(a) Terms. An Authority may provide for the issuance, at onetime or from time to time, of bonds or notes to carry out its corporatepurposes. The principal of, the interest on, and any premium payable upon theredemption of the bonds or notes shall be payable from the proceeds of bonds orrenewal notes, or, in the event bond or renewal note proceeds are notavailable, from any available revenues or other funds provided for thispurpose. The bonds or notes of each issue shall be dated and may be maderedeemable prior to maturity at the option of the Authority or otherwise, atone or more prices, on one or more dates, and upon the terms and conditions setby the Authority. The bonds or notes may also be made payable from time to timeon demand or tender for purchase by the owner upon terms and conditions set bythe Authority. Notes and bonds shall mature at times determined by theAuthority, not exceeding 40 years from the date of issue. The Authority shalldetermine the form and the manner of execution of the bonds or notes, and shallfix the denomination of the bonds or notes and the place of payment ofprincipal and interest. In case an officer whose signature or a facsimile ofwhose signature appears on any bonds or notes ceases to be an officer beforethe delivery of the bond or note, the signature or facsimile shall neverthelessbe valid and sufficient for all purposes the same as if the officer hadremained in office until delivery. The Authority may also provide for theauthentication of the bonds or notes by a trustee or fiscal agent.
Bonds or notes may be issued under this Part without obtaining, exceptas otherwise expressly provided in this Part, the consent of any department,division, commission, board, body, bureau, or other agency of the State or of apolitical subdivision of the State, and without any other proceedings orconditions except as specifically required by this Part or the provisions ofthe resolution authorizing the issuance of, or any trust agreement securing, thebonds or notes.
Prior to the preparation of definitive bonds, the Authority may issueinterim receipts or temporary bonds exchangeable for definitive bonds when thebonds have been executed and are available for delivery. The Authority may alsoprovide for the replacement of any bonds or notes which have been mutilated,destroyed, or lost.
(b) Use of Proceeds. The proceeds of a bond or note shall beused solely for the purposes for which the bond or note was issued and shall bedisbursed in accordance with the resolution authorizing the issuance of a bondor note and with any trust agreement securing the bond or note. If the proceedsof a bond or note of any issue, by reason of increased construction costs orerror in estimates or otherwise, is less than the cost, additional bonds ornotes may in like manner be issued to provide the amount of the deficiency.
(c) Security. Bonds or notes issued by an Authority may besecured in one or more of the following ways:
(1) By the revenues of the regional facility.
(2) By security interests in real or personal property orinterest therein, including a leasehold interest, acquired with the proceeds ofthe bonds or notes or improved with the proceeds of the bonds or notes asdescribed in subsection (e) of this section.
(3) With the approval of the county levying the tax, byreceipts, if any, from a room occupancy and prepared food and beverage taxlevied by a county and distributed to the Authority; provided, however, thatany agreement or undertaking by a county to distribute receipts, if any, fromthe tax to the Authority may not obligate the county to exercise any power oftaxation, or restrict the ability of the county to repeal the tax. However, noaction by a county to discontinue, decrease, or repeal a room occupancy taxshall become effective while previously issued bonds or notes secured byreceipts from such a tax allocated to an authority by the county remainoutstanding.
Thesecurity for the bonds or notes shall be specified in the resolution or trustinstrument authorizing the bonds or notes.
(d) Revenues. The Authority may pledge to the payment of itsrevenue bonds or notes the revenues from the regional facility, includingrevenues from improvements, betterments, or extensions to the facility. The Authoritymay establish, maintain, revise, charge, and collect such rates, fees, rentals,or other charges for the use, services, and facilities of or furnished by aregional facility and provide methods of collection of and penalties fornonpayment of these rates, fees, rentals, or other charges. Except as otherwisepermitted, the rates, fees, rentals, and charges fixed and charged shall be inan amount that will produce sufficient revenues, with any other availablefunds, to meet the maintenance and operation expenses of the regional facilityas well as any improvements and renewals and replacements to the facility,including reserves to pay the principal, interest, and redemption premium due,if any, on any bonds or notes secured by the facility, and to fulfill the termsof any agreements made by the Authority with the holders of bonds or notessecured by revenues of the facility.
(e) Security Interests. Bonds or notes may be secured bysecurity interests in any real or personal property or interest therein,including a leasehold interest, either acquired with the proceeds of bonds ornotes, or upon which improvements are provided from the proceeds of bonds ornotes. The security interest may cover all real and personal property acquiredor improved or any portion of the property, except that if the property subjectto the security interest is a leasehold interest, the security interest is notto the fee simple title. The Authority is authorized to enter into deeds oftrust, mortgages, security agreements, and similar instruments as shall benecessary to carry out the powers in this subsection. Bonds or notes may alsobe secured by security interests in any real or personal property conveyed tothe Authority.
In the event the Authority fails to perform its obligations withrespect to the bonds or notes and foreclosure or similar sale of propertysubject to a security interest occurs, a deficiency judgment may not berendered against the Authority except to the extent that the deficiency ispayable from either revenues from the regional facility or from any revenuesdedicated by act of the General Assembly to the Authority.
(f) Issuance. The issuance of bonds or notes of the Authorityis subject to the approval of the Local Government Commission. Upon the filingwith the Local Government Commission of a resolution of the Authorityrequesting that its bonds or notes be sold, the Commission shall determine themanner in which the bonds or notes will be sold and the price or prices atwhich the bonds or notes will be sold. In determining whether to approve aproposed bond or note issue of the Authority, the Local Government Commissionshall consider the criteria for approval of revenue bonds under G.S. 159‑86.The Local Government Commission shall approve the proposed issue if itdetermines the bond or note issue will meet such criteria and will effect thepurposes of this Part. With the approval of the Authority, the Local GovernmentCommission shall sell the bonds or notes either at public or private sale inthe manner and at the prices determined to be in the best interests of theAuthority and to effect the purposes of this Part.
(g) Certification of Approval. Each bond or note that isrepresented by an instrument shall contain a statement signed by the Secretaryof the Local Government Commission, or an assistant designated by theSecretary, certifying that the issuance of the bond or note has been approvedunder this Part. The signature may be a manual signature or a facsimilesignature, as determined by the Local Government Commission. Each bond or notethat is not represented by an instrument shall be evidenced by a writingrelating to the obligation that identifies the obligation or the issue of whichit is a part, contains the signed statement certifying approval of the LocalGovernment Commission that is required on an instrument, and is filed with theLocal Government Commission. A certification of approval by the LocalGovernment Commission is conclusive evidence that a bond or note complies withthis Part.
(h) State Pledge. The State pledges to the holder of a bond ornote issued under this Part that, as long as the bond or note is outstandingand unpaid, the State will not limit or alter the power the Authority had whenthe bond or note was issued in a way that impairs the ability of the Authorityto produce revenues sufficient with other available funds to do all of thefollowing:
(1) Maintain and operate the facility for which the bond or notewas issued.
(2) Pay the principal of, interest on, and redemption premium,if any, of the bond or note.
(3) Fulfill the terms of an agreement with the holder.
The State further pledges to the holder of a bond or note issued underthis Part that the State will not impair the rights and remedies of the holderconcerning the bond or note.
(i) Investment Securities. All bonds and notes and interestcoupons, if any, issued under this Part are made investment securities withinthe meaning of and for all the purposes of Article 8 of the Uniform CommercialCode, as enacted in Chapter 25 of the General Statutes.
(j) Details of Bonds or Notes. In fixing the details of bondsor notes, the Authority may provide that the bonds or notes may:
(1) Be payable from time to time on demand or tender forpurchase by the owner of the bond or note if a credit facility supports thebond or note, unless the Local Government Commission specifically determinesthat a credit facility is not required because the absence of a credit facilitywill not materially and adversely affect the financial position of theAuthority and the marketing of the bonds or notes at a reasonable interest costto the Authority.
(2) Be additionally supported by a credit facility.
(3) Be made subject to redemption or a mandatory tender forpurchase prior to maturity.
(4) Be capital appreciation bonds.
(5) Bear interest at a rate or rates that may vary, includingvariations permitted pursuant to a par formula.
(6) Be made the subject of a remarketing agreement whereby anattempt is made to remarket the bonds or notes to new purchasers prior to theirpresentment for payment to the provider of the credit facility or to theAuthority.
(k) Basis of Investment. In connection with or incidental tothe acquisition or carrying of any investment relating to bonds, program ofinvestment relating to bonds, or carrying of bonds, the Authority may, with theapproval of the Local Government Commission, enter into a contract to place theinvestment or obligation of the Authority, as represented by the bonds,investment, or program of investment and the contract or contracts, in whole orin part, on an interest rate, currency, cash flow, or other basis, includingthe following:
(2) Contracts providing for payments based on levels of, orchanges in, interest rates, currency exchange rates, or stock or other indices.
(3) Contracts to exchange cash flows or a series of payments.
(4) Contracts to hedge payment, currency, rate, spread, orsimilar exposure, including interest rate floors or caps, options, puts, andcalls.
The Authority may enter a contract of this type in connection with, orincidental to, entering into or maintaining any agreement that secures bonds. Acontract shall contain the payment, security, term, default, remedy, and otherterms and conditions the Board considers appropriate. The Authority may enter acontract of this type with any person after giving due consideration, whereapplicable, of the person's creditworthiness as determined by a rating by anationally recognized rating agency or any other criteria the Board considersappropriate. In connection with, or incidental to, the issuance or carrying ofbonds, or the entering of any contract described in this subsection, theAuthority may enter into credit enhancement or liquidity agreements, withpayment, interest rate, termination date, currency, security, default, remedy,and other terms and conditions as the Authority determines. Proceeds of bondsand any moneys set aside and pledged to secure payment of bonds or any of thecontracts entered into under this subsection may be pledged to and used toservice any of the contracts entered into under this section. (1995, c. 458, s. 1; 1997‑68, s. 2.)
(a) Terms. An Authority may provide for the issuance, at onetime or from time to time, of bonds or notes to carry out its corporatepurposes. The principal of, the interest on, and any premium payable upon theredemption of the bonds or notes shall be payable from the proceeds of bonds orrenewal notes, or, in the event bond or renewal note proceeds are notavailable, from any available revenues or other funds provided for thispurpose. The bonds or notes of each issue shall be dated and may be maderedeemable prior to maturity at the option of the Authority or otherwise, atone or more prices, on one or more dates, and upon the terms and conditions setby the Authority. The bonds or notes may also be made payable from time to timeon demand or tender for purchase by the owner upon terms and conditions set bythe Authority. Notes and bonds shall mature at times determined by theAuthority, not exceeding 40 years from the date of issue. The Authority shalldetermine the form and the manner of execution of the bonds or notes, and shallfix the denomination of the bonds or notes and the place of payment ofprincipal and interest. In case an officer whose signature or a facsimile ofwhose signature appears on any bonds or notes ceases to be an officer beforethe delivery of the bond or note, the signature or facsimile shall neverthelessbe valid and sufficient for all purposes the same as if the officer hadremained in office until delivery. The Authority may also provide for theauthentication of the bonds or notes by a trustee or fiscal agent.
Bonds or notes may be issued under this Part without obtaining, exceptas otherwise expressly provided in this Part, the consent of any department,division, commission, board, body, bureau, or other agency of the State or of apolitical subdivision of the State, and without any other proceedings orconditions except as specifically required by this Part or the provisions ofthe resolution authorizing the issuance of, or any trust agreement securing, thebonds or notes.
Prior to the preparation of definitive bonds, the Authority may issueinterim receipts or temporary bonds exchangeable for definitive bonds when thebonds have been executed and are available for delivery. The Authority may alsoprovide for the replacement of any bonds or notes which have been mutilated,destroyed, or lost.
(b) Use of Proceeds. The proceeds of a bond or note shall beused solely for the purposes for which the bond or note was issued and shall bedisbursed in accordance with the resolution authorizing the issuance of a bondor note and with any trust agreement securing the bond or note. If the proceedsof a bond or note of any issue, by reason of increased construction costs orerror in estimates or otherwise, is less than the cost, additional bonds ornotes may in like manner be issued to provide the amount of the deficiency.
(c) Security. Bonds or notes issued by an Authority may besecured in one or more of the following ways:
(1) By the revenues of the regional facility.
(2) By security interests in real or personal property orinterest therein, including a leasehold interest, acquired with the proceeds ofthe bonds or notes or improved with the proceeds of the bonds or notes asdescribed in subsection (e) of this section.
(3) With the approval of the county levying the tax, byreceipts, if any, from a room occupancy and prepared food and beverage taxlevied by a county and distributed to the Authority; provided, however, thatany agreement or undertaking by a county to distribute receipts, if any, fromthe tax to the Authority may not obligate the county to exercise any power oftaxation, or restrict the ability of the county to repeal the tax. However, noaction by a county to discontinue, decrease, or repeal a room occupancy taxshall become effective while previously issued bonds or notes secured byreceipts from such a tax allocated to an authority by the county remainoutstanding.
Thesecurity for the bonds or notes shall be specified in the resolution or trustinstrument authorizing the bonds or notes.
(d) Revenues. The Authority may pledge to the payment of itsrevenue bonds or notes the revenues from the regional facility, includingrevenues from improvements, betterments, or extensions to the facility. The Authoritymay establish, maintain, revise, charge, and collect such rates, fees, rentals,or other charges for the use, services, and facilities of or furnished by aregional facility and provide methods of collection of and penalties fornonpayment of these rates, fees, rentals, or other charges. Except as otherwisepermitted, the rates, fees, rentals, and charges fixed and charged shall be inan amount that will produce sufficient revenues, with any other availablefunds, to meet the maintenance and operation expenses of the regional facilityas well as any improvements and renewals and replacements to the facility,including reserves to pay the principal, interest, and redemption premium due,if any, on any bonds or notes secured by the facility, and to fulfill the termsof any agreements made by the Authority with the holders of bonds or notessecured by revenues of the facility.
(e) Security Interests. Bonds or notes may be secured bysecurity interests in any real or personal property or interest therein,including a leasehold interest, either acquired with the proceeds of bonds ornotes, or upon which improvements are provided from the proceeds of bonds ornotes. The security interest may cover all real and personal property acquiredor improved or any portion of the property, except that if the property subjectto the security interest is a leasehold interest, the security interest is notto the fee simple title. The Authority is authorized to enter into deeds oftrust, mortgages, security agreements, and similar instruments as shall benecessary to carry out the powers in this subsection. Bonds or notes may alsobe secured by security interests in any real or personal property conveyed tothe Authority.
In the event the Authority fails to perform its obligations withrespect to the bonds or notes and foreclosure or similar sale of propertysubject to a security interest occurs, a deficiency judgment may not berendered against the Authority except to the extent that the deficiency ispayable from either revenues from the regional facility or from any revenuesdedicated by act of the General Assembly to the Authority.
(f) Issuance. The issuance of bonds or notes of the Authorityis subject to the approval of the Local Government Commission. Upon the filingwith the Local Government Commission of a resolution of the Authorityrequesting that its bonds or notes be sold, the Commission shall determine themanner in which the bonds or notes will be sold and the price or prices atwhich the bonds or notes will be sold. In determining whether to approve aproposed bond or note issue of the Authority, the Local Government Commissionshall consider the criteria for approval of revenue bonds under G.S. 159‑86.The Local Government Commission shall approve the proposed issue if itdetermines the bond or note issue will meet such criteria and will effect thepurposes of this Part. With the approval of the Authority, the Local GovernmentCommission shall sell the bonds or notes either at public or private sale inthe manner and at the prices determined to be in the best interests of theAuthority and to effect the purposes of this Part.
(g) Certification of Approval. Each bond or note that isrepresented by an instrument shall contain a statement signed by the Secretaryof the Local Government Commission, or an assistant designated by theSecretary, certifying that the issuance of the bond or note has been approvedunder this Part. The signature may be a manual signature or a facsimilesignature, as determined by the Local Government Commission. Each bond or notethat is not represented by an instrument shall be evidenced by a writingrelating to the obligation that identifies the obligation or the issue of whichit is a part, contains the signed statement certifying approval of the LocalGovernment Commission that is required on an instrument, and is filed with theLocal Government Commission. A certification of approval by the LocalGovernment Commission is conclusive evidence that a bond or note complies withthis Part.
(h) State Pledge. The State pledges to the holder of a bond ornote issued under this Part that, as long as the bond or note is outstandingand unpaid, the State will not limit or alter the power the Authority had whenthe bond or note was issued in a way that impairs the ability of the Authorityto produce revenues sufficient with other available funds to do all of thefollowing:
(1) Maintain and operate the facility for which the bond or notewas issued.
(2) Pay the principal of, interest on, and redemption premium,if any, of the bond or note.
(3) Fulfill the terms of an agreement with the holder.
The State further pledges to the holder of a bond or note issued underthis Part that the State will not impair the rights and remedies of the holderconcerning the bond or note.
(i) Investment Securities. All bonds and notes and interestcoupons, if any, issued under this Part are made investment securities withinthe meaning of and for all the purposes of Article 8 of the Uniform CommercialCode, as enacted in Chapter 25 of the General Statutes.
(j) Details of Bonds or Notes. In fixing the details of bondsor notes, the Authority may provide that the bonds or notes may:
(1) Be payable from time to time on demand or tender forpurchase by the owner of the bond or note if a credit facility supports thebond or note, unless the Local Government Commission specifically determinesthat a credit facility is not required because the absence of a credit facilitywill not materially and adversely affect the financial position of theAuthority and the marketing of the bonds or notes at a reasonable interest costto the Authority.
(2) Be additionally supported by a credit facility.
(3) Be made subject to redemption or a mandatory tender forpurchase prior to maturity.
(4) Be capital appreciation bonds.
(5) Bear interest at a rate or rates that may vary, includingvariations permitted pursuant to a par formula.
(6) Be made the subject of a remarketing agreement whereby anattempt is made to remarket the bonds or notes to new purchasers prior to theirpresentment for payment to the provider of the credit facility or to theAuthority.
(k) Basis of Investment. In connection with or incidental tothe acquisition or carrying of any investment relating to bonds, program ofinvestment relating to bonds, or carrying of bonds, the Authority may, with theapproval of the Local Government Commission, enter into a contract to place theinvestment or obligation of the Authority, as represented by the bonds,investment, or program of investment and the contract or contracts, in whole orin part, on an interest rate, currency, cash flow, or other basis, includingthe following:
(2) Contracts providing for payments based on levels of, orchanges in, interest rates, currency exchange rates, or stock or other indices.
(3) Contracts to exchange cash flows or a series of payments.
(4) Contracts to hedge payment, currency, rate, spread, orsimilar exposure, including interest rate floors or caps, options, puts, andcalls.
The Authority may enter a contract of this type in connection with, orincidental to, entering into or maintaining any agreement that secures bonds. Acontract shall contain the payment, security, term, default, remedy, and otherterms and conditions the Board considers appropriate. The Authority may enter acontract of this type with any person after giving due consideration, whereapplicable, of the person's creditworthiness as determined by a rating by anationally recognized rating agency or any other criteria the Board considersappropriate. In connection with, or incidental to, the issuance or carrying ofbonds, or the entering of any contract described in this subsection, theAuthority may enter into credit enhancement or liquidity agreements, withpayment, interest rate, termination date, currency, security, default, remedy,and other terms and conditions as the Authority determines. Proceeds of bondsand any moneys set aside and pledged to secure payment of bonds or any of thecontracts entered into under this subsection may be pledged to and used toservice any of the contracts entered into under this section. (1995, c. 458, s. 1; 1997‑68, s. 2.)
(a) Terms. An Authority may provide for the issuance, at onetime or from time to time, of bonds or notes to carry out its corporatepurposes. The principal of, the interest on, and any premium payable upon theredemption of the bonds or notes shall be payable from the proceeds of bonds orrenewal notes, or, in the event bond or renewal note proceeds are notavailable, from any available revenues or other funds provided for thispurpose. The bonds or notes of each issue shall be dated and may be maderedeemable prior to maturity at the option of the Authority or otherwise, atone or more prices, on one or more dates, and upon the terms and conditions setby the Authority. The bonds or notes may also be made payable from time to timeon demand or tender for purchase by the owner upon terms and conditions set bythe Authority. Notes and bonds shall mature at times determined by theAuthority, not exceeding 40 years from the date of issue. The Authority shalldetermine the form and the manner of execution of the bonds or notes, and shallfix the denomination of the bonds or notes and the place of payment ofprincipal and interest. In case an officer whose signature or a facsimile ofwhose signature appears on any bonds or notes ceases to be an officer beforethe delivery of the bond or note, the signature or facsimile shall neverthelessbe valid and sufficient for all purposes the same as if the officer hadremained in office until delivery. The Authority may also provide for theauthentication of the bonds or notes by a trustee or fiscal agent.
Bonds or notes may be issued under this Part without obtaining, exceptas otherwise expressly provided in this Part, the consent of any department,division, commission, board, body, bureau, or other agency of the State or of apolitical subdivision of the State, and without any other proceedings orconditions except as specifically required by this Part or the provisions ofthe resolution authorizing the issuance of, or any trust agreement securing, thebonds or notes.
Prior to the preparation of definitive bonds, the Authority may issueinterim receipts or temporary bonds exchangeable for definitive bonds when thebonds have been executed and are available for delivery. The Authority may alsoprovide for the replacement of any bonds or notes which have been mutilated,destroyed, or lost.
(b) Use of Proceeds. The proceeds of a bond or note shall beused solely for the purposes for which the bond or note was issued and shall bedisbursed in accordance with the resolution authorizing the issuance of a bondor note and with any trust agreement securing the bond or note. If the proceedsof a bond or note of any issue, by reason of increased construction costs orerror in estimates or otherwise, is less than the cost, additional bonds ornotes may in like manner be issued to provide the amount of the deficiency.
(c) Security. Bonds or notes issued by an Authority may besecured in one or more of the following ways:
(1) By the revenues of the regional facility.
(2) By security interests in real or personal property orinterest therein, including a leasehold interest, acquired with the proceeds ofthe bonds or notes or improved with the proceeds of the bonds or notes asdescribed in subsection (e) of this section.
(3) With the approval of the county levying the tax, byreceipts, if any, from a room occupancy and prepared food and beverage taxlevied by a county and distributed to the Authority; provided, however, thatany agreement or undertaking by a county to distribute receipts, if any, fromthe tax to the Authority may not obligate the county to exercise any power oftaxation, or restrict the ability of the county to repeal the tax. However, noaction by a county to discontinue, decrease, or repeal a room occupancy taxshall become effective while previously issued bonds or notes secured byreceipts from such a tax allocated to an authority by the county remainoutstanding.
Thesecurity for the bonds or notes shall be specified in the resolution or trustinstrument authorizing the bonds or notes.
(d) Revenues. The Authority may pledge to the payment of itsrevenue bonds or notes the revenues from the regional facility, includingrevenues from improvements, betterments, or extensions to the facility. The Authoritymay establish, maintain, revise, charge, and collect such rates, fees, rentals,or other charges for the use, services, and facilities of or furnished by aregional facility and provide methods of collection of and penalties fornonpayment of these rates, fees, rentals, or other charges. Except as otherwisepermitted, the rates, fees, rentals, and charges fixed and charged shall be inan amount that will produce sufficient revenues, with any other availablefunds, to meet the maintenance and operation expenses of the regional facilityas well as any improvements and renewals and replacements to the facility,including reserves to pay the principal, interest, and redemption premium due,if any, on any bonds or notes secured by the facility, and to fulfill the termsof any agreements made by the Authority with the holders of bonds or notessecured by revenues of the facility.
(e) Security Interests. Bonds or notes may be secured bysecurity interests in any real or personal property or interest therein,including a leasehold interest, either acquired with the proceeds of bonds ornotes, or upon which improvements are provided from the proceeds of bonds ornotes. The security interest may cover all real and personal property acquiredor improved or any portion of the property, except that if the property subjectto the security interest is a leasehold interest, the security interest is notto the fee simple title. The Authority is authorized to enter into deeds oftrust, mortgages, security agreements, and similar instruments as shall benecessary to carry out the powers in this subsection. Bonds or notes may alsobe secured by security interests in any real or personal property conveyed tothe Authority.
In the event the Authority fails to perform its obligations withrespect to the bonds or notes and foreclosure or similar sale of propertysubject to a security interest occurs, a deficiency judgment may not berendered against the Authority except to the extent that the deficiency ispayable from either revenues from the regional facility or from any revenuesdedicated by act of the General Assembly to the Authority.
(f) Issuance. The issuance of bonds or notes of the Authorityis subject to the approval of the Local Government Commission. Upon the filingwith the Local Government Commission of a resolution of the Authorityrequesting that its bonds or notes be sold, the Commission shall determine themanner in which the bonds or notes will be sold and the price or prices atwhich the bonds or notes will be sold. In determining whether to approve aproposed bond or note issue of the Authority, the Local Government Commissionshall consider the criteria for approval of revenue bonds under G.S. 159‑86.The Local Government Commission shall approve the proposed issue if itdetermines the bond or note issue will meet such criteria and will effect thepurposes of this Part. With the approval of the Authority, the Local GovernmentCommission shall sell the bonds or notes either at public or private sale inthe manner and at the prices determined to be in the best interests of theAuthority and to effect the purposes of this Part.
(g) Certification of Approval. Each bond or note that isrepresented by an instrument shall contain a statement signed by the Secretaryof the Local Government Commission, or an assistant designated by theSecretary, certifying that the issuance of the bond or note has been approvedunder this Part. The signature may be a manual signature or a facsimilesignature, as determined by the Local Government Commission. Each bond or notethat is not represented by an instrument shall be evidenced by a writingrelating to the obligation that identifies the obligation or the issue of whichit is a part, contains the signed statement certifying approval of the LocalGovernment Commission that is required on an instrument, and is filed with theLocal Government Commission. A certification of approval by the LocalGovernment Commission is conclusive evidence that a bond or note complies withthis Part.
(h) State Pledge. The State pledges to the holder of a bond ornote issued under this Part that, as long as the bond or note is outstandingand unpaid, the State will not limit or alter the power the Authority had whenthe bond or note was issued in a way that impairs the ability of the Authorityto produce revenues sufficient with other available funds to do all of thefollowing:
(1) Maintain and operate the facility for which the bond or notewas issued.
(2) Pay the principal of, interest on, and redemption premium,if any, of the bond or note.
(3) Fulfill the terms of an agreement with the holder.
The State further pledges to the holder of a bond or note issued underthis Part that the State will not impair the rights and remedies of the holderconcerning the bond or note.
(i) Investment Securities. All bonds and notes and interestcoupons, if any, issued under this Part are made investment securities withinthe meaning of and for all the purposes of Article 8 of the Uniform CommercialCode, as enacted in Chapter 25 of the General Statutes.
(j) Details of Bonds or Notes. In fixing the details of bondsor notes, the Authority may provide that the bonds or notes may:
(1) Be payable from time to time on demand or tender forpurchase by the owner of the bond or note if a credit facility supports thebond or note, unless the Local Government Commission specifically determinesthat a credit facility is not required because the absence of a credit facilitywill not materially and adversely affect the financial position of theAuthority and the marketing of the bonds or notes at a reasonable interest costto the Authority.
(2) Be additionally supported by a credit facility.
(3) Be made subject to redemption or a mandatory tender forpurchase prior to maturity.
(4) Be capital appreciation bonds.
(5) Bear interest at a rate or rates that may vary, includingvariations permitted pursuant to a par formula.
(6) Be made the subject of a remarketing agreement whereby anattempt is made to remarket the bonds or notes to new purchasers prior to theirpresentment for payment to the provider of the credit facility or to theAuthority.
(k) Basis of Investment. In connection with or incidental tothe acquisition or carrying of any investment relating to bonds, program ofinvestment relating to bonds, or carrying of bonds, the Authority may, with theapproval of the Local Government Commission, enter into a contract to place theinvestment or obligation of the Authority, as represented by the bonds,investment, or program of investment and the contract or contracts, in whole orin part, on an interest rate, currency, cash flow, or other basis, includingthe following:
(2) Contracts providing for payments based on levels of, orchanges in, interest rates, currency exchange rates, or stock or other indices.
(3) Contracts to exchange cash flows or a series of payments.
(4) Contracts to hedge payment, currency, rate, spread, orsimilar exposure, including interest rate floors or caps, options, puts, andcalls.
The Authority may enter a contract of this type in connection with, orincidental to, entering into or maintaining any agreement that secures bonds. Acontract shall contain the payment, security, term, default, remedy, and otherterms and conditions the Board considers appropriate. The Authority may enter acontract of this type with any person after giving due consideration, whereapplicable, of the person's creditworthiness as determined by a rating by anationally recognized rating agency or any other criteria the Board considersappropriate. In connection with, or incidental to, the issuance or carrying ofbonds, or the entering of any contract described in this subsection, theAuthority may enter into credit enhancement or liquidity agreements, withpayment, interest rate, termination date, currency, security, default, remedy,and other terms and conditions as the Authority determines. Proceeds of bondsand any moneys set aside and pledged to secure payment of bonds or any of thecontracts entered into under this subsection may be pledged to and used toservice any of the contracts entered into under this section. (1995, c. 458, s. 1; 1997‑68, s. 2.)
