State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_159C > GS_159C-8

§ 159C‑8.  Approvalof bonds.

(a)        No bonds may be issued by an authority unless the issuanceof the bonds is first approved by the Local Government Commission.

The authority shall file an application for approval of its proposedbond issue with the Secretary of the Local Government Commission, and shallnotify the Secretary of Commerce of the filing if the project is an industrialproject or pollution control project.

(b)        In determining whether a proposed bond issue should beapproved, the Local Government Commission may consider any of the following:

(1)        Whether the proposed operator and obligor have demonstratedor can demonstrate the financial responsibility and capability to fulfill theirobligations with respect to the financing agreement. In making suchdetermination, the Commission may consider the operator's experience and theobligor's ratio of current assets to current liabilities, net worth, earningstrends and coverage of fixed charges, the nature of the industry or businessinvolved and its stability and any additional security such as creditenhancement, insurance, guaranties or property to be pledged to secure suchbonds.

(2)        Whether the political subdivisions in or near which theproposed project is to be located have the ability to cope satisfactorily withthe impact of the project and to provide, or cause to be provided, the publicfacilities and services, including utilities, that will be necessary for theproject and on account of any increase in population which are expected toresult from the project.

(3)        Whether the proposed date and manner of sale will have anadverse effect upon any scheduled or anticipated sale of obligations by theState or any political subdivision or any agency of either of them.

(4)        Any other factors the Commission considers relevant.

(c)        The Local Government Commission shall not approve theissuance of bonds for a special purpose project unless the governing body ofthe county in which the special purpose project is located has conducted apublic hearing and, at or after the public hearing, approved in principle theissuance of bonds under this Chapter for the purposes of paying all or a partof the proposed special purpose project. Notice of the public hearing must bepublished at least once in at least one newspaper of general circulation in thecounty not less than 14 days before the public hearing. The notice mustdescribe generally the bonds proposed to be issued and the proposed specialpurpose project, including its general location, and any other information thegoverning body considers appropriate.

(d)        If the initial proposed operator of the project is notexpected to be the operator for the term of the bonds proposed to be issued,the Local Government Commission may consider the matters required under subdivision(b)(1) of this section only with respect to the initial operator. The obligorshall be obligated to perform all of the duties of the obligor requiredhereunder during the term the bonds are outstanding. The Local GovernmentCommission shall evaluate the obligor's ability to perform these duties withoutregard to whether the initial proposed operator of the project is expected tobe the operator for the term of the bonds proposed to be issued. To facilitatethe review of the proposed bond issue by the Commission, the Secretary mayrequire the authority to obtain and submit any financial data and informationabout the proposed bond issue and the security for it, including the proposedprospectus or offering circular, the proposed financing agreement and securitydocument and annual and other financial reports and statements of the obligor,as the Secretary may prescribe. The Secretary may also prescribe any forms andrules the Secretary considers reasonably necessary to implement the provisionsof this section. (1975, c. 800, s.1; 1977, c. 198, s. 23; 1979, c. 109, s. 1; 1989, c. 751, s. 7(49); 1991 (Reg.Sess., 1992), c. 959, s. 80; 1995 (Reg. Sess., 1996), c. 575, s. 7; 2000‑179,s. 7.)