State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-456

§ 143B‑456.  Issuance ofbonds and notes.

(a)        As a means ofraising the funds needed from time to time in the acquisition, construction,equipment, maintenance or operation of any facility, building, structure or anyother matter or thing which the Authority is authorized to acquire, construct,equip, maintain, or operate, all or any of them, including authorized specialuser projects, the Authority is hereby authorized, at one time or from time totime, to borrow money and in evidence thereof to issue bonds, notes and otherobligations of the Authority as provided in this Part. Bonds, notes and otherobligations may also be issued to (i) establish such reserves as the Authoritymay determine to be desirable including, without limitation, a debt service reservefund, and (ii) provide for interest during the estimated period of constructionand for a reasonable period thereafter and to provide for working capital.

The principal of and theinterest on such bonds or notes shall be payable solely from the funds hereinprovided for such payment. Any such notes may be made payable from the proceedsof bonds or renewal notes or, in the event bond or renewal note proceeds arenot available, such notes may be paid from any available revenues, income orassets of the Authority. The bonds or notes of each issue shall be dated andmay be made redeemable before maturity at the option of the Authority at suchprice or prices and under such terms and conditions as may be determined by theAuthority. Any such bonds or notes shall bear interest at such rate or rates,including variable rates, as may be determined by the Authority. Such bonds ornotes shall mature at such time or times not exceeding 40 years from their dateor dates, as may be determined by the Authority.

(b)        Prior to the saleand delivery of any bonds or notes by the Authority, the Governor shall approvethe general purposes of and the general security provisions for any such bondsor notes. Such bonds or notes may be sold in such manner, either at public orprivate sale, and for such price as the Authority shall determine. Bonds ornotes may be issued under the provisions of this Part without obtaining, exceptas otherwise expressly provided in this Part, the consent of any department,division, commission, board, body, bureau or agency of the State, and withoutany other proceedings or the happening of any conditions or things other thanthose proceedings, conditions or things which are specifically required by thisPart and the provisions of the resolution authorizing the issuance of suchbonds or notes or the trust agreement securing the same.

(c)        In the discretionof the Authority any obligations issued under the provisions of this Part maybe secured by a trust agreement by and between the Authority and a corporatetrustee, which may be any trust company or bank having the powers of a trustcompany within or without the State and, in the case of an authorized specialuser project, a deed of trust of which the trustee may be an individual who isa resident of the State. It shall be lawful for any bank or trust companyincorporated under the laws of the State which may act as depository of theproceeds of obligations, revenues or other money under this Part to furnishsuch indemnifying bonds or to pledge such securities as may be required by theAuthority. The pledge of any assets, income or revenues of the Authority to thepayment of the principal of or the interest on any obligations of the Authorityshall be valid and binding from the time when the pledge is made and any suchassets, income or revenues shall immediately be subject to the lien of suchpledge without any physical delivery thereof or further act, and the lien ofany such pledge shall be valid and binding as against all parties having claimsof any kind in tort, contract or otherwise against the Authority, irrespectiveof whether such parties have notice thereof.

(d)        The resolutionauthorizing any obligations or the trust agreement securing the same mayprovide that any moneys held pursuant thereto may be temporarily investedpending the disbursement thereof and shall provide that any officer with whom,or any bank or trust company with which, such moneys shall be deposited shallact as trustee of such moneys and shall hold and apply the same for the purposeshereof, subject to such regulations as this Part and such resolution or trustagreement may provide. Any such moneys or any other moneys of the Authority maybe invested as provided in G.S. 159‑30 or any successor provisionthereof.

(e)        Obligations issuedunder the provisions of this Part are hereby made securities in which allpublic officers and public bodies of the State and its political subdivisions,all insurance companies, trust companies, banking associations, investmentcompanies, executors, administrators, trustees and other fiduciaries mayproperly and legally invest funds, including capital in their control orbelonging to them. Such obligations are hereby made securities which mayproperly and legally be deposited with and received by any State or municipalofficer or any agency or political subdivision of the State for any purpose forwhich the deposit of bonds, notes or obligations of the State is now or mayhereafter be authorized by law.

(f)         The Authority ishereby authorized to provide for the issuance of refunding obligations for thepurpose of refunding any obligations then outstanding which shall have beenissued under the provisions of this Part, including the payment of anyredemption premium thereon and any interest accrued or to accrue to the date ofredemption of such obligations and, if deemed advisable by the Authority, forany corporate purpose of the Authority. The issuance of such obligations, thematurities and other details thereof, the rights of the holders thereof, andthe rights, duties and obligations of the Authority in respect of the sameshall be governed by the provisions of this Part which relate to the issuanceof obligations, insofar as such provisions may be appropriate therefor.

Refunding obligations may be soldor exchanged for outstanding obligations issued under this Part and, if sold,the proceeds thereof may be applied, in addition to any other authorizedpurposes, to the purchase, redemption or payment of such outstandingobligations.

(g)        Any obligationsissued by the Authority under the provisions of this Part shall at all times befree from taxation by the State or any local unit or political subdivision orother instrumentality of the State, excepting inheritance or gift taxes, incometaxes on the gain from the transfer of the obligations, and franchise taxes.The interest on the obligations is not subject to taxation as income.

(h)        Obligations issuedunder the provisions of this Part shall not be deemed to constitute a debt,liability or obligation of the State or of any other public body in the Statesecured by a pledge of the faith and credit of the State or of any other publicbody in the State, respectively, but shall be payable solely from the revenues,income or assets of the Authority pledged thereto. Each obligation issued underthis Part shall contain on the face thereof a statement to the effect that theAuthority shall not be obligated to pay the same or the interest thereon exceptfrom the revenues, income or assets pledged therefor and that neither the faithand credit nor the taxing power of the State or of any other public body in theState is pledged to the payment of the principal of or the interest on suchobligation. (1945,c. 1097, s. 4; 1975, c. 716, s. 2; 1977, c. 198, s. 9; 1979, c. 159, s. 4;1981, c. 856, s. 1; 1981 (Reg. Sess., 1982), c. 1181, s. 1; 1985 (Reg. Sess.,1986), c. 955, ss. 104, 105; 1987, c. 275, s. 3; 1995, c. 46, s. 16; 2006‑203,s. 110.)