State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_159C > GS_159C-11

§ 159C‑11. Financing agreements.

(a)        Every financing agreement shall provide that:

(1)        The amounts payable under the financing agreement shall besufficient to pay all of the principal of and redemption premium, if any, andinterest on the bonds issued by the authority to pay the cost of the project asthey respectively become due.

(2)        The obligor shall pay all costs incurred by the authority inconnection with the financing and administration of the project, except as maybe paid out of the proceeds of bonds or otherwise, including insurance costs,the cost of administering the financing agreement and the security document andthe fees and expenses of the fiscal agent or trustee, paying agents, attorneys,consultants and others.

(3)        The obligor shall pay all the costs and expenses ofoperation, maintenance and upkeep of the project.

(4)        The obligor's obligation to provide for the payment of thebonds in full is not subject to cancellation, termination or abatement untilpayment of the bonds or provision for their payment has been made.

(5)        If the proposed initial operator of the project is notexpected to be the operator for the term of the bonds proposed to be issued,the financing agreement shall require that the obligor attempt to arrange for anew operator when the current operator discontinues serving as operator. Thenew operator is subject to the approval of the Secretary under subdivisions(b)(1)a. and (3)b. of G.S. 159C‑7 if the project is an industrial projector a pollution control project, and is subject in any event to the approval ofthe Local Government Commission under G.S. 159C‑8.

(b)        The financing agreement, if in the nature of a leaseagreement, shall either provide that the obligor has an option to purchase, orrequire that the obligor purchase, the project upon the expiration ortermination of the financing agreement subject to the condition that payment infull of the principal of, and the interest and any redemption premium on, thebonds, or provision for payment, has been made.

The financing agreement may provide the authority with rights andremedies in the event of a default by the obligor under the agreement,including any one or more of the following:

(1)        Acceleration of all amounts payable under the financingagreement;

(2)        Reentry and repossession of the project;

(3)        Termination of the financing agreement;

(4)        Leasing or sale or foreclosure of the project to others; and

(5)        Taking whatever actions at law or in equity may appearnecessary or desirable to collect the amounts payable under, and to enforcecovenants made in, the financing agreement.

(c)        The authority's interest in a project under a financingagreement may be that of owner, lessor, lessee, conditional or installmentvendor, mortgagor, mortgagee, secured party or otherwise, but the authorityneed not have any ownership or possessory interest in the project.

The authority may assign all or any of its rights and remedies underthe financing agreement to the trustee or the bondholders under a securitydocument.

The financing agreement may contain any additional provisions theauthority considers necessary or convenient to effectuate the purposes of thisChapter. (1975, c. 800, s.1; 1979, c. 109, s. 1; 1995 (Reg. Sess., 1996), c. 575, s. 8; 2000‑179,s. 8.)