State Codes and Statutes

Statutes > North-carolina > Chapter_159B > GS_159B-24

§ 159B‑24. Approval and sale of bonds.

Prior to the acquisition or the commencement of construction of anyproject consisting of a system or facilities for the generation of power andenergy which is to be financed by the issuance of bonds under the provisions ofthis Chapter, the participating municipalities or joint agency, as the case maybe, shall first obtain a certificate of public convenience and necessity and,in the same proceeding, the approval required by G.S. 159B‑4 hereof, inthe case of the participating municipalities, or the approval required by G.S.159B‑11 hereof, in the case of a joint agency, from the North CarolinaUtilities Commission under such rules, regulations and procedures as theCommission may prescribe.

No municipality or joint agency shall issue any bonds pursuant to thisChapter unless and until, and only to the extent that, the issuance of suchbonds is approved by the Local Government Commission. A participatingmunicipality or joint agency shall file with the secretary of the LocalGovernment Commission an application for Commission approval of the issuance ofthe bonds upon such form as the said Commission may prescribe, which form shallprovide for the submission of such information as the secretary may requireconcerning the proposed bond issue, the details thereof and the securitytherefor. Before he accepts the application, the secretary may require thegoverning board or its representatives to attend a preliminary conference atwhich time the secretary and his deputies may informally discuss the details ofthe proposed issue and the security therefor.

After an application in proper form has been filed, and after apreliminary conference if one is required, the secretary shall notify themunicipality or joint agency in writing that the application has been filed andaccepted for submission to the Commission. The secretary's statement shall beconclusive evidence that the municipality or joint agency, as the case may be,has complied with the requirements of this section with respect to the filingof an application for approval by the said Local Government Commission.

In determining whether a proposed bond issue shall be approved, theCommission may consider:

(1)        The municipality's or joint agency's debt managementprocedures and policies.

(2)        Whether the municipality or joint agency is in default withrespect to any of its debt service obligations.

(3)        Whether, based upon feasibility reports submitted to it, theprobable revenues of the project to be financed or the revenues of themunicipality's electric system, as the case may be, will be sufficient toservice the proposed bonds.

The Commission may inquire into and give consideration to any othermatters that it may believe to have a bearing on whether the issue should be approvedexcept matters which are expressly required by the provisions of this Chapterto be determined by the North Carolina Utilities Commission.

The Commission shall approve the application if, upon the informationand evidence it receives, it finds and determines:

(1)        That, based upon engineering studies and feasibility reportssubmitted to it, the principal amount of the proposed bonds will be adequateand not excessive for the proposed purpose of the issue.

(2)        That the municipality's or joint agency's debt managementprocedures and policies are good, or that reasonable assurances have been giventhat its debt will henceforth be managed in strict compliance with law.

(3)        That the requirements of this Chapter with respect to theissuance of the bonds and the details thereof and security therefor have been,or will be, satisfied.

(4)        That the issuance of the proposed bonds will effectuate thepurposes and policies of this Chapter.

After considering an application, the Local Government Commission shallenter its order either approving or denying the application. An order approvingan issue shall not be regarded as an approval of the legality of the bonds inany respect.

If the Commission enters an order denying the application, theproceedings under this section shall be at an end.

At any time after the Commission approves an application for theissuance of bonds, the governing board of the issuer may adopt a bondresolution or enter into a trust agreement in accordance with the provisions ofthis Chapter, and may thereafter at one time, or from time to time, issue thebonds as provided herein.

Upon the filing with the Local Government Commission of a resolution ofthe issuer requesting that its bonds be sold, such bonds may be sold in suchmanner, either at public or private sale, and for such price as the LocalGovernment Commission shall determine to be for the best interest of the issuerand effectuate best the purposes of this Chapter, provided that such sale shallbe approved by the issuer.

Except as herein expressly provided, bonds may be issued and sold underthe provisions of this Chapter without obtaining the approval or consent of anyother department, division, commission, board, bureau or agency of the State,and without any other proceeding or the happening of any other condition orthing than those proceedings, conditions or things which are specificallyrequired by this Chapter. (1975, c. 186, s. 1; 1995, c. 412, s. 15.)

State Codes and Statutes

Statutes > North-carolina > Chapter_159B > GS_159B-24

§ 159B‑24. Approval and sale of bonds.

Prior to the acquisition or the commencement of construction of anyproject consisting of a system or facilities for the generation of power andenergy which is to be financed by the issuance of bonds under the provisions ofthis Chapter, the participating municipalities or joint agency, as the case maybe, shall first obtain a certificate of public convenience and necessity and,in the same proceeding, the approval required by G.S. 159B‑4 hereof, inthe case of the participating municipalities, or the approval required by G.S.159B‑11 hereof, in the case of a joint agency, from the North CarolinaUtilities Commission under such rules, regulations and procedures as theCommission may prescribe.

No municipality or joint agency shall issue any bonds pursuant to thisChapter unless and until, and only to the extent that, the issuance of suchbonds is approved by the Local Government Commission. A participatingmunicipality or joint agency shall file with the secretary of the LocalGovernment Commission an application for Commission approval of the issuance ofthe bonds upon such form as the said Commission may prescribe, which form shallprovide for the submission of such information as the secretary may requireconcerning the proposed bond issue, the details thereof and the securitytherefor. Before he accepts the application, the secretary may require thegoverning board or its representatives to attend a preliminary conference atwhich time the secretary and his deputies may informally discuss the details ofthe proposed issue and the security therefor.

After an application in proper form has been filed, and after apreliminary conference if one is required, the secretary shall notify themunicipality or joint agency in writing that the application has been filed andaccepted for submission to the Commission. The secretary's statement shall beconclusive evidence that the municipality or joint agency, as the case may be,has complied with the requirements of this section with respect to the filingof an application for approval by the said Local Government Commission.

In determining whether a proposed bond issue shall be approved, theCommission may consider:

(1)        The municipality's or joint agency's debt managementprocedures and policies.

(2)        Whether the municipality or joint agency is in default withrespect to any of its debt service obligations.

(3)        Whether, based upon feasibility reports submitted to it, theprobable revenues of the project to be financed or the revenues of themunicipality's electric system, as the case may be, will be sufficient toservice the proposed bonds.

The Commission may inquire into and give consideration to any othermatters that it may believe to have a bearing on whether the issue should be approvedexcept matters which are expressly required by the provisions of this Chapterto be determined by the North Carolina Utilities Commission.

The Commission shall approve the application if, upon the informationand evidence it receives, it finds and determines:

(1)        That, based upon engineering studies and feasibility reportssubmitted to it, the principal amount of the proposed bonds will be adequateand not excessive for the proposed purpose of the issue.

(2)        That the municipality's or joint agency's debt managementprocedures and policies are good, or that reasonable assurances have been giventhat its debt will henceforth be managed in strict compliance with law.

(3)        That the requirements of this Chapter with respect to theissuance of the bonds and the details thereof and security therefor have been,or will be, satisfied.

(4)        That the issuance of the proposed bonds will effectuate thepurposes and policies of this Chapter.

After considering an application, the Local Government Commission shallenter its order either approving or denying the application. An order approvingan issue shall not be regarded as an approval of the legality of the bonds inany respect.

If the Commission enters an order denying the application, theproceedings under this section shall be at an end.

At any time after the Commission approves an application for theissuance of bonds, the governing board of the issuer may adopt a bondresolution or enter into a trust agreement in accordance with the provisions ofthis Chapter, and may thereafter at one time, or from time to time, issue thebonds as provided herein.

Upon the filing with the Local Government Commission of a resolution ofthe issuer requesting that its bonds be sold, such bonds may be sold in suchmanner, either at public or private sale, and for such price as the LocalGovernment Commission shall determine to be for the best interest of the issuerand effectuate best the purposes of this Chapter, provided that such sale shallbe approved by the issuer.

Except as herein expressly provided, bonds may be issued and sold underthe provisions of this Chapter without obtaining the approval or consent of anyother department, division, commission, board, bureau or agency of the State,and without any other proceeding or the happening of any other condition orthing than those proceedings, conditions or things which are specificallyrequired by this Chapter. (1975, c. 186, s. 1; 1995, c. 412, s. 15.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_159B > GS_159B-24

§ 159B‑24. Approval and sale of bonds.

Prior to the acquisition or the commencement of construction of anyproject consisting of a system or facilities for the generation of power andenergy which is to be financed by the issuance of bonds under the provisions ofthis Chapter, the participating municipalities or joint agency, as the case maybe, shall first obtain a certificate of public convenience and necessity and,in the same proceeding, the approval required by G.S. 159B‑4 hereof, inthe case of the participating municipalities, or the approval required by G.S.159B‑11 hereof, in the case of a joint agency, from the North CarolinaUtilities Commission under such rules, regulations and procedures as theCommission may prescribe.

No municipality or joint agency shall issue any bonds pursuant to thisChapter unless and until, and only to the extent that, the issuance of suchbonds is approved by the Local Government Commission. A participatingmunicipality or joint agency shall file with the secretary of the LocalGovernment Commission an application for Commission approval of the issuance ofthe bonds upon such form as the said Commission may prescribe, which form shallprovide for the submission of such information as the secretary may requireconcerning the proposed bond issue, the details thereof and the securitytherefor. Before he accepts the application, the secretary may require thegoverning board or its representatives to attend a preliminary conference atwhich time the secretary and his deputies may informally discuss the details ofthe proposed issue and the security therefor.

After an application in proper form has been filed, and after apreliminary conference if one is required, the secretary shall notify themunicipality or joint agency in writing that the application has been filed andaccepted for submission to the Commission. The secretary's statement shall beconclusive evidence that the municipality or joint agency, as the case may be,has complied with the requirements of this section with respect to the filingof an application for approval by the said Local Government Commission.

In determining whether a proposed bond issue shall be approved, theCommission may consider:

(1)        The municipality's or joint agency's debt managementprocedures and policies.

(2)        Whether the municipality or joint agency is in default withrespect to any of its debt service obligations.

(3)        Whether, based upon feasibility reports submitted to it, theprobable revenues of the project to be financed or the revenues of themunicipality's electric system, as the case may be, will be sufficient toservice the proposed bonds.

The Commission may inquire into and give consideration to any othermatters that it may believe to have a bearing on whether the issue should be approvedexcept matters which are expressly required by the provisions of this Chapterto be determined by the North Carolina Utilities Commission.

The Commission shall approve the application if, upon the informationand evidence it receives, it finds and determines:

(1)        That, based upon engineering studies and feasibility reportssubmitted to it, the principal amount of the proposed bonds will be adequateand not excessive for the proposed purpose of the issue.

(2)        That the municipality's or joint agency's debt managementprocedures and policies are good, or that reasonable assurances have been giventhat its debt will henceforth be managed in strict compliance with law.

(3)        That the requirements of this Chapter with respect to theissuance of the bonds and the details thereof and security therefor have been,or will be, satisfied.

(4)        That the issuance of the proposed bonds will effectuate thepurposes and policies of this Chapter.

After considering an application, the Local Government Commission shallenter its order either approving or denying the application. An order approvingan issue shall not be regarded as an approval of the legality of the bonds inany respect.

If the Commission enters an order denying the application, theproceedings under this section shall be at an end.

At any time after the Commission approves an application for theissuance of bonds, the governing board of the issuer may adopt a bondresolution or enter into a trust agreement in accordance with the provisions ofthis Chapter, and may thereafter at one time, or from time to time, issue thebonds as provided herein.

Upon the filing with the Local Government Commission of a resolution ofthe issuer requesting that its bonds be sold, such bonds may be sold in suchmanner, either at public or private sale, and for such price as the LocalGovernment Commission shall determine to be for the best interest of the issuerand effectuate best the purposes of this Chapter, provided that such sale shallbe approved by the issuer.

Except as herein expressly provided, bonds may be issued and sold underthe provisions of this Chapter without obtaining the approval or consent of anyother department, division, commission, board, bureau or agency of the State,and without any other proceeding or the happening of any other condition orthing than those proceedings, conditions or things which are specificallyrequired by this Chapter. (1975, c. 186, s. 1; 1995, c. 412, s. 15.)