§ 131A-11. Bonds and notes.
§131A‑11. Bonds and notes.
The Commission is herebyauthorized to provide for the issuance, at one time or from time to time, ofbonds, or notes in anticipation of the issuance of bonds, of the Commission tocarry out and effectuate its corporate purposes. The principal of and theinterest on such bonds or notes shall be payable solely from funds providedunder this Chapter for such payment. Any such notes may be made payable fromthe proceeds of bonds or renewal notes or, in the event bond or renewal noteproceeds are not available, such notes may be paid from any available revenuesor other funds provided therefor. The bonds or notes of each issue shall bedated and may be made redeemable before maturity at the option of theCommission at such price or prices and upon such terms and conditions as may bedetermined by the Commission. Any such bonds or notes shall bear interest atsuch rate or rates as may be determined by the Local Government Commission ofNorth Carolina with the approval of the Commission. Notes shall mature at suchtime or times not exceeding 10 years from their date or dates and bonds shallmature at such time or times not exceeding 40 years from their date or dates,as may be determined by the Commission. The Commission shall determine the formand manner of execution of the bonds or notes, including any interest couponsto be attached thereto, and shall fix the denomination or denominations and theplace or places of payment of principal and interest, which may be any bank ortrust company within or without the State. In case any officer whose signatureor a facsimile of whose signature shall appear on any bonds or notes or couponsattached thereto shall cease to be such officer before the delivery thereof,such signature or such facsimile shall nevertheless be valid and sufficient forall purposes the same as if he had remained in office until such delivery. TheCommission may also provide for the authentication of the bonds or notes by atrustee or fiscal agent. The bonds or notes may be issued in coupon or inregistered form, or both, as the Commission may determine, and provision may bemade for the registration of any coupon bonds or notes as to principal aloneand also as to both principal and interest, and for the reconversion into couponbonds or notes of any bonds or notes registered as to both principal andinterest, and for the interchange of registered and coupon bonds or notes. Nobonds or notes may be issued by the Commission under this Chapter unless theissuance thereof is approved by the Local Government Commission of NorthCarolina.
The Commission shall file withthe Secretary of the Local Government Commission an application requestingapproval of the issuance of such bonds or notes which shall contain suchinformation and have attached to it such documents concerning the proposedfinancing and prospective borrower, vendee or lessee as the Secretary mayrequire.
In determining whether aproposed bond or note issue should be approved, the Local Government Commissionmay consider, in addition to the criteria and requirements mentioned in G.S.131A‑5, the effect of the proposed financing upon any scheduled orproposed sale of tax‑ exempt obligations by the State or any of itsagencies or departments or by any unit of local government in the State.
The Local GovernmentCommission shall approve the issuance of such bonds or notes if, upon theinformation and evidence it receives, it finds and determines that the proposedfinancing will effectuate the purposes of this Chapter.
Upon the filing with the LocalGovernment Commission of a resolution of the Commission requesting that itsbonds or notes be sold, such bonds or notes may be sold in such manner, eitherat public or private sale, and for such price as the Local Government Commissionshall determine to be for the best interests of the Commission and effectuatebest the purposes of this Chapter, provided that such sale shall be approved bythe Commission.
The proceeds of any bonds ornotes shall be used solely for the purposes for which issued and shall bedisbursed in such manner and under such restrictions, if any, as the Commissionmay provide in the resolution authorizing the issuance of, or any trustagreement securing, such bonds or notes.
Prior to the preparation ofdefinitive bonds, the Commission may, under like restrictions, issue interimreceipts or temporary bonds, with or without coupons, exchangeable fordefinitive bonds, when such bonds shall have been executed and are availablefor delivery. The Commission may also provide for the replacement of any bondsor notes which shall become mutilated or shall be destroyed or lost.
Bonds or notes may be issuedunder the provisions of this Chapter without obtaining, except as otherwiseexpressly provided in this Chapter, the consent of any department, division,commission, board, body, bureau or agency of the State, and without any otherproceedings or the happening of any conditions or things other than thoseproceedings, conditions or things which are specifically required by thisChapter and the provisions of the resolution authorizing the issuance of, orany trust agreement securing, such bonds or notes. (1975, c. 766, s. 1; 1979, c.54, s. 10.)