§ 159-172. Authorization and issuance of notes.
§ 159‑172. Authorization and issuance of notes.
(a) Notes issued under this Part shall be authorized byresolution of the governing board of the issuing unit. The resolution shall fixthe maximum aggregate principal amount of notes to be issued thereunder, andmay authorize any officer to fix, within the limitations prescribed by theresolution, the rate of interest, the place or places of payment, and thedenomination or denominations of the notes. Notes that are represented byinstruments shall be signed with the manual or facsimile signatures of theofficers designated by the government board for that purpose, but at least onemanual signature (which may be the signature of the representative of theCommission to the Commission's certificate) must appear on each note that isrepresented by an instrument. Several notes may be issued under oneauthorization so long as the aggregate principal amount of notes outstanding atany one time does not exceed the limits of the authorization.
(b) Before any notes may be issued pursuant to this Part, theymust be approved by the Commission. In determining whether to approve theissuance of notes, the Commission may consider (i) the reasonableness of thebudget estimates of the taxes or other revenues in anticipation of which thetax or revenue anticipation notes are to be issued, (ii) the firm and bindingcharacter of the grant commitment in anticipation of which the grantanticipation notes are to be issued, (iii) whether the amount of the notes,together with the amount of other authorized or outstanding notes issued or tobe issued in anticipation of the same taxes or other revenues or grantcommitments, exceeds the limitations prescribed in G.S. 159‑169, 159‑170or 159‑171 as the case may be, and (iv) any other matters that theCommission considers to have a bearing on whether the issue should be approved.The Commission shall approve the issuance of the notes if, upon the informationand evidence it receives, it finds and determines that (i) the issue isnecessary and expedient, (ii) the budget estimates of the taxes or otherrevenues are reasonable or the grant commitment is firm and binding, and (iii)the amount of the notes, together with the amounts of other authorized oroutstanding notes issued or to be issued in anticipation of the same taxes orother revenues or grant commitments do not exceed the appropriate limitationsprescribed by this Part. An order approving an issue shall not be regarded asan approval of the legality of the notes in any respect.
(c) Notes issued under this Part shall be sold by the Commissionat public or private sale according to such procedures as the Commission mayprescribe. Each such note that is represented by an instrument shall bear onits face or reverse a certificate signed by the secretary of the Commission oran assistant designated by him that the issuance of the note has been approvedunder the provisions of The Local Government Finance Act. Such signature may bea manual or facsimile signature as the Commission may determine. Each note thatis not represented by an instrument shall be evidenced by a writing relating tosuch note, which writing shall identify such note or the issue of which it is apart, bear such certificate and be on file with the Commission. The certificateshall be conclusive evidence that the requirements of this Part have beenobserved, and no note without the Commission's certificate or with respect towhich a writing bearing such certificate has not been filed with the Commissionshall be valid.
(d) When the notes are executed, they shall be delivered to theState Treasurer who shall deliver them to the order of the purchaser andcollect the purchase price or proceeds. The Treasurer shall also collect fromtheir purchaser the purchase price or proceeds of notes that are notrepresented by instruments. The Treasurer shall then deduct from the proceedsthe Commission's expense in connection with the issue, and remit the netproceeds to the official depository of the unit after assurance that thedeposit will be adequately secured as required by law. If the notes have beenissued to renew outstanding notes, the Treasurer, in lieu of collecting thepurchase price or proceeds, may provide for the exchange of the newly issuednotes for the notes to be renewed. (1917, c. 138, s. 14; 1919, c. 178, s. 3(14); C.S., s. 2935; 1921, c.8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, s. 4; 1931, c. 293; 1939,c. 231, s. 1; 1971, c. 780, s. 1; 1973, c. 494, s. 39; 1975, c. 674, ss. 3‑5;1983, c. 322, ss. 10‑12.)