§ 159-89. Special covenants.
§ 159‑89. Special covenants.
A revenue bond order or a trust agreement securing revenue bonds may bebetween the State or the issuing municipality and a bank or trust companylocated within or without the State of North Carolina, and may containcovenants as to any of the following:
(1) The pledge of all or any part of revenues received or to bereceived from the undertaking to be financed by the bonds, or the utility orenterprise of which the undertaking is to become a part.
(2) Rates, fees, rentals, tolls or other charges to beestablished, maintained, and collected, and the use and disposal of revenues,gifts, grants, and funds received or to be received.
(3) The setting aside of debt service reserves and theregulation and disposition thereof.
(4) The custody, collection, securing, investment, and paymentof any moneys held for the payment of revenue bonds.
(5) Limitations or restrictions on the purposes to which theproceeds of sale of revenue bonds then or thereafter to be issued may beapplied.
(6) Limitations or restrictions on the issuance of additionalrevenue bonds or notes; the terms upon which additional revenue bonds or notesmay be issued and secured; or the refunding of outstanding or other revenuebonds.
(7) The procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the percentage of revenue bondsthe bondholders of which must consent thereto, and the manner in which suchconsent may be given.
(8) Events of default and the rights and liabilities arisingthereupon, the terms and conditions upon which revenue bonds issued under thisArticle shall become or may be declared due before maturity, and the terms andconditions upon which such declaration and its consequences may be waived.
(9) The preparation and maintenance of a budget with respect tothe expenses of the State or a municipality, as the case may be, for theoperation and maintenance of revenue bond projects.
(10) The retention or employment of consulting engineers,independent auditors, and other technical consultants in connection withrevenue bond projects.
(11) Limitations on or the prohibition of free service by revenuebond projects to any person, firm, or corporation, public or private.
(12) The acquisition and disposal of property for revenue bondprojects.
(13) Provisions for insurance and for accounting reports and theinspection and audit thereof.
(14) The continuing operation and maintenance of the revenue bondproject or the utility or enterprise of which it is to become a part. (Ex. Sess. 1938, c. 2, s. 6; 1971, c. 780, s. 1; 1983, c. 554, s. 10;2003‑388, s. 1.)