§ 159‑123. Sale ofbonds by sealed bids; private sales.
(a) Bonds issued byunits of local government shall be sold by the Local Government Commissionafter advertisement and upon sealed bids, except as otherwise authorized bysubsection (b) of this section.
(b) The followingclasses of bonds may be sold at private sale:
(1) Bonds that a Stateor federal agency has previously agreed to purchase.
(2) Any bonds for whichno legal bid is received within the time allowed for submission of bids.
(3) Revenue bonds,including any refunding bonds issued pursuant to G.S. 159‑84, and specialobligation bonds issued pursuant to Chapter 159I of the General Statutes.
(4) Refunding bondsissued pursuant to G.S. 159‑78.
(5) Refunding bondsissued pursuant to G.S. 159‑72 if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(6) Bonds the ownershipof which results in a tax credit to the owners thereof pursuant to theprovisions of the federal income tax laws if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(8) General obligationbonds issued pursuant to the Local Government Bond Act that have been rated by anationally recognized credit rating agency at a credit rating below"AA" (or comparable category if stated differently) or that areunrated and that are not described in subdivisions (1) through (7) of thissubsection that are sold prior to December 31, 2010.
(9) Bonds that are partof an issue in which the interest payments on some or all of the bonds isintended to be subsidized by payments from the federal government pursuant tothe provisions of the federal tax laws, if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(c) When the issuingunit wishes to have a private sale of bonds, the governing board of the issuingunit shall adopt and file with the Commission a resolution requesting that thebonds be sold at private sale without advertisement to any purchaser orpurchasers thereof, at such prices as the Commission determines to be in thebest interest of the issuing unit, subject to the approval of the governingboard of the issuing unit or one or more persons designated by resolution ofthe governing board of the issuing unit to approve such prices. Upon receipt ofa resolution requesting a private sale of bonds, the Commission may offer themto any purchaser or purchasers without advertisement, and may sell them at anyprice the Commission deems in the best interest of the issuing unit, subject tothe approval of the governing board of the issuing unit or the person orpersons designated by resolution of the governing board of the issuing unit toapprove such prices. For purposes of this subsection, any resolution of thegoverning board of the issuing unit which designates a person or persons toapprove any price or prices shall also establish a minimum purchase price and amaximum interest rate or maximum interest cost and such other provisionsrelating to approval as it may determine. Notwithstanding any provisions ofthis Chapter to the contrary, general obligation bonds issued pursuant toArticle 4 of this Chapter may be sold at private sale at not less than ninety‑eightpercent (98%) of the face value of the bonds plus one hundred percent (100%) ofaccrued interest.
(d) This section shallnot apply to funding or refunding bonds when the governing board of the issuingunit and the holders of the debt to be funded or refunded have agreed toexchange the original obligations for new ones at the same or an adjusted rateof interest. This section also shall not apply to debt instruments that theState has previously agreed to purchase pursuant to Chapter 159G of the GeneralStatutes.
(e) The issuing unitshall have the authority, subject to approval by the Commission, to select andretain the financial consultants, underwriters and bond attorneys to beassociated with the bond issue. If the issuing unit shall affirmatively findthat the underwriter, financial consultant or bond attorney selected andretained has adequately provided, in similar financial transactions, servicesof a nature and sophistication comparable to those required for the issuanceand sale of the bonds in question and possesses the expertise necessary toperform the services required, approval of a financial consultant, underwriteror bond attorney shall not be withheld by the Commission solely for the reasonthat the underwriter, financial consultant or bond attorney has not had priorexperience in the issuance and sale of a particular type, class or size of bondissue for which the underwriter, financial consultant or bond attorney isretained.
(f) The Commissionshall not reject an application for approval of a bond issue because of theissuing units' selection of financial consultants, underwriters or bondattorneys so long as the selection is made in accordance with G.S. 159‑123(e).Nothing herein shall limit or otherwise modify the role or powers of theCommission and its staff to review, approve, sell or participate in the sale ofbonds pursuant to this Article. (1931, c. 60, ss. 17, 19; c. 296, s. 1; 1933, c. 258,s. 1; 1969, c. 943; 1971, c. 780, s. 1; 1977, c. 201, s. 4; 1985, c. 723, s. 1;1987, c. 585, s. 3; c. 796, s. 4; 1989, c. 756, s. 5; 1991 (Reg. Sess., 1992),c. 1007, s. 43; 2000‑69, s. 2; 2003‑403, s. 8; 2009‑140, s.5.)
§ 159‑123. Sale ofbonds by sealed bids; private sales.
(a) Bonds issued byunits of local government shall be sold by the Local Government Commissionafter advertisement and upon sealed bids, except as otherwise authorized bysubsection (b) of this section.
(b) The followingclasses of bonds may be sold at private sale:
(1) Bonds that a Stateor federal agency has previously agreed to purchase.
(2) Any bonds for whichno legal bid is received within the time allowed for submission of bids.
(3) Revenue bonds,including any refunding bonds issued pursuant to G.S. 159‑84, and specialobligation bonds issued pursuant to Chapter 159I of the General Statutes.
(4) Refunding bondsissued pursuant to G.S. 159‑78.
(5) Refunding bondsissued pursuant to G.S. 159‑72 if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(6) Bonds the ownershipof which results in a tax credit to the owners thereof pursuant to theprovisions of the federal income tax laws if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(8) General obligationbonds issued pursuant to the Local Government Bond Act that have been rated by anationally recognized credit rating agency at a credit rating below"AA" (or comparable category if stated differently) or that areunrated and that are not described in subdivisions (1) through (7) of thissubsection that are sold prior to December 31, 2010.
(9) Bonds that are partof an issue in which the interest payments on some or all of the bonds isintended to be subsidized by payments from the federal government pursuant tothe provisions of the federal tax laws, if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(c) When the issuingunit wishes to have a private sale of bonds, the governing board of the issuingunit shall adopt and file with the Commission a resolution requesting that thebonds be sold at private sale without advertisement to any purchaser orpurchasers thereof, at such prices as the Commission determines to be in thebest interest of the issuing unit, subject to the approval of the governingboard of the issuing unit or one or more persons designated by resolution ofthe governing board of the issuing unit to approve such prices. Upon receipt ofa resolution requesting a private sale of bonds, the Commission may offer themto any purchaser or purchasers without advertisement, and may sell them at anyprice the Commission deems in the best interest of the issuing unit, subject tothe approval of the governing board of the issuing unit or the person orpersons designated by resolution of the governing board of the issuing unit toapprove such prices. For purposes of this subsection, any resolution of thegoverning board of the issuing unit which designates a person or persons toapprove any price or prices shall also establish a minimum purchase price and amaximum interest rate or maximum interest cost and such other provisionsrelating to approval as it may determine. Notwithstanding any provisions ofthis Chapter to the contrary, general obligation bonds issued pursuant toArticle 4 of this Chapter may be sold at private sale at not less than ninety‑eightpercent (98%) of the face value of the bonds plus one hundred percent (100%) ofaccrued interest.
(d) This section shallnot apply to funding or refunding bonds when the governing board of the issuingunit and the holders of the debt to be funded or refunded have agreed toexchange the original obligations for new ones at the same or an adjusted rateof interest. This section also shall not apply to debt instruments that theState has previously agreed to purchase pursuant to Chapter 159G of the GeneralStatutes.
(e) The issuing unitshall have the authority, subject to approval by the Commission, to select andretain the financial consultants, underwriters and bond attorneys to beassociated with the bond issue. If the issuing unit shall affirmatively findthat the underwriter, financial consultant or bond attorney selected andretained has adequately provided, in similar financial transactions, servicesof a nature and sophistication comparable to those required for the issuanceand sale of the bonds in question and possesses the expertise necessary toperform the services required, approval of a financial consultant, underwriteror bond attorney shall not be withheld by the Commission solely for the reasonthat the underwriter, financial consultant or bond attorney has not had priorexperience in the issuance and sale of a particular type, class or size of bondissue for which the underwriter, financial consultant or bond attorney isretained.
(f) The Commissionshall not reject an application for approval of a bond issue because of theissuing units' selection of financial consultants, underwriters or bondattorneys so long as the selection is made in accordance with G.S. 159‑123(e).Nothing herein shall limit or otherwise modify the role or powers of theCommission and its staff to review, approve, sell or participate in the sale ofbonds pursuant to this Article. (1931, c. 60, ss. 17, 19; c. 296, s. 1; 1933, c. 258,s. 1; 1969, c. 943; 1971, c. 780, s. 1; 1977, c. 201, s. 4; 1985, c. 723, s. 1;1987, c. 585, s. 3; c. 796, s. 4; 1989, c. 756, s. 5; 1991 (Reg. Sess., 1992),c. 1007, s. 43; 2000‑69, s. 2; 2003‑403, s. 8; 2009‑140, s.5.)
§ 159‑123. Sale ofbonds by sealed bids; private sales.
(a) Bonds issued byunits of local government shall be sold by the Local Government Commissionafter advertisement and upon sealed bids, except as otherwise authorized bysubsection (b) of this section.
(b) The followingclasses of bonds may be sold at private sale:
(1) Bonds that a Stateor federal agency has previously agreed to purchase.
(2) Any bonds for whichno legal bid is received within the time allowed for submission of bids.
(3) Revenue bonds,including any refunding bonds issued pursuant to G.S. 159‑84, and specialobligation bonds issued pursuant to Chapter 159I of the General Statutes.
(4) Refunding bondsissued pursuant to G.S. 159‑78.
(5) Refunding bondsissued pursuant to G.S. 159‑72 if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(6) Bonds the ownershipof which results in a tax credit to the owners thereof pursuant to theprovisions of the federal income tax laws if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(8) General obligationbonds issued pursuant to the Local Government Bond Act that have been rated by anationally recognized credit rating agency at a credit rating below"AA" (or comparable category if stated differently) or that areunrated and that are not described in subdivisions (1) through (7) of thissubsection that are sold prior to December 31, 2010.
(9) Bonds that are partof an issue in which the interest payments on some or all of the bonds isintended to be subsidized by payments from the federal government pursuant tothe provisions of the federal tax laws, if the Local Government Commissiondetermines that a private sale is in the best interest of the issuing unit.
(c) When the issuingunit wishes to have a private sale of bonds, the governing board of the issuingunit shall adopt and file with the Commission a resolution requesting that thebonds be sold at private sale without advertisement to any purchaser orpurchasers thereof, at such prices as the Commission determines to be in thebest interest of the issuing unit, subject to the approval of the governingboard of the issuing unit or one or more persons designated by resolution ofthe governing board of the issuing unit to approve such prices. Upon receipt ofa resolution requesting a private sale of bonds, the Commission may offer themto any purchaser or purchasers without advertisement, and may sell them at anyprice the Commission deems in the best interest of the issuing unit, subject tothe approval of the governing board of the issuing unit or the person orpersons designated by resolution of the governing board of the issuing unit toapprove such prices. For purposes of this subsection, any resolution of thegoverning board of the issuing unit which designates a person or persons toapprove any price or prices shall also establish a minimum purchase price and amaximum interest rate or maximum interest cost and such other provisionsrelating to approval as it may determine. Notwithstanding any provisions ofthis Chapter to the contrary, general obligation bonds issued pursuant toArticle 4 of this Chapter may be sold at private sale at not less than ninety‑eightpercent (98%) of the face value of the bonds plus one hundred percent (100%) ofaccrued interest.
(d) This section shallnot apply to funding or refunding bonds when the governing board of the issuingunit and the holders of the debt to be funded or refunded have agreed toexchange the original obligations for new ones at the same or an adjusted rateof interest. This section also shall not apply to debt instruments that theState has previously agreed to purchase pursuant to Chapter 159G of the GeneralStatutes.
(e) The issuing unitshall have the authority, subject to approval by the Commission, to select andretain the financial consultants, underwriters and bond attorneys to beassociated with the bond issue. If the issuing unit shall affirmatively findthat the underwriter, financial consultant or bond attorney selected andretained has adequately provided, in similar financial transactions, servicesof a nature and sophistication comparable to those required for the issuanceand sale of the bonds in question and possesses the expertise necessary toperform the services required, approval of a financial consultant, underwriteror bond attorney shall not be withheld by the Commission solely for the reasonthat the underwriter, financial consultant or bond attorney has not had priorexperience in the issuance and sale of a particular type, class or size of bondissue for which the underwriter, financial consultant or bond attorney isretained.
(f) The Commissionshall not reject an application for approval of a bond issue because of theissuing units' selection of financial consultants, underwriters or bondattorneys so long as the selection is made in accordance with G.S. 159‑123(e).Nothing herein shall limit or otherwise modify the role or powers of theCommission and its staff to review, approve, sell or participate in the sale ofbonds pursuant to this Article. (1931, c. 60, ss. 17, 19; c. 296, s. 1; 1933, c. 258,s. 1; 1969, c. 943; 1971, c. 780, s. 1; 1977, c. 201, s. 4; 1985, c. 723, s. 1;1987, c. 585, s. 3; c. 796, s. 4; 1989, c. 756, s. 5; 1991 (Reg. Sess., 1992),c. 1007, s. 43; 2000‑69, s. 2; 2003‑403, s. 8; 2009‑140, s.5.)
