R.I. Gen. Laws § 16-32-12: Acquisition of land — Guaranty of loans to societies of students.

The board of trustees is authorized and empowered on behalf of the university of Rhode Island to acquire land and also to guarantee in the name of the state approved loans made to societies of students at the university, for the purchase or construction, upon lands owned by the university, of society houses which shall serve as student dormitories. Any loans approved, upon default, shall become state obligations in the same manner as any state bond.