§ 159-83. Powers.

§ 159‑83.  Powers.

(a)        In addition to thepowers they may now or hereafter have, the State and each municipality shallhave the following powers, subject to the provisions of this Article and of anyrevenue bond order or trust agreement securing revenue bonds:

(1)        To acquire by gift,purchase, or exercise of the power of eminent domain or to construct,reconstruct, improve, maintain, better, extend, and operate, one or morerevenue bond projects or any portion thereof without regard to location withinor without its boundaries, upon determination (i) in the case of the State, bythe Council of State and (ii) in the case of a municipality, by resolution ofthe governing board that a location wholly or partially outside its boundariesis necessary and in the public interest. The authority to exercise the power ofeminent domain granted in this subdivision shall not apply to economicdevelopment projects described in G.S. 159‑81(3)m., unless revenue bondsfor the economic development project were approved by the Local GovernmentCommission pursuant to G.S. 159‑87 prior to August 15, 2006.

(2)        To sell, exchange,transfer, assign or otherwise dispose of any revenue bond project or portionthereof or interest therein determined (i) in the case of the State, by the Councilof State and (ii) in the case of a municipality, by resolution of the governingboard not to be required for any public purpose.

(3)        To sell, furnish,and distribute the services, facilities, or commodities of revenue bondprojects.

(4)        To enter intocontracts with any person, firm, or corporation, public or private, on suchterms (i) in the case of the State, as the Council of State and (ii) in thecase of a municipality, as the governing board may determine, with respect tothe acquisition, construction, reconstruction, extension, betterment,improvement, maintenance, or operation of revenue bond projects, or the sale,furnishing, or distribution of the services, facilities or commodities thereof.

(5)        To borrow money forthe purpose of acquiring, constructing, reconstructing, extending, bettering,improving, or otherwise paying the cost of revenue bond projects, to issue itsrevenue bonds or bond anticipation notes therefor, in the name of the State ora municipality, as the case may be, and to pledge, mortgage, or grant asecurity interest in all or a portion of the real and personal property,whether owned or leased, comprising any revenue‑producing utility orpublic service enterprise facilities or systems acquired, constructed,reconstructed, extended, bettered, or improved with the proceeds of theborrowing. Property subject to a mortgage, deed of trust, security interest, orsimilar lien pursuant to this subdivision may be sold at foreclosure in anymanner permitted by the instrument creating the encumbrance, without compliancewith any other provision of law regarding the disposition of publicly ownedproperty. The granting of a lien on, or security interest in, hospital orhealth‑related real or tangible personal property and the conveyance of thisproperty pursuant to the provisions of the lien or security interest are notsubject to the provisions of G.S. 131E‑8, 131E‑13, or 131E‑14.

(6)        To establish,maintain, revise, charge, and collect such rates, fees, rentals, tolls, orother charges, free of any control or regulation by the North CarolinaUtilities Commission or any other regulatory body except as provided in G.S.159‑95 for the use, services, facilities, and commodities of or furnishedby any revenue bond project, and to provide methods of collection of andpenalties for nonpayment of such rates, fees, rentals, tolls, or other charges.The rates, fees, rentals, tolls and charges so fixed and charged shall be suchas will produce revenues at least sufficient with any other available funds tomeet the expense and maintenance and operation of and renewals and replacementsto the revenue bond project, including reserves therefor, to pay when due theprincipal, interest, and redemption premiums (if any) on all revenue bonds orbond anticipation notes secured thereby, and to fulfill the terms of anyagreements made by the State or the issuing municipality with the holders ofrevenue bonds issued to finance all or any portion of the cost of the project.

(7)        To pledge all orpart of any proceeds derived from the use of on‑street parking meters tothe payment of the cost of operating, maintaining, and improving parkingfacilities whether on‑street or off‑street, and the principal ofand the interest on revenue bonds or bond anticipation notes issued for on‑streetor off‑street parking facilities.

(8)        To pledge to thepayment of its revenue bonds or bond anticipation notes and interest thereonrevenues from one or more revenue bond projects and any leases or agreements tosecure such payment, including revenues from improvements, betterments, orextensions to such projects thereafter constructed or acquired as well as therevenues from existing systems, plants, works, instrumentalities, andproperties of the projects to be improved, bettered, or extended.

(8a)      In the case of anycounty, city, town, or incorporated village, to make loans or advances to amunicipality to provide funds to the municipality to pay any costs of anyrevenue bond project. Funds received by a municipality in reimbursement of aloan or advance shall be distributed and restricted as provided in G.S. 159‑27.1.

(9)        To appropriate,apply, or expend for the following purposes the proceeds of its revenue bonds,notes issued in anticipation thereof, and revenues pledged under any resolutionor order authorizing or securing the bonds: (i) to pay interest on the bonds ornotes and the principal or redemption price thereof when due; (ii) to meetreserves and other requirements set forth in the bond order or trust agreement;(iii) to pay the costs of the revenue bond projects authorized in the bondorder, reimburse funds loaned or advanced for the costs of these revenue bondprojects in accordance with the bond order, and provide working capital forinitial maintenance and operation until funds are available from revenues; (iv)to pay and discharge revenue bonds and notes issued in anticipation thereof;(v) to pay and discharge general obligation bonds issued under Article 4 ofthis Chapter or under any act of the General Assembly, when the revenues of theproject financed in whole or in part by the general obligation bonds will bepledged to the payment of the revenue bonds or notes.

(10)      To make and enforcerules and regulations governing the use, maintenance, and operation of revenuebond projects.

(11)      To accept gifts orgrants of real or personal property, money, material, labor, or supplies forthe acquisition, construction, reconstruction, extension, improvement,betterment, maintenance, or operation of any revenue bond project and to make andperform such agreements or contracts as may be necessary or convenient inconnection with the procuring or acceptance of such gifts or grants.

(12)      To accept loans,grants, or contributions from, and to enter into contracts and cooperate withthe United States of America, the State of North Carolina, or any agencythereof, with respect to any revenue bond project.

(13)      To enter on anylands, waters, and premises for the purpose of making surveys, borings,soundings, examinations, and other preliminary studies for constructing andoperating any revenue bond project.

(14)      To retain and employconsultants and other persons on a contract basis for rendering professional,financial, or technical assistance and advice and to select and retain subjectto approval of the Local Government Commission the financial consultants,underwriters and bond attorneys to be associated with the issuance of any bondsand to pay for services rendered by underwriters, financial consultants or bondattorneys out of the proceeds of any such issue with regard to which theservices were performed.

(15)      Subject to anyprovisions of law requiring voter approval for the sale or lease of utility orenterprise systems, to lease to or from any person, firm, or corporation,public or private, all or part of any revenue bond project, upon such terms andconditions as and for such term of years, not in excess of 40 years, (i) in thecase of the State, as the Council of State and (ii) in the case of amunicipality, as the governing board may deem advisable to carry out theprovisions of this Article, and to provide in such lease for the extension orrenewal thereof and, if deemed advisable, for an option to purchase orotherwise lawfully acquire the project upon terms and conditions therein specified.

(16)      To execute suchinstruments and agreements and to do all things necessary or therein in theexercise of the powers herein granted, or in the performance of the covenantsor duties of the State or a municipality, as the case may be, or to secure thepayment of its revenue bonds.

(b)        Any contract,agreement, lease, deed, covenant, or other instrument or document evidencing anagreement or covenant between bondholders or any public agency and the State ora municipality issuing revenue bonds with respect to any of the powersconferred in this section shall be approved by the commission.

(c)        In addition to thepowers they may now or hereafter have, the State and each municipality shallhave the following powers, notwithstanding any provisions of this Article tothe contrary, in connection with the development of new and existing seaportsand airports:

(1)        To acquire,construct, own, own jointly with public and private parties, lease as lessee,mortgage, sell, lease as lessor, or otherwise dispose of lands and facilitiesand improvements, including undivided interests therein;

(2)        To finance andrefinance for public and private parties seaport and airport facilities andimprovements that relate to, develop, or further waterborne or airbornecommerce and cargo and passenger traffic, including commercial, industrial,manufacturing, processing, mining, transportation, distribution, storage,marine, aviation, and environmental facilities and improvements;

(3)        To secure any suchfinancing or refinancing by all or any portion of its revenues, income orassets or other available moneys associated with any of its seaport or airportfacilities and with the facilities and improvements to be financed orrefinanced, and by foreclosable liens on all or any part of its propertiesassociated with any of its seaport or airport facilities and with thefacilities and improvements to be financed or refinanced, but in no event tocreate a debt secured by a pledge of its faith and credit.

(d)        In addition to thepowers they may now or hereafter have, the State and each municipality shallhave the following powers, notwithstanding any provisions of this Article orany other statute to the contrary, in connection with the development offacilities for the use of any agency or agencies of the government of theUnited States of America:

(1)        To acquire,construct, own jointly with public and private parties, lease as leasor orleasee, mortgage, sell, or otherwise dispose of lands, facilities andimprovements, including undivided interests therein and to do so, regardless ofthe provisions of any other statute, on such terms (i) in the case of theState, as the Council of State and (ii) in the case of a municipality, as thegoverning board may deem advisable to carry out the provisions of thissubsection;

(2)        To finance andrefinance facilities and related improvements for the use of any agency of thegovernment of the United States of America;

(3)        To secure any suchfinancing or refinancing by all or any portion of the revenue, income or assetsor other available monies associated with such facilities and improvements tobe financed or refinanced, and by foreclosable liens on all or any part of thefacilities and improvements to be financed or refinanced, but in no event tocreate a debt secured by a pledge of its faith and credit.

(e)        Repealed by SessionLaws 2001‑174, s. 39, effective November 29, 2001.

(f)         In addition to thepowers they may now or hereafter have, each municipality has the power tofinance and refinance the cost of water treatment facilities and relatedtransmission mains, and their expansion and improvement, all or some portion ofwhich may be located on land leased from an authority created under theprovisions of G.S. 162A‑3.1, for a term not less than the term of the obligationsissued or otherwise incurred for the purpose. The authority may own or operate(or both) such facilities and mains and may contract with one or more of thepolitical subdivisions that are members of the authority for operation of allor portions thereof. For this purpose, each municipality has, in addition tothe powers it has under applicable law, all the powers under G.S. 162A‑6(b)of an authority created under G.S. 162A‑3.1, and the politicalsubdivisions that are members of the authority and that contract with suchmunicipality for a supply of water and a portion of the capacity of the watertreatment facilities and mains shall have all the powers of politicalsubdivisions under G.S. 162A‑6(b) and G.S. 162A‑16 contracting withan authority created under G.S. 162A‑3.1. This provision is supplementalto the other provisions of this Article. (Ex. Sess., 1938, c. 2, s. 3; 1951, c. 703, ss. 2, 3;1953, c. 922, s. 2; 1969, c. 1118, s. 2; 1971, c. 780, s. 1; 1973, c. 494, s.17; 1983, c. 554, ss. 3‑4; 1985, c. 723, s. 2; 1985 (Reg. Sess., 1986),c. 795, s. 1; c. 933, s. 4; 1987 (Reg. Sess., 1988), c. 976, s. 2; 1989, c.168, ss. 39, 40; 1991, c. 508, s. 2; 2001‑474, ss. 38, 39; 2005‑238,s. 4; 2005‑249, s. 1; 2006‑224, s. 3; 2006‑259, s. 47.)