§ 159D-8. Approval of bonds.
§ 159D‑8. Approval of bonds.
(a) No bonds may be issued by the agency pursuant to thisArticle unless the issuance is first approved by the Local GovernmentCommission.
The agency shall file an application for approval of its proposed bondissue with the secretary of the Local Government Commission, and shall notifythe Secretary of the Department of Commerce of such filing.
(b) In determining whether a proposed bond issue should beapproved, the Local Government Commission may consider, without limitation, thefollowing:
(1) Whether the proposed operator and obligor have demonstratedor can demonstrate the financial responsibility and capability to fulfill theirobligations with respect to the financing agreement. In making suchdetermination, the commission may consider the operator's experience and theobligor's ratio of current assets to current liabilities, net worth, earningstrends and coverage of fixed charges, the nature of the industry or businessinvolved and its stability and any additional security such as creditenhancement, insurance, guaranties or property to be pledged or secure suchbonds.
(2) Whether the political subdivisions in or near which theproposed project is to be located have the ability to cope satisfactorily withthe impact of such project and to provide, or cause to be provided, the publicfacilities and services, including utilities, that will be necessary for suchproject and on account of any increase in population which are expected toresult therefrom.
(3) Whether the proposed date and manner of sale will have anadverse effect upon any scheduled or anticipated sale of obligations by theState or any political subdivision or any agency of either of them.
(c) To facilitate the review of the proposed bond issue by thecommission, the Secretary may require the agency to obtain and submit suchfinancial data and information about the proposed bond issue and the securitytherefor, including the proposed prospectus or offering circular, the proposedfinancing agreement and security document and annual and other financialreports and statements of the obligor, as the Secretary may prescribe. TheSecretary may also prescribe forms and rules that the Secretary considersreasonably necessary to implement the provisions of this section. (1977, 2nd Sess., c. 1198, s. 1; 1989, c. 751, s. 7(52); 1991 (Reg.Sess., 1992), c. 959, s. 83; 2000‑179, s. 2; 2002‑172, s. 5.3.)