§ 142‑84. Procedure forincurrence or issuance of special indebtedness.
(a) Notice andCertificate. Whenever the State or a State agency determines that specialindebtedness is appropriate to finance capital facilities, it shall notify theDepartment of Administration. If the Department of Administration concurs, itshall provide written notice to the State Treasurer advising the StateTreasurer of this determination.
After the filing of the noticeand after any preliminary conference, the State Treasurer shall consult withthe Office of State Budget and Management as to the revenues expected by thatOffice to be available to pay all sums to come due on the special indebtednessduring its term. If, after consulting with the Office of State Budget and Management,the State Treasurer determines by written certificate that it may be desirableto use special indebtedness to finance the capital facilities, the Departmentof Administration shall request the Council of State to give its preliminaryapproval of the use of special indebtedness to finance the capital facilities.The Department of Administration must promptly file copies of the notice andcertificate required by this subsection with the Governor and the Council ofState.
(b) PreliminaryApproval. The Council of State, upon receipt of the notice and certificaterequired by subsection (a) of this section, shall adopt a resolution grantingor denying preliminary approval of the financing. A resolution grantingpreliminary approval may include any other terms, conditions, and restrictionsthe Council of State considers appropriate and not inconsistent with theprovisions of this Article.
(c) Final Approval. Before any special indebtedness may be incurred or issued pursuant to thisArticle, the Council of State must authorize the indebtedness by resolution,either as part of or separate from the resolution required by subsection (b) ofthis section. The resolution must do all of the following:
(1) Authorize theproviding of a particular capital facility or, in general terms, the types orclassifications of capital facilities to be provided.
(2) Set the aggregateprincipal amount or maximum principal amount of the special indebtednessauthorized.
(3) Set the maturity ormaximum maturity of the special indebtedness authorized.
(4) Set the rate, rates,or maximum rate of interest, which may be fixed or vary over a period of time,of the special indebtedness authorized.
(5) Include any otherconditions or matters not inconsistent with the provisions of this Article inthe discretion of the Council of State, which may include the adoption orapprovals as may be authorized in G.S. 142‑88 and G.S. 142‑89.
(d) Financing Terms. No special indebtedness shall be incurred or issued without the prior writtenapproval of the State Treasurer as provided in this subsection, which is inaddition to the certificate given by the State Treasurer pursuant to subsection(a) of this section. In determining whether to approve the proposed financing,the State Treasurer may consider any factors the State Treasurer considersrelevant in order to find and determine all of the following:
(1) The amounts tobecome due under the special indebtedness, including the interest component orrate, are adequate and not excessive for the purpose proposed.
(2) The increase, ifany, in State revenues, including taxes, necessary to pay the sums to becomedue under the special indebtedness is not excessive.
(3) The specialindebtedness can be incurred or issued on terms desirable to the State.
(e) Designation ofFacilities. If the Council of State has authorized in general terms the typesor classifications of capital facilities to be financed, then the particularcapital facilities and the principal amount of special indebtedness to beincurred or issued for each particular capital facility shall be determined bythe Department of Administration after considering any factors it considersrelevant in order to determine that the particular capital facility to beprovided is desirable for the efficient operation of the State and its agenciesand is in the best interests of the State.
(f) Type of Debt andSecurity. In the absence of a determination by the Council of State, theState Treasurer, after consultation with the Department of Administration, shalldetermine the specific security offered and whether the special indebtedness tobe issued or incurred shall be financing contract indebtedness, certificates ofparticipation indebtedness, bonded indebtedness, or some combination of these.
(g) Administration. The State Treasurer, after consultation with the Department of Administration,shall develop appropriate documents for use under this Article. The StateTreasurer shall employ and designate the financial consultants, fiduciaries andother agents, underwriters, and bond attorneys to be associated with theincurrence or issuance of special indebtedness pursuant to this Article.
(h) Oversight by JointLegislative Commission. After all the requirements for approval and oversightprovided in this section have been met, and at least five days before theissuance or incurrence of the special indebtedness, the State Treasurer mustreport to the Joint Legislative Commission on Governmental Operations. Thisreport must include the details of the proposed special indebtedness, includingthe capital facilities to be financed by the indebtedness, the amount of theproposed indebtedness, the type of indebtedness to be issued or incurred, andany other information required by the Commission. (2003‑284, s. 46.2; 2003‑314,s. 1; 2004-203, s. 79.)
§ 142‑84. Procedure forincurrence or issuance of special indebtedness.
(a) Notice andCertificate. Whenever the State or a State agency determines that specialindebtedness is appropriate to finance capital facilities, it shall notify theDepartment of Administration. If the Department of Administration concurs, itshall provide written notice to the State Treasurer advising the StateTreasurer of this determination.
After the filing of the noticeand after any preliminary conference, the State Treasurer shall consult withthe Office of State Budget and Management as to the revenues expected by thatOffice to be available to pay all sums to come due on the special indebtednessduring its term. If, after consulting with the Office of State Budget and Management,the State Treasurer determines by written certificate that it may be desirableto use special indebtedness to finance the capital facilities, the Departmentof Administration shall request the Council of State to give its preliminaryapproval of the use of special indebtedness to finance the capital facilities.The Department of Administration must promptly file copies of the notice andcertificate required by this subsection with the Governor and the Council ofState.
(b) PreliminaryApproval. The Council of State, upon receipt of the notice and certificaterequired by subsection (a) of this section, shall adopt a resolution grantingor denying preliminary approval of the financing. A resolution grantingpreliminary approval may include any other terms, conditions, and restrictionsthe Council of State considers appropriate and not inconsistent with theprovisions of this Article.
(c) Final Approval. Before any special indebtedness may be incurred or issued pursuant to thisArticle, the Council of State must authorize the indebtedness by resolution,either as part of or separate from the resolution required by subsection (b) ofthis section. The resolution must do all of the following:
(1) Authorize theproviding of a particular capital facility or, in general terms, the types orclassifications of capital facilities to be provided.
(2) Set the aggregateprincipal amount or maximum principal amount of the special indebtednessauthorized.
(3) Set the maturity ormaximum maturity of the special indebtedness authorized.
(4) Set the rate, rates,or maximum rate of interest, which may be fixed or vary over a period of time,of the special indebtedness authorized.
(5) Include any otherconditions or matters not inconsistent with the provisions of this Article inthe discretion of the Council of State, which may include the adoption orapprovals as may be authorized in G.S. 142‑88 and G.S. 142‑89.
(d) Financing Terms. No special indebtedness shall be incurred or issued without the prior writtenapproval of the State Treasurer as provided in this subsection, which is inaddition to the certificate given by the State Treasurer pursuant to subsection(a) of this section. In determining whether to approve the proposed financing,the State Treasurer may consider any factors the State Treasurer considersrelevant in order to find and determine all of the following:
(1) The amounts tobecome due under the special indebtedness, including the interest component orrate, are adequate and not excessive for the purpose proposed.
(2) The increase, ifany, in State revenues, including taxes, necessary to pay the sums to becomedue under the special indebtedness is not excessive.
(3) The specialindebtedness can be incurred or issued on terms desirable to the State.
(e) Designation ofFacilities. If the Council of State has authorized in general terms the typesor classifications of capital facilities to be financed, then the particularcapital facilities and the principal amount of special indebtedness to beincurred or issued for each particular capital facility shall be determined bythe Department of Administration after considering any factors it considersrelevant in order to determine that the particular capital facility to beprovided is desirable for the efficient operation of the State and its agenciesand is in the best interests of the State.
(f) Type of Debt andSecurity. In the absence of a determination by the Council of State, theState Treasurer, after consultation with the Department of Administration, shalldetermine the specific security offered and whether the special indebtedness tobe issued or incurred shall be financing contract indebtedness, certificates ofparticipation indebtedness, bonded indebtedness, or some combination of these.
(g) Administration. The State Treasurer, after consultation with the Department of Administration,shall develop appropriate documents for use under this Article. The StateTreasurer shall employ and designate the financial consultants, fiduciaries andother agents, underwriters, and bond attorneys to be associated with theincurrence or issuance of special indebtedness pursuant to this Article.
(h) Oversight by JointLegislative Commission. After all the requirements for approval and oversightprovided in this section have been met, and at least five days before theissuance or incurrence of the special indebtedness, the State Treasurer mustreport to the Joint Legislative Commission on Governmental Operations. Thisreport must include the details of the proposed special indebtedness, includingthe capital facilities to be financed by the indebtedness, the amount of theproposed indebtedness, the type of indebtedness to be issued or incurred, andany other information required by the Commission. (2003‑284, s. 46.2; 2003‑314,s. 1; 2004-203, s. 79.)
§ 142‑84. Procedure forincurrence or issuance of special indebtedness.
(a) Notice andCertificate. Whenever the State or a State agency determines that specialindebtedness is appropriate to finance capital facilities, it shall notify theDepartment of Administration. If the Department of Administration concurs, itshall provide written notice to the State Treasurer advising the StateTreasurer of this determination.
After the filing of the noticeand after any preliminary conference, the State Treasurer shall consult withthe Office of State Budget and Management as to the revenues expected by thatOffice to be available to pay all sums to come due on the special indebtednessduring its term. If, after consulting with the Office of State Budget and Management,the State Treasurer determines by written certificate that it may be desirableto use special indebtedness to finance the capital facilities, the Departmentof Administration shall request the Council of State to give its preliminaryapproval of the use of special indebtedness to finance the capital facilities.The Department of Administration must promptly file copies of the notice andcertificate required by this subsection with the Governor and the Council ofState.
(b) PreliminaryApproval. The Council of State, upon receipt of the notice and certificaterequired by subsection (a) of this section, shall adopt a resolution grantingor denying preliminary approval of the financing. A resolution grantingpreliminary approval may include any other terms, conditions, and restrictionsthe Council of State considers appropriate and not inconsistent with theprovisions of this Article.
(c) Final Approval. Before any special indebtedness may be incurred or issued pursuant to thisArticle, the Council of State must authorize the indebtedness by resolution,either as part of or separate from the resolution required by subsection (b) ofthis section. The resolution must do all of the following:
(1) Authorize theproviding of a particular capital facility or, in general terms, the types orclassifications of capital facilities to be provided.
(2) Set the aggregateprincipal amount or maximum principal amount of the special indebtednessauthorized.
(3) Set the maturity ormaximum maturity of the special indebtedness authorized.
(4) Set the rate, rates,or maximum rate of interest, which may be fixed or vary over a period of time,of the special indebtedness authorized.
(5) Include any otherconditions or matters not inconsistent with the provisions of this Article inthe discretion of the Council of State, which may include the adoption orapprovals as may be authorized in G.S. 142‑88 and G.S. 142‑89.
(d) Financing Terms. No special indebtedness shall be incurred or issued without the prior writtenapproval of the State Treasurer as provided in this subsection, which is inaddition to the certificate given by the State Treasurer pursuant to subsection(a) of this section. In determining whether to approve the proposed financing,the State Treasurer may consider any factors the State Treasurer considersrelevant in order to find and determine all of the following:
(1) The amounts tobecome due under the special indebtedness, including the interest component orrate, are adequate and not excessive for the purpose proposed.
(2) The increase, ifany, in State revenues, including taxes, necessary to pay the sums to becomedue under the special indebtedness is not excessive.
(3) The specialindebtedness can be incurred or issued on terms desirable to the State.
(e) Designation ofFacilities. If the Council of State has authorized in general terms the typesor classifications of capital facilities to be financed, then the particularcapital facilities and the principal amount of special indebtedness to beincurred or issued for each particular capital facility shall be determined bythe Department of Administration after considering any factors it considersrelevant in order to determine that the particular capital facility to beprovided is desirable for the efficient operation of the State and its agenciesand is in the best interests of the State.
(f) Type of Debt andSecurity. In the absence of a determination by the Council of State, theState Treasurer, after consultation with the Department of Administration, shalldetermine the specific security offered and whether the special indebtedness tobe issued or incurred shall be financing contract indebtedness, certificates ofparticipation indebtedness, bonded indebtedness, or some combination of these.
(g) Administration. The State Treasurer, after consultation with the Department of Administration,shall develop appropriate documents for use under this Article. The StateTreasurer shall employ and designate the financial consultants, fiduciaries andother agents, underwriters, and bond attorneys to be associated with theincurrence or issuance of special indebtedness pursuant to this Article.
(h) Oversight by JointLegislative Commission. After all the requirements for approval and oversightprovided in this section have been met, and at least five days before theissuance or incurrence of the special indebtedness, the State Treasurer mustreport to the Joint Legislative Commission on Governmental Operations. Thisreport must include the details of the proposed special indebtedness, includingthe capital facilities to be financed by the indebtedness, the amount of theproposed indebtedness, the type of indebtedness to be issued or incurred, andany other information required by the Commission. (2003‑284, s. 46.2; 2003‑314,s. 1; 2004-203, s. 79.)
