§ 159-110. Security of project development financing debt instruments.
§ 159‑110. Security ofproject development financing debt instruments.
Project development financingdebt instruments are special obligations of the issuing unit. Moneys in theRevenue Increment Fund required by G.S. 159‑107(c) are pledged to thepayment of the instruments, in accordance with G.S. 159‑107(f). Except asprovided in G.S. 159‑111, the unit may pledge the following additionalsources of funds to the payment of the debt instruments, and no other sources:the proceeds from the sale of property in the development financing district;net revenues from any public facilities, other than portions of public utilitysystems, in the development financing district financed with the proceeds ofthe project development financing debt instruments; and, subject to G.S. 159‑47,net revenues from any other public facilities, other than portions of publicutility systems, in the development financing district constructed or improvedpursuant to the development financing plan.
Except as provided in G.S. 159‑111,the principal and interest on project development financing debt instruments donot constitute a legal or equitable pledge, charge, lien, or encumbrance uponany of the unit's property or upon any of its income, receipts, or revenues,except as may be provided pursuant to this section. Except as provided in G.S.159‑107 and G.S. 159‑111, neither the credit nor the taxing powerof the unit is pledged for the payment of the principal or interest of projectdevelopment financing debt instruments, and no holder of project developmentfinancing debt instruments has the right to compel the exercise of the taxingpower by the unit or the forfeiture of any of its property in connection withany default on the instruments. Unless the unit's taxing power has been pledgedpursuant to G.S. 159‑111, every project development financing debtinstrument shall contain recitals sufficient to show the limited nature of thesecurity for the instrument's payment and that it is not secured by the fullfaith and credit of the unit. (2003‑403, s. 2.)