§ 116-191. Issuance of bonds and bond anticipation notes. - North Carolina Statutes

§ 116‑191. Issuance of bonds and bond anticipation notes.

The Board is hereby authorized to issue, subject to the approval of theDirector of the Budget, at one time or from time to time, revenue bonds of theBoard for the purpose of paying all or any part of the cost of acquiring,constructing or providing any project or projects. The bonds of each issueshall be dated, shall mature at such time or times not exceeding 50 years fromtheir date or dates, shall bear interest at such rate or rates as may be determinedby the Board, and may be redeemable before maturity, at the option of theBoard, at such price or prices and under such terms and conditions as may befixed by the Board prior to the issuance of the bonds. The Board shalldetermine the form and manner of execution of the bonds, including any interestcoupons to be attached thereto, and shall fix the denomination or denominationsof the bonds and the place or places of payment of principal and interest,which may be at any bank or trust company within or without the State. In caseany officer whose signature or a facsimile of whose signature shall appear onany bonds or coupons shall cease to be such officer before the delivery of suchbonds, such signature or such facsimile shall nevertheless be valid andsufficient for all purposes the same as if he had remained in office until suchdelivery. Notwithstanding any of the other provisions of this Article or anyrecitals in any bonds issued under the provisions of this Article, all suchbonds shall be deemed to be negotiable instruments under the laws of thisState, subject only to the provisions for registration in any resolutionauthorizing the issuance of such bonds or any trust agreement securing thesame. The bonds may be issued in coupon or registered form or both, as theBoard may determine, and provision may be made for the registration of anycoupon bonds as to principal alone and also as to both principal and interest,and for the reconversion into coupon bonds of any bonds registered as to bothprincipal and interest. The Board may sell such bonds in such manner, at publicor private sale, and for such price, as it may determine to be for the bestinterests of the Board.

The proceeds of the bonds of each issue shall be used solely for thepurpose for which such bonds shall have been authorized and shall  be disbursedin such manner and under such restrictions, if any, as the Board may provide inthe resolution authorizing the issuance of such bonds or in the trust agreementhereinafter mentioned securing the same. Unless otherwise provided in theauthorizing resolution or in the trust agreement securing such bonds, if theproceeds of such bonds, by error of estimates or otherwise, shall be less thansuch cost, additional bonds may in like manner be issued to provide the amountof such deficit and shall be deemed to be of the same issue and shall beentitled to payment from the same fund without preference or priority of thebonds first issued for the same purpose.

The resolution providing for the issuance of revenue bonds, and anytrust agreement securing such bonds, may also contain such limitations upon theissuance of additional revenue bonds as the Board may deem proper, and suchadditional bonds shall be issued under such restrictions and limitations as maybe prescribed by such resolution or trust agreement.

Prior to the preparation of definitive bonds, the Board may, under like restrictions, issue interim receipts or temporary bonds, with or  withoutcoupons, exchangeable for definitive bonds when such bonds shall have beenexecuted and are available for delivery. The Board may also provide for thereplacement of any bonds which shall become mutilated or be destroyed or lost.

Except as herein otherwise provided, bonds may be issued under thisArticle and other powers vested in the Board under this Article may beexercised by the Board without obtaining the consent of any department,division, commission, board, bureau or agency of the State and without anyother proceedings or the happening of any other conditions or things than thoseproceedings, conditions or things which are specifically required by thisArticle.

The Board may enter into or negotiate a note with an acceptable bank ortrust company in lieu of issuing bonds for the financing of projects coveredunder this section. The terms and conditions of any note of this nature shallbe in accordance with the terms and conditions surrounding issuance of bonds.

The Board is hereby authorized to issue, subject to the approval of theDirector of the Budget, at one time or from time to time, revenue  bondanticipation notes of the Board in anticipation of the issuance of bondsauthorized pursuant to the provisions of this Article. The principal of and theinterest on such notes shall be payable solely from the proceeds of bonds orrenewal notes or, in the event bond or renewal note proceeds are not available,any available revenues of the project or projects for which such bonds shallhave been authorized. The notes of each issue shall be dated, shall mature atsuch time or times not exceeding two years from their date or dates, shall bearinterest at such rate or rates as may be determined by the Board, and may beredeemable before maturity, at the option of the Board, at such price or pricesand under such terms and conditions as may be fixed by the Board prior to theissuance of the notes. The Board shall determine the form and the manner ofexecution of the notes, including any interest coupons to be attached thereto,and shall fix the denomination or denominations of the notes and the place orplaces of payment of principal and interest, which may be at any bank or trustcompany within or without the State. In case any officer, whose signature or afacsimile of whose signature shall appear on any notes or coupons, shall ceaseto be such officer before the delivery of such notes, such signature or suchfacsimile shall nevertheless be valid and sufficient for all purposes the sameas if he had remained in office until such delivery. Notwithstanding any of theother provisions of this Article or any recitals in any notes issued under theprovisions of this Article, all such notes shall be deemed to be negotiableinstruments under the laws of this State, subject only to the provisions forregistration in any resolution authorizing the issuance of such notes or anytrust agreement securing the bonds in anticipation of which such notes arebeing issued. The notes may be issued in coupon or registered form or both, asthe Board may determine, and provision may be made for the registration of anycoupon notes as to principal alone and also as to both principal and interest,and for the reconversion into coupon notes of any notes registered as to bothprincipal and interest. The Board may sell such notes in such manner, at publicor private sale, and for such price, as it may determine to be for the bestinterests of the Board.

The proceeds of the notes of each issue shall be used solely for thepurpose for which the bonds in anticipation of which such notes are beingissued shall have been authorized, and such note proceeds shall be disbursed insuch manner and under such restrictions, if any, as the Board may provide inthe resolution authorizing the issuance of such notes or bonds or in the trustagreement securing such bonds.

The resolution providing for the issuance of notes, and any trustagreement securing the bonds in anticipation of which such notes are beingauthorized, may also contain such limitations upon the issuance of additionalnotes as the Board may deem proper, and such additional notes shall be issuedunder such restrictions and limitations as may be prescribed by such resolutionor trust agreement. The Board may also provide for the replacement of any noteswhich shall become mutilated or be destroyed or lost.

Except as herein otherwise provided, notes may be issued under thisArticle and other powers vested in the Board under this Article may beexercised by the Board without obtaining the consent of any department,division, commission, board, bureau or agency of the State and without anyother proceedings or the happening of any other conditions or things than thoseproceedings, conditions or things which are specifically required by thisArticle.

Unless the context shall otherwise indicate, the word"bonds," wherever used in this Article, shall be deemed and construedto include the words "bond anticipation notes." (1963, c. 847, s. 5; 1969, c. 1158, s. 2; 1971, c.511, s. 2; 1973, c. 662; 1975, c. 233, s. 2; 1983, c. 577, s. 8.)