R.I. Gen. Laws § 45-54-16
The corporation is authorized to provide for the issuance of refunding bonds of the corporation for the purpose of refunding any bonds then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon or interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of the bonds and, if deemed advisable by the authority, for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, or improving any project. The proceeds of bonds or notes issued for the purpose of refunding outstanding bonds or notes may be applied, in the discretion of the corporation, to the purchase, retirement at maturity, or redemption of the outstanding bonds or notes either on their earliest or a subsequent redemption date, and may, pending that application, be placed in escrow. Any escrowed proceeds may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit, time deposits, or repurchase agreements fully secured or guaranteed by the state or the United States, or an instrumentality of either, maturing at the time or times appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds or notes to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of the proceeds, and interest, income, and profits, if any, earned or realized on the investments, may be returned to the corporation for use by it in furtherance of its purposes. The portion of the proceeds of bonds or notes issued for the additional purpose of paying all or part of the cost of acquiring, constructing, reconstructing, rehabilitating, developing, or improving any project may be invested and reinvested in obligations, securities, and other investments consistent herewith, that are specified in the resolutions under which the bonds are authorized, and which shall mature not later than the times when the proceeds will be needed for these purposes. The interest, income, and profits, if any, earned or realized on the investments may be applied to the payment of all parts of the costs, or may be used by the corporation in furtherance of its purposes. The issuance of the bonds, the maturities, and other details, the rights of the holders, and the rights, duties, and obligations of the corporation in respect to all of the above shall be governed by the provisions of this chapter insofar as the provisions may be applicable.
R.I. Gen. Laws § 45-54-16