight of public funds.
Significance: Supports the IFC’s authority to impose compliance and reporting requirements to ensure proper use of funds.
4. Doe v. Industrial Facilities Corporation (Hypothetical Case)
Facts: A recipient of IFC financing failed to meet job creation targets, and the IFC sought remedies.
Holding: The court affirmed IFC’s right to enforce contractual conditions and seek penalties or repayment.
Significance: Reinforces the importance of performance obligations tied to IFC funding.
Summary Table
| Aspect | Explanation |
|---|---|
| Purpose & Powers | Promote economic growth via bond issuance |
| Application Process | Criteria and procedures for financing approval |
| Bond Issuance & Financing | Terms and conditions of financing instruments |
| Governance | Board oversight and administrative rules |
| Compliance & Reporting | Obligations of recipients and enforcement |
Conclusion
The Rhode Island Code of Regulations Title 875 establishes a framework for the Industrial Facilities Corporation to facilitate economic development through financial assistance and bond issuance. The case law principles affirm the IFC’s discretionary power in project approval while emphasizing transparency, procedural compliance, and accountability.
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