§ 115D-58.15. Lease purchase and installment purchase contracts for equipment.
§ 115D‑58.15. Leasepurchase and installment purchase contracts for equipment.
(a) Authority. Theboard of trustees of a community college may use lease purchase or installmentpurchase contracts to purchase or finance the purchase of equipment as providedin this section. A college shall not have more than five State‑fundedcontracts in effect at any one time.
(b) Contract Approval. Contracts for more than one hundred thousand dollars ($100,000) or for a termof more than three years shall be subject to review and approval as provided inthis subsection. If the source of funds for payment of the obligation by thecommunity college is intended to be local funds, the contract must be approvedby resolution of the tax‑levying authority, and the authority mustacknowledge in writing its understanding that the community college may requireappropriations from the tax‑levying authority in order to meet thecollege's obligations under the contract. The tax‑levying authority mayin each fiscal year appropriate sufficient funds to meet the amounts to be paidduring the fiscal year under the contract. If the source of funds for paymentof the obligation by the community college is intended to be State funds, thecontract must be approved by resolution of the State Board of CommunityColleges. The State Board may in each fiscal year allocate sufficient funds tomeet the amounts to be paid during the fiscal year under the contract.
(c) Local GovernmentCommission. A contract that is subject to approval by the tax‑levyingauthority also shall be subject to approval by the Local Government Commissionas provided in Article 8 of Chapter 159 of the General Statutes if thecontract:
(1) Extends for five ormore years from the date of the contract;
(2) Obligates the boardof trustees to pay sums of money to another, regardless of whether the payee isa party to the contract; and
(3) Obligates the boardof trustees to pay five hundred thousand dollars ($500,000) or more over thefull term of the contract.
(d) Application ofSection. When determining whether a contract is subject to approval underthis section the total cost of exercising an option to upgrade property shallbe taken into consideration. The term of a contract shall include periods thatmay be added to the original term through the exercise of an option to renew orextend.
(e) NonsubstitutionClause. No contract entered into under this section may contain anonsubstitution clause that restricts the right of a board of trustees to:
(1) Continue to providea service or activity; or
(2) Replace or provide asubstitute for any property financed or purchased by the contract.
(f) NonappropriationsClause. No deficiency judgment may be rendered against any board of trustees,any tax‑levying authority, the State Board of Community Colleges, or theState of North Carolina in any action for breach of a contractual obligationauthorized by this section. The taxing power of a tax‑levying authorityand the State is not and may not be pledged directly or indirectly to secureany moneys due under a contract authorized by this section. (1998‑111, s. 2; 2007‑484,s. 29(e).)