§ 159‑103. Authorization of project development financing debt instruments; purposes.
(a) Each unit of localgovernment may issue project development financing debt instruments pursuant tothis Article and use the proceeds for one or more of the purposes for which anyunit may issue general obligation bonds pursuant to the following subdivisionsof G.S. 159‑48: (b)(1), (3), (7), (11), (12), (16), (17), (19), (21),(23), (24), or (25), (c)(1), (4), (4a), or (6), or (d)(3), (4), (5), (6) or(7), or (b)(13) excluding stadiums, arenas, golf courses, swimming pools,wading pools, or marinas. In addition, the proceeds may be used for any serviceor facility authorized by G.S. 160A‑536 to be provided in a municipalservice district, but no such district need be created.
For the purpose of thisArticle, the term "capital costs" as defined in G.S. 159‑48(h)also includes (i) interest on the debt instruments being issued or on notesissued in anticipation of the instruments during construction and for a periodnot exceeding seven years after the estimated date of completion ofconstruction and (ii) the establishment of debt service reserves and any otherreserves reasonably required by the financing documents. The proceeds of thedebt instruments may be used either in a development financing districtestablished pursuant to G.S. 160A‑515.1 or G.S. 158‑7.3 or, if theuse directly benefits private development forecast by the development financingplan for the district, outside the development financing district. The proceedsmay be used only for projects that enable, facilitate, or benefit privatedevelopment within the development financing district, the revenue increment ofwhich is pledged as security for the debt instruments. This subsection does notprohibit the use of proceeds to defray the cost of providing water and sewerutilities to a private development in a project development financing district.
(b) Subject toagreement with the holders of its project development financing debtinstruments and the limitation on duration of development financing districtsset out in this Article, each unit of local government may issue additionalproject development financing debt instruments and may issue debt instrumentsto refund any outstanding project development financing debt instruments at anytime before the final maturity of the instruments to be refunded. Generalobligation bonds issued to refund outstanding project development financingdebt instruments shall be issued under the Local Government Bond Act, Article 4of this Chapter. Revenue bonds issued to refund outstanding project developmentfinancing debt instruments shall be issued under the State and Local GovernmentRevenue Bond Act, Article 5 of this Chapter.
Project development financingdebt instruments may be issued partly for the purpose of refunding outstandingproject development financing debt instruments and partly for any other purposeunder this Article. Project development financing debt instruments issued torefund outstanding project development financing debt instruments shall beissued under this Article and not under Article 4 of this Chapter.
(c) If the privatedevelopment project to be benefited by proposed project development financingdebt instruments affects tax revenues in more than one unit of local governmentand more than one affected unit of local government wishes to provideassistance to the private development project by issuing project developmentfinancing debt instruments, then those units may enter into an interlocalagreement pursuant to Article 20 of Chapter 160A of the General Statutes forthe purpose of issuing the instruments. The agreement may include a provisionthat a unit may pledge all or any part of the taxes received or to be receivedon the incremental valuation accruing to the development financing district tothe repayment of instruments issued by another unit that is a party to theinterlocal agreement. (2003‑403, s. 2; 2007‑395, s. 1.)
§ 159‑103. Authorization of project development financing debt instruments; purposes.
(a) Each unit of localgovernment may issue project development financing debt instruments pursuant tothis Article and use the proceeds for one or more of the purposes for which anyunit may issue general obligation bonds pursuant to the following subdivisionsof G.S. 159‑48: (b)(1), (3), (7), (11), (12), (16), (17), (19), (21),(23), (24), or (25), (c)(1), (4), (4a), or (6), or (d)(3), (4), (5), (6) or(7), or (b)(13) excluding stadiums, arenas, golf courses, swimming pools,wading pools, or marinas. In addition, the proceeds may be used for any serviceor facility authorized by G.S. 160A‑536 to be provided in a municipalservice district, but no such district need be created.
For the purpose of thisArticle, the term "capital costs" as defined in G.S. 159‑48(h)also includes (i) interest on the debt instruments being issued or on notesissued in anticipation of the instruments during construction and for a periodnot exceeding seven years after the estimated date of completion ofconstruction and (ii) the establishment of debt service reserves and any otherreserves reasonably required by the financing documents. The proceeds of thedebt instruments may be used either in a development financing districtestablished pursuant to G.S. 160A‑515.1 or G.S. 158‑7.3 or, if theuse directly benefits private development forecast by the development financingplan for the district, outside the development financing district. The proceedsmay be used only for projects that enable, facilitate, or benefit privatedevelopment within the development financing district, the revenue increment ofwhich is pledged as security for the debt instruments. This subsection does notprohibit the use of proceeds to defray the cost of providing water and sewerutilities to a private development in a project development financing district.
(b) Subject toagreement with the holders of its project development financing debtinstruments and the limitation on duration of development financing districtsset out in this Article, each unit of local government may issue additionalproject development financing debt instruments and may issue debt instrumentsto refund any outstanding project development financing debt instruments at anytime before the final maturity of the instruments to be refunded. Generalobligation bonds issued to refund outstanding project development financingdebt instruments shall be issued under the Local Government Bond Act, Article 4of this Chapter. Revenue bonds issued to refund outstanding project developmentfinancing debt instruments shall be issued under the State and Local GovernmentRevenue Bond Act, Article 5 of this Chapter.
Project development financingdebt instruments may be issued partly for the purpose of refunding outstandingproject development financing debt instruments and partly for any other purposeunder this Article. Project development financing debt instruments issued torefund outstanding project development financing debt instruments shall beissued under this Article and not under Article 4 of this Chapter.
(c) If the privatedevelopment project to be benefited by proposed project development financingdebt instruments affects tax revenues in more than one unit of local governmentand more than one affected unit of local government wishes to provideassistance to the private development project by issuing project developmentfinancing debt instruments, then those units may enter into an interlocalagreement pursuant to Article 20 of Chapter 160A of the General Statutes forthe purpose of issuing the instruments. The agreement may include a provisionthat a unit may pledge all or any part of the taxes received or to be receivedon the incremental valuation accruing to the development financing district tothe repayment of instruments issued by another unit that is a party to theinterlocal agreement. (2003‑403, s. 2; 2007‑395, s. 1.)
§ 159‑103. Authorization of project development financing debt instruments; purposes.
(a) Each unit of localgovernment may issue project development financing debt instruments pursuant tothis Article and use the proceeds for one or more of the purposes for which anyunit may issue general obligation bonds pursuant to the following subdivisionsof G.S. 159‑48: (b)(1), (3), (7), (11), (12), (16), (17), (19), (21),(23), (24), or (25), (c)(1), (4), (4a), or (6), or (d)(3), (4), (5), (6) or(7), or (b)(13) excluding stadiums, arenas, golf courses, swimming pools,wading pools, or marinas. In addition, the proceeds may be used for any serviceor facility authorized by G.S. 160A‑536 to be provided in a municipalservice district, but no such district need be created.
For the purpose of thisArticle, the term "capital costs" as defined in G.S. 159‑48(h)also includes (i) interest on the debt instruments being issued or on notesissued in anticipation of the instruments during construction and for a periodnot exceeding seven years after the estimated date of completion ofconstruction and (ii) the establishment of debt service reserves and any otherreserves reasonably required by the financing documents. The proceeds of thedebt instruments may be used either in a development financing districtestablished pursuant to G.S. 160A‑515.1 or G.S. 158‑7.3 or, if theuse directly benefits private development forecast by the development financingplan for the district, outside the development financing district. The proceedsmay be used only for projects that enable, facilitate, or benefit privatedevelopment within the development financing district, the revenue increment ofwhich is pledged as security for the debt instruments. This subsection does notprohibit the use of proceeds to defray the cost of providing water and sewerutilities to a private development in a project development financing district.
(b) Subject toagreement with the holders of its project development financing debtinstruments and the limitation on duration of development financing districtsset out in this Article, each unit of local government may issue additionalproject development financing debt instruments and may issue debt instrumentsto refund any outstanding project development financing debt instruments at anytime before the final maturity of the instruments to be refunded. Generalobligation bonds issued to refund outstanding project development financingdebt instruments shall be issued under the Local Government Bond Act, Article 4of this Chapter. Revenue bonds issued to refund outstanding project developmentfinancing debt instruments shall be issued under the State and Local GovernmentRevenue Bond Act, Article 5 of this Chapter.
Project development financingdebt instruments may be issued partly for the purpose of refunding outstandingproject development financing debt instruments and partly for any other purposeunder this Article. Project development financing debt instruments issued torefund outstanding project development financing debt instruments shall beissued under this Article and not under Article 4 of this Chapter.
(c) If the privatedevelopment project to be benefited by proposed project development financingdebt instruments affects tax revenues in more than one unit of local governmentand more than one affected unit of local government wishes to provideassistance to the private development project by issuing project developmentfinancing debt instruments, then those units may enter into an interlocalagreement pursuant to Article 20 of Chapter 160A of the General Statutes forthe purpose of issuing the instruments. The agreement may include a provisionthat a unit may pledge all or any part of the taxes received or to be receivedon the incremental valuation accruing to the development financing district tothe repayment of instruments issued by another unit that is a party to theinterlocal agreement. (2003‑403, s. 2; 2007‑395, s. 1.)
