§ 142-82. Definitions.
§ 142‑82. Definitions.
The following definitionsapply in this Article:
(1) Bonded indebtedness. Limited obligation bonds and bond anticipation notes, including refundingbonds and notes, authorized to be issued under this Article.
(2) Bonds or notes. Limited obligation bonds and notes authorized to be issued under this Article.
(3) Capital facility. Any one or more of the following:
a. Any one or morebuildings, utilities, structures, or other facilities or property developments,including streets and landscaping, and the acquisition of equipment, machinery,and furnishings in connection with these items.
b. Additions,extensions, enlargements, renovations, and improvements to existing buildings,utilities, structures, or other facilities or property developments, includingstreets and landscaping.
c. Land or an interestin land.
d. Otherinfrastructure.
e. Furniture, fixtures,equipment, vehicles, machinery, and similar items.
(4) Certificates ofparticipation. Certificates or other instruments delivered by a specialcorporation evidencing the assignment of proportionate undivided interests inrights to receive payments pursuant to a financing contract.
(5) Certificates ofparticipation indebtedness. Financing contract indebtedness incurred by theState under a plan of finance in which a special corporation obtains funds topay the cost of a capital facility to be financed through the delivery by thespecial corporation of certificates of participation.
(6) Cost. Any of thefollowing in financing the cost of capital facilities as authorized by thisArticle:
a. The cost ofconstructing, reconstructing, renovating, repairing, enlarging, acquiring, andimproving capital facilities, including the acquisition of land, rights‑of‑way,easements, franchises, equipment, machinery, furnishings, and other interestsin real or personal property acquired or used in connection with a capitalfacility.
b. The cost ofengineering, architectural, and other consulting services.
c. The cost ofproviding personnel to ensure effective management of capital facilities.
d. Finance charges,reserves for debt service, and other types of reserves required pursuant to theterms of any special indebtedness or related documents, interest before andduring construction or acquisition of a capital facility and, if consideredadvisable by the State Treasurer, for a period not exceeding two years afterthe estimated date of completion of construction or acquisition.
e. Administrativeexpenses and charges.
f. The cost of bondinsurance, investment contracts, credit enhancement facilities and liquidityfacilities, interest rate swap agreements or other derivative products,financial and legal consultants, and related costs of the incurrence orissuance of special indebtedness.
g. The cost ofreimbursing the State, a State agency, or a special corporation for anypayments made for any cost described in this subdivision.
h. Any other costs andexpenses necessary or incidental to the purposes of this Article.
(7) Credit facility. An agreement that:
a. Is entered into bythe State with a bank, savings and loan association, or other bankinginstitution, an insurance company, reinsurance company, surety company, orother insurance institution, a corporation, investment banking firm, or otherinvestment institution, or any financial institution or other similar providerof a credit facility, which provider may be located within or without theUnited States of America; and
b. Provides for promptpayment of all or any part of the principal or purchase price (whether atmaturity, presentment or tender for purchase, redemption, or acceleration),redemption premium, if any, and interest with respect to any specialindebtedness payable on demand or tender by the owner in consideration of theState's agreeing to repay the provider of the credit facility in accordancewith the terms and provisions of the agreement.
(8) Department ofAdministration. The North Carolina Department of Administration, created byArticle 36 of Chapter 143 of the General Statutes or, if the Department isabolished or otherwise divested of its functions under this Article, the publicbody succeeding it in its principal functions or upon which are conferred bylaw the rights, powers, and duties given by this Article to the Department.
(9) Financing contract. A contract entered into pursuant to this Article to finance capitalfacilities and constituting a lease‑purchase contract, installment‑purchasecontract, or other similar type installment financing contract. The term does notinclude, however, a contract that meets any one of the following conditions:
a. It constitutes anoperating lease under generally accepted accounting principles.
b. It provides for thepayment under the contract over its full term, including periods that may beadded to the original term through the exercise of options to renew or extend,of an aggregate principal amount of not in excess of five thousand dollars($5,000) or any greater amount that may be established by the Council of Stateif the Council of State determines (i) the aggregate amount to be paid underthese contracts will not have a significant impact on the State budgetaryprocess or the economy of the State and (ii) the change will lessen theadministrative burden on the State.
c. It is executed andprovides for the making of all payments under the contract, including paymentto be made during any period that may be added to the original term through theexercise of options to renew or extend, in the same fiscal year.
(10) Financing contractindebtedness. Indebtedness incurred pursuant to a financing contract,including certificates of participation indebtedness.
(11) Fiscal period. Afiscal biennium or a fiscal year of the fiscal biennium.
(12) Fiscal year. Thefiscal year of the State beginning on July 1 of one calendar year and ending onJune 30 of the next calendar year.
(13) Limited obligationbond. A limited obligation bond issued pursuant to G.S. 142‑88 andpayable and secured as provided in G.S. 142‑89.
(14) Par formula. A provisionor formula adopted by the State to provide for the adjustment, from time totime, of the interest rate or rates borne or provided for by any specialindebtedness, including any of the following:
a. A provisionproviding for an adjustment so that the purchase price of special indebtednessin the open market would be as close to par as possible.
b. A provisionproviding for an adjustment based upon a percentage or percentages of a primerate or base rate, which percentages may vary or be applied for differentperiods of time.
c. Any provision thatthe State Treasurer determines is consistent with this Article and will notmaterially and adversely affect the financial position of the State and themarketing of special indebtedness at a reasonable interest cost to the State.
(15) Person. Anindividual, a firm, a partnership, an association, a corporation, a limitedliability company, or any other organization or group acting as a unit.
(16) Special corporation. Either of the following:
a. A nonprofitcorporation created under Chapter 55A of the General Statutes for the purposeof facilitating the incurrence of certificates of participation indebtedness bythe State under this Article.
b. A privatecorporation or other entity issuing certificates of participation pursuant tothis Article.
(17) Special indebtedness. Financing contract indebtedness and bonded indebtedness issued or incurredpursuant to this Article.
(18) State. The State ofNorth Carolina, including any State agency.
(19) State agency. Anyagency, institution, board, commission, bureau, council, department, division,officer, or employee of the State. The term does not include counties,municipal corporations, political subdivisions, local boards of education, orother local public bodies.
(20) State Treasurer. The incumbent Treasurer, from time to time, of the State. (2003‑284, s. 46.2;2003‑314, s. 1; 2004‑203, s. 79.)