State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_116D > GS_116D-28

§ 116D‑28.  Fixingand collecting obligated resources.

(a)        Board to Provide Sufficient Resources. – For the purpose ofaiding in the financing of a special obligation bond project and to providesecurity to the owners of the special obligation bonds issued to finance thespecial obligation bond project, the Board of Governors is authorized, to theextent the generation of the obligated resources is in the control of theBoard, to fix, revise from time to time, charge, and collect the rents,charges, fees, or other revenues constituting the obligated resources. Fees andother revenue sources constituting obligated resources may be imposed orincreased only with the approval of the Board of Governors. As long as anyspecial obligation bonds issued under this Article and payable from thoseobligated resources are outstanding, the obligated resources, to the extentwithin the control of the Board of Governors, shall be so fixed and adjusted,with relation to other funds available, as to provide funds pursuant to therequirements of the resolution or trust agreement authorizing or securing thespecial obligation bonds and at least sufficient to pay the principal of andthe interest on the special obligation bonds as they become due and payable, toassure the continued collection of the obligated resources, and to create andmaintain reserves for these purposes. A sufficient amount of the obligatedresources, except any part that may be necessary to pay the cost ofmaintenance, repair, and operation, and to provide reserves for these purposesand for renewals, replacements, extensions, enlargements, and improvements asmay be provided for in the resolution authorizing the issuance of the specialobligation bonds or in the trust agreement securing the same, shall be setaside at regular intervals as may be provided in the resolution or trustagreement authorizing the issuance of the special obligation bonds in a sinkingfund which is hereby pledged to, and charged with, the payment of the principalof and the interest on the special obligation bonds as they become due and theredemption price or the purchase price of special obligation bonds retired bycall or purchase as provided in the resolution or trust agreement. This pledgeshall be valid and binding from the time it is made, the obligated resources sopledged and thereafter received by the Board of Governors shall immediately besubject to the lien of the pledge without any physical delivery of the pledgeor further act, and the lien of the pledge shall be valid and binding asagainst all parties having claims of any kind in tort, contract, or otherwiseagainst the Board of Governors, irrespective of whether the parties have noticeof the pledge. Neither the resolution nor any trust agreement by which a pledgeis created need be filed or recorded except in the records of the Board ofGovernors. The use and disposition of moneys to the credit of the sinking fundshall be subject to the provisions of the resolution authorizing the issuanceof the special obligation bonds or of the trust agreement securing the bonds.

(b)        State Pledge. – The State pledges to, and agrees with, theholders of any special obligation bonds or notes issued by the Board ofGovernors pursuant to this Article that as long as any of the special obligationbonds or notes are outstanding and unpaid, the State will not limit or alterthe rights vested in the Board of Governors at the time of issuance of thespecial obligation bonds or notes to set the terms and conditions of thespecial obligation bonds or notes and to fulfill the terms of any agreementsmade with the bondholders or noteholders. The State shall in no way impair therights and remedies of the bondholders or noteholders until the specialobligation bonds or notes and all costs and expenses in connection with anyaction or proceedings by or on behalf of the bondholders or noteholders arefully paid, met, and discharged. (2000‑3, s. 1.2.)