In conjunction with the issuance of refunding bonds pursuant to G.S.159‑72 or G.S. 159‑84 a unit of local government may issue a seriesof refunding bonds which shall be payable from the excess of the amount requiredby a trust fund established pursuant to G.S. 159‑72 or G.S. 159‑84to provide for the payment and retirement of the obligations being retired andthe amount required to pay any expenses incurred in connection with suchrefunding to the extent such expenses are payable from said trust fund.
Such refunding bonds shall be special obligations of the municipalityissuing them. The principal of and interest on such refunding bonds shall notbe payable from the general funds of the municipality, nor shall theyconstitute a legal or equitable pledge, charge, lien, or encumbrance upon anyof its property or upon any of its income, receipts, or revenues, except thetrust fund established pursuant to G.S. 159‑72 or G.S. 159‑84 fromwhich such refunding bonds are payable. Neither the credit nor the taxing powerof the municipality is pledged for the payment of the principal or interest ofsuch refunding bonds, and no holder of such refunding bonds has the right tocompel the exercise of the taxing power of the municipality or the forfeitureof any of its property in connection with any default thereon. Every suchrefunding bond shall recite in substance that the principal of and interest onthe bond is payable solely from the trust fund established for its payment andthat the municipality is not obligated to pay the principal or interest exceptfrom such trust fund.
Any refunding bonds issued under this section shall be issued incompliance with the procedure set forth in Article 5 of this Chapter.
The principal amount of any issue of refunding bonds issued pursuant toG.S. 159‑72 or G.S. 159‑84, together with the principal amount ofrefunding bonds, if any, issued pursuant to this section in conjunction with aseries of bonds issued under G.S. 159‑72 or G.S. 159‑84, shall notexceed the sum of the following: (i) the principal amount of the obligationsbeing refinanced, (ii) applicable redemption premiums thereon, (iii) unpaidinterest on such obligations to the date of delivery or exchange of therefunding bonds, (iv) in the event the proceeds from the sale of the refundingbonds are to be deposited in trust as provided by G.S. 159‑72 or G.S.159‑84, interest to accrue on such obligations being refinanced from thedate of delivery of the refunding bonds to the first or any subsequentavailable redemption date or dates selected, in its discretion, by thegoverning body of the unit of local government, or to the date or dates ofmaturity, whichever shall be determined by the governing body of the unit oflocal government to be most advantageous or necessary and (v) expenses,including bond discount, deemed by the governing body to be necessary for theissuance of the refunding bonds. (1977, c. 201, s. 2.)
In conjunction with the issuance of refunding bonds pursuant to G.S.159‑72 or G.S. 159‑84 a unit of local government may issue a seriesof refunding bonds which shall be payable from the excess of the amount requiredby a trust fund established pursuant to G.S. 159‑72 or G.S. 159‑84to provide for the payment and retirement of the obligations being retired andthe amount required to pay any expenses incurred in connection with suchrefunding to the extent such expenses are payable from said trust fund.
Such refunding bonds shall be special obligations of the municipalityissuing them. The principal of and interest on such refunding bonds shall notbe payable from the general funds of the municipality, nor shall theyconstitute a legal or equitable pledge, charge, lien, or encumbrance upon anyof its property or upon any of its income, receipts, or revenues, except thetrust fund established pursuant to G.S. 159‑72 or G.S. 159‑84 fromwhich such refunding bonds are payable. Neither the credit nor the taxing powerof the municipality is pledged for the payment of the principal or interest ofsuch refunding bonds, and no holder of such refunding bonds has the right tocompel the exercise of the taxing power of the municipality or the forfeitureof any of its property in connection with any default thereon. Every suchrefunding bond shall recite in substance that the principal of and interest onthe bond is payable solely from the trust fund established for its payment andthat the municipality is not obligated to pay the principal or interest exceptfrom such trust fund.
Any refunding bonds issued under this section shall be issued incompliance with the procedure set forth in Article 5 of this Chapter.
The principal amount of any issue of refunding bonds issued pursuant toG.S. 159‑72 or G.S. 159‑84, together with the principal amount ofrefunding bonds, if any, issued pursuant to this section in conjunction with aseries of bonds issued under G.S. 159‑72 or G.S. 159‑84, shall notexceed the sum of the following: (i) the principal amount of the obligationsbeing refinanced, (ii) applicable redemption premiums thereon, (iii) unpaidinterest on such obligations to the date of delivery or exchange of therefunding bonds, (iv) in the event the proceeds from the sale of the refundingbonds are to be deposited in trust as provided by G.S. 159‑72 or G.S.159‑84, interest to accrue on such obligations being refinanced from thedate of delivery of the refunding bonds to the first or any subsequentavailable redemption date or dates selected, in its discretion, by thegoverning body of the unit of local government, or to the date or dates ofmaturity, whichever shall be determined by the governing body of the unit oflocal government to be most advantageous or necessary and (v) expenses,including bond discount, deemed by the governing body to be necessary for theissuance of the refunding bonds. (1977, c. 201, s. 2.)
In conjunction with the issuance of refunding bonds pursuant to G.S.159‑72 or G.S. 159‑84 a unit of local government may issue a seriesof refunding bonds which shall be payable from the excess of the amount requiredby a trust fund established pursuant to G.S. 159‑72 or G.S. 159‑84to provide for the payment and retirement of the obligations being retired andthe amount required to pay any expenses incurred in connection with suchrefunding to the extent such expenses are payable from said trust fund.
Such refunding bonds shall be special obligations of the municipalityissuing them. The principal of and interest on such refunding bonds shall notbe payable from the general funds of the municipality, nor shall theyconstitute a legal or equitable pledge, charge, lien, or encumbrance upon anyof its property or upon any of its income, receipts, or revenues, except thetrust fund established pursuant to G.S. 159‑72 or G.S. 159‑84 fromwhich such refunding bonds are payable. Neither the credit nor the taxing powerof the municipality is pledged for the payment of the principal or interest ofsuch refunding bonds, and no holder of such refunding bonds has the right tocompel the exercise of the taxing power of the municipality or the forfeitureof any of its property in connection with any default thereon. Every suchrefunding bond shall recite in substance that the principal of and interest onthe bond is payable solely from the trust fund established for its payment andthat the municipality is not obligated to pay the principal or interest exceptfrom such trust fund.
Any refunding bonds issued under this section shall be issued incompliance with the procedure set forth in Article 5 of this Chapter.
The principal amount of any issue of refunding bonds issued pursuant toG.S. 159‑72 or G.S. 159‑84, together with the principal amount ofrefunding bonds, if any, issued pursuant to this section in conjunction with aseries of bonds issued under G.S. 159‑72 or G.S. 159‑84, shall notexceed the sum of the following: (i) the principal amount of the obligationsbeing refinanced, (ii) applicable redemption premiums thereon, (iii) unpaidinterest on such obligations to the date of delivery or exchange of therefunding bonds, (iv) in the event the proceeds from the sale of the refundingbonds are to be deposited in trust as provided by G.S. 159‑72 or G.S.159‑84, interest to accrue on such obligations being refinanced from thedate of delivery of the refunding bonds to the first or any subsequentavailable redemption date or dates selected, in its discretion, by thegoverning body of the unit of local government, or to the date or dates ofmaturity, whichever shall be determined by the governing body of the unit oflocal government to be most advantageous or necessary and (v) expenses,including bond discount, deemed by the governing body to be necessary for theissuance of the refunding bonds. (1977, c. 201, s. 2.)
