State Codes and Statutes
Statutes > North-carolina > Chapter_159E > GS_159E-3§ 159E‑3. Declaration of State interest; purposes.
(a) The Code provides that interest with respect to certainobligations may not be exempt from federal income taxation unless they are inregistered form. It is therefore a matter of State concern that public entitiesbe authorized to provide for the issuance of obligations in such form. It is apurpose of this Chapter to empower all public entities to establish andmaintain a system pursuant to which obligations may be issued in registeredform within the meaning of the applicable provisions of the Code.
(b) Obligations have traditionally been issued predominantly inbearer rather than in registered form, and a change from bearer to registeredform may affect the relationships, rights and duties of issuers of and thepersons that deal with obligations, and by such effect, the costs. Such effectswill impact the various issuers and varieties of obligations differentlydepending on their legal and financial characteristics, their markets and theiradaptability to recent and prospective technological and organizationaldevelopments. It is therefore a matter of State concern that public entities beprovided flexibility in the development of such systems and control over systemincidents, so as to accommodate such differing impacts. It is a purpose of thisChapter to empower the establishment and maintenance, and amendment from timeto time, of differing systems of registration of obligations, including systemincidents, so as to accommodate the differing impacts upon issuers andvarieties of obligations. It is further a purpose of this Chapter to authorizesystems that will facilitate the prompt and accurate transfer of registeredpublic obligations and the development of practices with regard to theregistration and transfer of registered public obligations in order to maintainmarket acceptance for obligations of public entities. (1983, c. 322, s. 1.)
