State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_116D > GS_116D-2

§ 116D‑2.  Generalprovisions.

(a)        Signatures. – Should any officer whose signature orfacsimile signature appears on securities issued under this Chapter cease to bethat officer before the delivery of the securities, the signature or facsimilesignature shall nevertheless have the same validity for all purposes as if theofficer had remained in office until delivery of the securities. Securitiesissued under this Chapter may bear the facsimile signatures of persons, who atthe actual time of the execution of the securities were the proper officers tosign any security although at the date of the security those persons may nothave been officers.

(b)        Tax Exemption. – Securities issued under this Chapter shallat all times be free from taxation by the State or any political subdivision orany of their agencies, excepting estate, inheritance, or gift taxes, incometaxes on the gain from the transfer of the securities, and franchise taxes. Theinterest on the securities is not subject to taxation as income.

(c)        Investment Eligibility. – Securities issued under thisChapter are securities in which all of the following may invest, includingcapital in their control or belonging to them: public officers, agencies, andpublic bodies of the State and its political subdivisions, insurance companies,trust companies, investment companies, banks, savings banks, savings and loanassociations, credit unions, pension or retirement funds, other financialinstitutions engaged in business in the State, executors, administrators,trustees, and other fiduciaries. Securities issued under this Chapter aresecurities which may properly and legally be deposited with and received by anyofficer or agency of the State or a political subdivision of the State for anypurpose for which the deposit of bonds or notes of the State or any politicalsubdivision is now or may later be authorized by law.

(d)        Inconsistent Laws. – All general, special, or local lawsthat are inconsistent with this Chapter do not apply to this Chapter. (2000‑3, s. 1.2.)