§ 159-47. Additional security for utility or public service enterprise bonds.
§ 159‑47. Additional security for utility or public service enterprise bonds.
(a) The revenues of a utility or public service enterprise ownedor leased by a unit of local government shall be applied in accordance with thefollowing priorities:
(1) First, to pay the operating, maintenance, and capital outlayexpenses of the utility or enterprise.
(2) Second, to pay when due the interest on and principal ofoutstanding bonds issued for capital projects that are or were a part of theutility or enterprise.
(3) Third, for any other lawful purpose.
Notwithstanding the foregoing provisions, a county which owns or leases hospitals or other health‑related facilities and has not issuedany general obligation bonds during the period July 1, 1973, to July 1, 1974, fora capital project that is or was a part of such hospitals or other health‑relatedfacilities shall have the option of applying the revenues of such hospitals orother health‑related facilities in accordance with a bond order adoptedunder the Local Government Revenue Bond Act.
(b) In the discretion of the governing board of the issuingunit, the bond order may pledge the revenues (or any portion of the revenues)of a utility or public service enterprise to the payment of the interest on andprincipal of bonds issued under this Article to finance capital projects thatare to become a part of the utility or enterprise.
(c) In the discretion of the governing board of the issuingunit, a bond order authorizing the issuance of bonds under this Article tofinance capital projects that are to become a part of a utility or publicservice enterprise owned or leased by the issuing unit may state that therevenues of the utility or enterprise may be pledged to the payment of theinterest on and principal of the bonds if and to the extent that the governingboard of the unit shall thereafter determine by resolution (prior to theissuance of the bonds), and that a tax sufficient to pay the principal of andinterest on the bonds shall be annually levied and collected by the issuingunit on all taxable property within its taxing jurisdiction, but that in theevent that any revenues of the utility or enterprise shall be pledged to thepayment of the bonds, the tax may be reduced by the amount of utility orenterprise revenues available for the payment of the principal and interest. Apledge of utility or enterprise revenues pursuant to this subsection shall bemade by resolution of the governing board of the issuing unit after the bondorder is adopted and before bonds are issued thereunder.
(d) When a pledge of utility or enterprise revenues is madepursuant to this section, the issuing unit shall have, with respect to theutility or enterprise whose revenues are pledged, all of the powers set out inG.S. 159‑83 and G.S. 159‑89. (1971, c. 780, s. 1; 1973, c. 1326.)