§ 159D-45. Bonds and notes.
§ 159D-45. Bonds and notes.
(a) The agency isauthorized to provide for the issuance, at one time or from time to time, ofbonds, or notes in anticipation of the issuance of bonds, of the agency tocarry out and effectuate its corporate purposes. The principal of and theinterest on such bonds or notes shall be payable solely from funds providedunder this Article for such payment. Any such notes may be made payable fromthe proceeds of bonds or renewal notes or, in the event bond or renewal noteproceeds are not available, such notes may be paid from any available revenuesor other funds provided therefor. The bonds or notes of each issue shall bedated and may be made redeemable before maturity at the option of the agency atsuch price or prices and upon such terms and conditions as may be determined bythe agency. The bonds may also be made payable from time to time on demand ortender for purchase by the owner upon such terms and conditions as may bedetermined by the agency. Any such bonds or notes shall bear interest at suchrate or rates (including variable rates) as may be determined by the LocalGovernment Commission with the approval of the agency. Notes shall mature atsuch time or times not exceeding 10 years from their date or dates and bonds shallmature at such time or times not exceeding 40 years from their date or dates,as may be determined by the agency. The agency shall determine the form andmanner of execution of the bonds or notes, including any interest coupons to beattached thereto, and shall fix the denomination or denominations and the placeor places of payment of principal and interest, which may be any bank or trustcompany within or without the State. In case any officer whose signature or afacsimile of whose signature appears on any bonds or notes or coupons attachedto them ceases to be that officer before their delivery, the signature orfacsimile shall nevertheless be valid and sufficient for all purposes the sameas if the officer had remained in office until delivery. The agency may alsoprovide for the authentication of the bonds or notes by a trustee or fiscalagent. The bonds or notes may be issued in coupon or in registered form, orboth, as the agency may determine, and provision may be made for theregistration of any coupon bonds or notes as to principal alone and also as toboth principal and interest, and for the reconversion into coupon bonds ornotes of any bonds or notes registered as to both principal and interest, andfor the interchange of registered and coupon bonds or notes. No bonds or notesmay be issued by the agency under this Article unless the issuance thereof isapproved by the Local Government Commission.
(b) The agency shallfile with the Secretary of the Local Government Commission an application requestingapproval of the issuance of the bonds or notes. The application must includeany information and documents concerning the proposed financing and prospectiveborrower, vendee or lessee required by the Secretary.
In determining whether aproposed bond or note issue should be approved, the Local Government Commissionmay consider, in addition to the criteria and requirements in this Article, theeffect of the proposed financing upon any scheduled or proposed sale oftax-exempt obligations by the State or any of its agencies or departments or byany unit of local government in the State.
The Local GovernmentCommission shall approve the issuance of the bonds or notes if, upon theinformation and evidence it receives, it finds that the proposed financing willeffectuate the purposes of this Article.
Upon the filing with the LocalGovernment Commission of a resolution of the agency requesting that its bondsor notes be sold, the bonds or notes may be sold in such manner, either atpublic or private sale, and for such price as the Local Government Commissiondetermines to be for the best interests of the agency and to effectuate bestthe purposes of this Article, as long as the sale is approved by the agency.
(c) The proceeds of anybonds or notes shall be used solely for the purposes for which issued and shallbe disbursed in such manner and under such restrictions, if any, as the agencymay provide in the resolution authorizing the issuance of, or any trustagreement securing, the bonds or notes.
(d) Prior to thepreparation of definitive bonds, the agency may, under like restrictions, issueinterim receipts or temporary bonds, with or without coupons, exchangeable fordefinitive bonds, when the bonds have been executed and are available fordelivery. The agency may also provide for the replacement of any bonds or noteswhich become mutilated or are destroyed or lost.
(e) Bonds or notes maybe issued under the provisions of this Article without obtaining, except asotherwise expressly provided in this Article, the consent of any department,division, commission, board, body, bureau or agency of the State, and withoutany other proceedings or the happening of any conditions or things other thanthose proceedings, conditions or things specifically required by this Articleand the provisions of the resolution authorizing the issuance of, or any trustagreement securing, the bonds or notes.
(f) Before theissuance of bonds pursuant to this Article to finance a project, the Agencyshall hold a public hearing with respect to the proposed project and theissuance of the bonds to finance the proposed project. The public hearing maybe held at any location designated by the Agency, including at the offices ofthe Agency in Raleigh, North Carolina.
The public hearing may beconducted by the Agency or by a hearing officer designated by the Agency toconduct public hearings. Notice of the public hearing must be published atleast once in at least one newspaper of general circulation in the county wherethe proposed project is to be located not less than 14 days before the publichearing. The notice must describe generally the bonds proposed to be issued andthe proposed project, including its general location, and any other informationthe Agency considers appropriate. A copy of the notice of public hearing mustbe mailed to the clerk of the Board of Commissioners of the county in which theproposed project is to be located and to the governing body of any city or townin which the proposed project is to be operated.
(g) A county or citythat receives an allocation to issue recovery zone facility bonds within themeaning of the American Recovery and Reinvestment Tax Act of 2009 to financerecovery zone property may designate the agency as the governmental entityauthorized to issue recovery zone facility bonds.(1985 (Reg. Sess., 1986), c. 794, s. 11; 2000-179, s. 2; 2009-140, s. 9.)