(a) Security. Inorder to secure (i) lease or installment payments to be made to the lessor,seller, or other person advancing moneys or providing financing under afinancing contract, (ii) payment of the principal of and interest on bondedindebtedness, or (iii) payment obligations of the State to the provider of bondinsurance, a credit facility, a liquidity facility, or a derivative agreement,special indebtedness may create any combination of the following:
(1) A lien on orsecurity interest in one or more, all, or any part of the capital facilities tobe financed by the special indebtedness.
(2) If the specialindebtedness is to finance construction of improvements on real property, alien on or security interest in all or any part of the land on which theimprovements are to be located.
(3) If the specialindebtedness is to finance renovations or improvements to existing facilitiesor the installation of fixtures in existing facilities, a lien on or securityinterest in one or more, all, or any part of the facilities.
(b) Value of Security;Multiple Liens. The estimated value of the property subject to the lien orsecurity interest need not bear any particular relationship to the principalamount of the special indebtedness or other obligation it secures. This Articledoes not limit the right of the State to grant multiple liens or securityinterests in a capital facility or other property to the extent not otherwiselimited by the terms of any special indebtedness.
(c) Governor's Budget. Documentation relating to any special indebtedness may include provisionsrequesting the Governor to submit in the Governor's budget proposal or anyamendments or supplements to the budget proposed appropriations necessary tomake the payments required by the special indebtedness.
(d) Source ofRepayment. The payment of amounts payable by the State under specialindebtedness or any related documents during any fiscal period shall be limitedto funds appropriated for that purpose by the General Assembly in itsdiscretion.
(e) No DeficiencyJudgment or Pledge. No deficiency judgment may be rendered against the Statein any action for breach of any obligation under special indebtedness or anyrelated documents. The taxing power of the State is not and may not be pledgeddirectly or indirectly to secure any moneys due under special indebtedness orany related documents. In the event that the General Assembly does notappropriate sums sufficient to make payments required under any specialindebtedness or any related documents, the net proceeds received from the saleor other disposition of the property subject to the lien or security interestshall be applied to satisfy these payment obligations in accordance with thedeed of trust, security agreement, or other documentation relating to the lienor security interest. These net proceeds are appropriated for the purpose ofmaking these payments. Any net proceeds in excess of the amount required tosatisfy the obligations of the State under any special indebtedness or anyrelated documents shall be paid to the State Treasurer for deposit to theGeneral Fund.
(f) NonsubstitutionClause. A financing contract, issue of bonded indebtedness, or other relateddocument shall not contain a nonsubstitution clause that restricts the right ofthe State to (i) continue to provide a service or conduct an activity or (ii)replace or provide a substitute for any capital facility.
(g) Protection ofLender. Special indebtedness may contain any provisions for protecting andenforcing the rights and remedies of the person advancing moneys or providingfinancing under a financing contract, the owners of bonded indebtedness, orothers to whom the State is obligated under special indebtedness or any relateddocuments as may be reasonable and proper and not in violation of law. Theseprovisions may include covenants setting forth the duties of the State inrespect of any of the following:
(1) The purposes towhich the proceeds of special indebtedness may be applied.
(2) The disposition andapplication of the revenues of the State, including taxes.
(3) Insuring,maintaining, and other duties with respect to the capital facilities financed.
(4) The disposition ofany charges and collection of any revenues and administrative charges.
(5) The terms andconditions of the issuance of additional special indebtedness.
(6) The custody,safeguarding, investment, and application of all moneys.
(h) State Property LawException. Chapter 146 of the General Statutes does not apply to any transferof the State's interest in property authorized by this Article, whether to adeed of trust trustee or other secured party as security for specialindebtedness, or to a purchaser of property in connection with a foreclosure orsimilar conveyance of property to realize upon the security for specialindebtedness following the State's default on its obligations under the specialindebtedness. (2003‑284,s. 46.2; 2003‑314, s. 1; 2004-203, s. 79.)
(a) Security. Inorder to secure (i) lease or installment payments to be made to the lessor,seller, or other person advancing moneys or providing financing under afinancing contract, (ii) payment of the principal of and interest on bondedindebtedness, or (iii) payment obligations of the State to the provider of bondinsurance, a credit facility, a liquidity facility, or a derivative agreement,special indebtedness may create any combination of the following:
(1) A lien on orsecurity interest in one or more, all, or any part of the capital facilities tobe financed by the special indebtedness.
(2) If the specialindebtedness is to finance construction of improvements on real property, alien on or security interest in all or any part of the land on which theimprovements are to be located.
(3) If the specialindebtedness is to finance renovations or improvements to existing facilitiesor the installation of fixtures in existing facilities, a lien on or securityinterest in one or more, all, or any part of the facilities.
(b) Value of Security;Multiple Liens. The estimated value of the property subject to the lien orsecurity interest need not bear any particular relationship to the principalamount of the special indebtedness or other obligation it secures. This Articledoes not limit the right of the State to grant multiple liens or securityinterests in a capital facility or other property to the extent not otherwiselimited by the terms of any special indebtedness.
(c) Governor's Budget. Documentation relating to any special indebtedness may include provisionsrequesting the Governor to submit in the Governor's budget proposal or anyamendments or supplements to the budget proposed appropriations necessary tomake the payments required by the special indebtedness.
(d) Source ofRepayment. The payment of amounts payable by the State under specialindebtedness or any related documents during any fiscal period shall be limitedto funds appropriated for that purpose by the General Assembly in itsdiscretion.
(e) No DeficiencyJudgment or Pledge. No deficiency judgment may be rendered against the Statein any action for breach of any obligation under special indebtedness or anyrelated documents. The taxing power of the State is not and may not be pledgeddirectly or indirectly to secure any moneys due under special indebtedness orany related documents. In the event that the General Assembly does notappropriate sums sufficient to make payments required under any specialindebtedness or any related documents, the net proceeds received from the saleor other disposition of the property subject to the lien or security interestshall be applied to satisfy these payment obligations in accordance with thedeed of trust, security agreement, or other documentation relating to the lienor security interest. These net proceeds are appropriated for the purpose ofmaking these payments. Any net proceeds in excess of the amount required tosatisfy the obligations of the State under any special indebtedness or anyrelated documents shall be paid to the State Treasurer for deposit to theGeneral Fund.
(f) NonsubstitutionClause. A financing contract, issue of bonded indebtedness, or other relateddocument shall not contain a nonsubstitution clause that restricts the right ofthe State to (i) continue to provide a service or conduct an activity or (ii)replace or provide a substitute for any capital facility.
(g) Protection ofLender. Special indebtedness may contain any provisions for protecting andenforcing the rights and remedies of the person advancing moneys or providingfinancing under a financing contract, the owners of bonded indebtedness, orothers to whom the State is obligated under special indebtedness or any relateddocuments as may be reasonable and proper and not in violation of law. Theseprovisions may include covenants setting forth the duties of the State inrespect of any of the following:
(1) The purposes towhich the proceeds of special indebtedness may be applied.
(2) The disposition andapplication of the revenues of the State, including taxes.
(3) Insuring,maintaining, and other duties with respect to the capital facilities financed.
(4) The disposition ofany charges and collection of any revenues and administrative charges.
(5) The terms andconditions of the issuance of additional special indebtedness.
(6) The custody,safeguarding, investment, and application of all moneys.
(h) State Property LawException. Chapter 146 of the General Statutes does not apply to any transferof the State's interest in property authorized by this Article, whether to adeed of trust trustee or other secured party as security for specialindebtedness, or to a purchaser of property in connection with a foreclosure orsimilar conveyance of property to realize upon the security for specialindebtedness following the State's default on its obligations under the specialindebtedness. (2003‑284,s. 46.2; 2003‑314, s. 1; 2004-203, s. 79.)
(a) Security. Inorder to secure (i) lease or installment payments to be made to the lessor,seller, or other person advancing moneys or providing financing under afinancing contract, (ii) payment of the principal of and interest on bondedindebtedness, or (iii) payment obligations of the State to the provider of bondinsurance, a credit facility, a liquidity facility, or a derivative agreement,special indebtedness may create any combination of the following:
(1) A lien on orsecurity interest in one or more, all, or any part of the capital facilities tobe financed by the special indebtedness.
(2) If the specialindebtedness is to finance construction of improvements on real property, alien on or security interest in all or any part of the land on which theimprovements are to be located.
(3) If the specialindebtedness is to finance renovations or improvements to existing facilitiesor the installation of fixtures in existing facilities, a lien on or securityinterest in one or more, all, or any part of the facilities.
(b) Value of Security;Multiple Liens. The estimated value of the property subject to the lien orsecurity interest need not bear any particular relationship to the principalamount of the special indebtedness or other obligation it secures. This Articledoes not limit the right of the State to grant multiple liens or securityinterests in a capital facility or other property to the extent not otherwiselimited by the terms of any special indebtedness.
(c) Governor's Budget. Documentation relating to any special indebtedness may include provisionsrequesting the Governor to submit in the Governor's budget proposal or anyamendments or supplements to the budget proposed appropriations necessary tomake the payments required by the special indebtedness.
(d) Source ofRepayment. The payment of amounts payable by the State under specialindebtedness or any related documents during any fiscal period shall be limitedto funds appropriated for that purpose by the General Assembly in itsdiscretion.
(e) No DeficiencyJudgment or Pledge. No deficiency judgment may be rendered against the Statein any action for breach of any obligation under special indebtedness or anyrelated documents. The taxing power of the State is not and may not be pledgeddirectly or indirectly to secure any moneys due under special indebtedness orany related documents. In the event that the General Assembly does notappropriate sums sufficient to make payments required under any specialindebtedness or any related documents, the net proceeds received from the saleor other disposition of the property subject to the lien or security interestshall be applied to satisfy these payment obligations in accordance with thedeed of trust, security agreement, or other documentation relating to the lienor security interest. These net proceeds are appropriated for the purpose ofmaking these payments. Any net proceeds in excess of the amount required tosatisfy the obligations of the State under any special indebtedness or anyrelated documents shall be paid to the State Treasurer for deposit to theGeneral Fund.
(f) NonsubstitutionClause. A financing contract, issue of bonded indebtedness, or other relateddocument shall not contain a nonsubstitution clause that restricts the right ofthe State to (i) continue to provide a service or conduct an activity or (ii)replace or provide a substitute for any capital facility.
(g) Protection ofLender. Special indebtedness may contain any provisions for protecting andenforcing the rights and remedies of the person advancing moneys or providingfinancing under a financing contract, the owners of bonded indebtedness, orothers to whom the State is obligated under special indebtedness or any relateddocuments as may be reasonable and proper and not in violation of law. Theseprovisions may include covenants setting forth the duties of the State inrespect of any of the following:
(1) The purposes towhich the proceeds of special indebtedness may be applied.
(2) The disposition andapplication of the revenues of the State, including taxes.
(3) Insuring,maintaining, and other duties with respect to the capital facilities financed.
(4) The disposition ofany charges and collection of any revenues and administrative charges.
(5) The terms andconditions of the issuance of additional special indebtedness.
(6) The custody,safeguarding, investment, and application of all moneys.
(h) State Property LawException. Chapter 146 of the General Statutes does not apply to any transferof the State's interest in property authorized by this Article, whether to adeed of trust trustee or other secured party as security for specialindebtedness, or to a purchaser of property in connection with a foreclosure orsimilar conveyance of property to realize upon the security for specialindebtedness following the State's default on its obligations under the specialindebtedness. (2003‑284,s. 46.2; 2003‑314, s. 1; 2004-203, s. 79.)
