§ 159C-6. Bonds.
§ 159C‑6. Bonds.
(a) Each authority isauthorized to provide for the issuance, at one time or from time to time, ofbonds of the authority for the purpose of paying all or any part of the cost ofany project. The principal of, the interest on and any premium payable upon theredemption of the bonds shall be payable solely from the funds authorized inthis Article for their payment. The bonds of each issue shall bear interest asmay be determined by the Local Government Commission with the approval of the authorityand the obligor irrespective of the limitations of G.S. 24‑1.1, asamended, and successor provisions. The bonds of each issue shall be dated,shall mature at any time or times not exceeding 35 years after the date oftheir issuance, and may be made redeemable before maturity at any price orprices and under any terms and conditions, as may be fixed by the authoritybefore the issuance of the bonds. The authority shall determine the form andthe manner of execution of the bonds, including any interest coupons to beattached to them, and shall fix the denomination or denominations of the bondsand the place or places of payment of principal and interest. In case anyofficer whose signature or a facsimile of whose signature appears on any bondsor coupons ceases to be that officer before the delivery of the bonds, thesignature or the facsimile shall nevertheless be valid and sufficient for allpurposes the same as if the officer had remained in office until the delivery.The authority may also provide for the authentication of the bonds by a trusteeor fiscal agent. The bonds may be issued in coupon or in fully registered form,or both, as the authority may determine, and provision may be made for theregistration of any coupon bonds as to principal alone and also as to bothprincipal and interest, and for the reconversion into coupon bonds of any bondsregistered as to both principal and interest, and for the interchange ofregistered and coupon bonds.
(a1) A county or citythat receives an allocation to issue recovery zone facility bonds within themeaning of the American Recovery and Reinvestment Tax Act of 2009 to financerecovery zone property may designate any authority as the governmental entityauthorized to issue recovery zone facility bonds.
(b) The proceeds of thebonds of each issue shall be used solely for the payment of the cost of all orpart of the project for which the bonds were issued, and shall be disbursed inany manner and under any restrictions, as the authority may provide in the financingagreement and the security document. If the proceeds of the bonds of any issue,by reason of increased construction costs or error in estimates or otherwise,are less than this cost, additional bonds may in like manner be issued toprovide the amount of the deficiency.
(c) The proceeds ofbonds shall not be used to refinance the cost of an industrial project or apollution control project. For the purposes of this section, a cost of anindustrial project or a pollution control project is considered refinanced ifboth of the following conditions are met:
(1) The cost isinitially paid from sources other than bond proceeds, and the originalexpenditure is to be reimbursed from bond proceeds.
(2) The originalexpenditure was paid more than 60 days before the authority took some actionindicating its intent that the expenditure would be financed or reimbursed frombond proceeds.
(d) Notwithstandingsubsection (c) of this section, preliminary expenditures that are incurredprior to the commencement of the acquisition, construction, or rehabilitationof an industrial project or a pollution control project, such as architecturalcosts, engineering costs, surveying costs, soil testing costs, bond issuancecosts, and other similar costs, may be reimbursed from bond proceeds even ifthese costs are incurred or paid more than 60 days prior to the authority'saction. This exception that allows preliminary expenditures to be reimbursedfrom bond proceeds, regardless of whether or not they are incurred or paid within60 days of the authority's action, does not include costs that are incurredincident to the commencement of the construction of an industrial project or apollution control project, such as expenditures for land acquisition and sitepreparation. In any event, an expenditure in connection with an industrialproject or a pollution control project originally paid before the authoritytook some action indicating its intent that the expenditures would be financedor reimbursed from bond proceeds may be reimbursed from bond proceeds only ifthe authority finds that reimbursing those costs from bond proceeds willpromote the purposes of this Chapter.
(e) An authority maymake loans to an obligor to refund outstanding loans, obligations, deeds oftrust, or advances issued, made, or given by the obligor for the cost of aspecial purpose project.
(f) The authority mayissue interim receipts or temporary bonds, with or without coupons,exchangeable for definitive bonds when the bonds have been executed and areavailable for delivery. The authority may also provide for the replacement ofany bonds that become mutilated or are destroyed or lost.
(g) Bonds may be issuedunder the provisions of this Chapter without obtaining, except as otherwiseexpressly provided in this Chapter, the consent of the State or of anypolitical subdivision or of any agency of either, and without any otherproceedings or the happening of any conditions or things other than thoseproceedings, conditions, or things that are specifically required by thisChapter and the provisions of the financing agreement and security documentauthorizing the issuance of the bonds and securing the bonds. (1975, c. 800, s. 1; 1979,c. 109, s. 1; 1997‑111, s. 1; 1997‑463, s. 1; 2000‑179, s. 5;2009‑140, s. 7.)