§ 159I-12. Units of local government authorized to borrow money from the Agency by loans.
§ 159I‑12. Unitsof local government authorized to borrow money from the Agency by loans.
(a) Any unit of local government determined by the Agency to beeligible pursuant to G.S. 159I‑10 may borrow money from the Agency forthe purpose of financing or refinancing the cost of the acquisition orconstruction of a project by a unit. The unit shall enter into a loanagreement with the Agency. The loan agreement shall set forth the terms andconditions of the loan, including the terms and conditions described in G.S.159I‑6(b), as determined and approved by the governing body of the unit.
(b) The obligation of a unit of local government under any loanagreement entered into with the Agency pursuant to this section shall bepayable and otherwise secured as provided in G.S. 159I‑13.
(c) In connection with entering into a loan obligation, any unitof local government may enter into a credit facility, as defined in G.S. 159I‑13(g),and the obligation of a unit of local government under the credit facility torepay any drawing thereunder may be made payable and otherwise secured, to theextent applicable, as provided in G.S. 159I‑13.
(d) The Agency or a unit of local government may propose anamendment, including an amendment restructuring or otherwise relating to theprincipal repayment schedule and the interest payment schedule set forth insuch loan agreement, upon a determination by the Agency that such amendment is:
(1) Consistent with the then existing financial condition of theunit of local government and its ability to meet its agreement under the loanagreement; and
(2) Consistent with the then existing financial condition of theAgency and the administration of the Agency's duties and responsibilities underthis Chapter.
Nothing in this Chapter shall be deemed as restricting the power of theAgency or the unit of local government to agree to any amendment to a loanagreement.
(e) No loan agreement or amendment to a loan agreement maybecome effective without the approval of the Local Government Commission. Indetermining whether a loan agreement or any amendment thereto should beapproved, the Local Government Commission may consider, to the extentapplicable as shall be determined by the Local Government Commission, thecriteria set forth in G.S. 159‑52 and G.S. 159‑86. The LocalGovernment Commission shall approve any such loan agreement, or any amendmentthereto, if, upon the information and evidence it receives, it finds anddetermines that such loan agreement, or amendment thereto, will satisfy itscriteria and is consistent with the purposes of this Chapter. Afterconsidering a loan agreement or an amendment thereto, the Local GovernmentCommission shall enter its order either approving or disapproving suchagreement or amendment. An order of approval may not be regarded as anapproval of the legality of such agreement or amendment. The order of theLocal Government Commission disapproving such agreement or amendment is final. (1989, c. 756, s. 1.)