State Codes and Statutes
Statutes > North-carolina > Chapter_159 > GS_159-163_1§ 159‑163.1. Securityof project development financing debt instrument anticipation notes.
Notes issued in anticipationof the sale of project development financing debt instruments are specialobligations of the issuing unit. Except as provided in G.S. 159‑107 andG.S. 159‑110, neither the credit nor the taxing power of the issuing unitmay be pledged for the payment of notes issued in anticipation of the sale ofproject development financing debt instruments. No holder of a projectdevelopment financing debt instrument anticipation note has the right to compelthe exercise of the taxing power by the issuing unit or the forfeiture of anyof its property in connection with any default on the note. Notes issued inanticipation of the sale of project development financing debt instruments maybe secured by the same pledges, charges, liens, covenants, and agreements madeto secure the project development financing debt instruments. In addition, theproceeds of each project development financing debt instrument issue arepledged for the payment of any notes issued in anticipation of the sale of theinstruments, and these notes shall be retired from the proceeds of the sale asthe first priority. (2003‑403, s. 13.)
