State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_160B > GS_160B-20

§ 160B‑20.  LocalGovernment Commission review of assumption of debt secured by a pledge of faithand credit; assumption of debt secured by a pledge of faith and credit andright to issue authorized but unissued debt secured by a pledge of faith andcredit upon consolidation.

(a)        Review by Local Government Commission. – At the datespecified in the following sentence if any consolidating city or county hasoutstanding any debt secured by a pledge of faith and credit or, if applicable,any authorized but unissued debt secured by a pledge of faith and credit whichis proposed to be assumed by the consolidated city‑county or hasoutstanding or pending approval any debt secured by a pledge of faith andcredit the issuance of which was or is subject to approval by the LocalGovernment Commission, then the assumption of any such debt and, if applicable,the assumption of the right to issue such authorized but unissued debt, if any,shall be subject to review by the Local Government Commission. The financeofficers of the units proposed to be consolidated shall use their best effortsto notify the secretary of the Local Government Commission of the proposedconsolidation and assumption of debt secured by a pledge of faith and creditor, if applicable, the right to issue authorized but unissued debt secured by apledge of faith and credit at least two months before the introduction in theGeneral Assembly of legislation proposing to enact the consolidation into law,provided that time allows. The Local Government Commission, to such extent itdeems appropriate, may conduct a review of the proposed consolidation andassumption of debt secured by a pledge of faith and credit or, if applicable,the right to issue authorized but unissued debt secured by a pledge of faith andcredit and may report the results of its review to the presiding officer ofeach house of the General Assembly to be provided to the respective committeesto which the legislation to enact the consolidation shall be referred.

(b)        Assumption of Debt Secured by a Pledge of Faith and Creditby Consolidated City‑County. – Subject to the requirement of referendumapproval of certain debt assumption for consolidation provided in G.S. 160B‑18(a),upon enactment of the consolidation by the General Assembly and effective uponthe effective date of the consolidation provided in G.S. 160B‑18(b), thedebt secured by a pledge of faith and credit of the consolidating city at theeffective date of the consolidation (including formerly authorized but unissueddebt secured by a pledge of faith and credit as may have been issued at thetime) is assumed by, and becomes a binding obligation of the consolidated city‑county,and the faith and credit of the consolidated city‑county is pledged tosecure any such assumed debt secured by a pledge of faith and credit. Inaddition, any debt secured by a pledge of faith and credit of the county at theeffective date of the consolidation shall become a binding obligation of theconsolidated city‑county and the faith and credit of the consolidatedcity‑county is pledged to secure any such debt.

(c)        Right to Issue Authorized but Unissued Debt Secured by aPledge of Faith and Credit. – Subject to the passage of a referendum relatingto the assumption by the consolidated city‑county of the right to issueany authorized but unissued debt of the consolidating city to be secured by apledge of faith and credit that is proposed to be assumed by the consolidatedcity‑county, upon enactment of the consolidation by the General Assemblyand effective upon the effective date of the consolidation as provided in G.S.160B‑18(b), the right to issue the authorized but unissued debt securedby a pledge of faith and credit of the consolidating city at the effective dateof the consolidation is assumed by, and upon issuance such obligations becomebinding obligations of, the consolidated city‑county, and, upon issuance,the faith and credit of the consolidated city‑county is pledged to secureany such debt secured by a pledge of faith and credit. In addition, the rightto issue the authorized but unissued debt secured by a pledge of faith andcredit of the county at the effective date of the consolidation shall be vestedin the consolidated city‑county and, upon issuance, such debt secured bya pledge of faith and credit becomes a binding obligation of the consolidatedcity‑county and, upon issuance, the faith and credit of the consolidatedcity‑county is pledged to secure any such debt. (1995, c. 461, s. 4; 1995 (Reg. Sess., 1996), c. 742,s. 40.)