§ 116-41.4. Bonds authorized; amount limited; form, execution and sale; terms and conditions; use of proceeds; additional bonds; interim receipts or temporary bonds; replacement of lost, etc., bonds; - North Carolina Statutes

§ 116‑41.4.  Bondsauthorized; amount limited; form, execution and sale; terms and conditions; useof proceeds; additional bonds; interim receipts or temporary bonds; replacementof lost, etc., bonds; approval or consent for issuance; bonds not debt of State;bond anticipation notes.

The Board is hereby authorizedto issue, subject to the approval of the Director of the Budget, at one time orfrom time to time, revenue bonds of the University for the purpose ofundertaking and carrying out any project or projects hereunder; provided,however, that the aggregate principal amount of revenue bonds which the Boardis authorized to issue under this section during the biennium ending June 30,1969, shall not exceed three million five hundred thousand dollars ($3,500,000);provided, further, the Board shall have authority to issue revenue bonds underthis section in an additional aggregate principal amount not to exceed threemillion five hundred thousand dollars ($3,500,000) during the biennium endingJune 30, 1971; provided, however, that the aggregate principal amount ofrevenue bonds which the Board is authorized to issue under this section duringthe biennium ending June 30, 1973, shall not exceed thirteen million dollars($13,000,000); provided, further, that the aggregate principal amount ofrevenue bonds which the Board is authorized to issue under this section duringthe biennium ending June 30, 1975, shall not exceed thirteen million dollars($13,000,000). The bonds shall be dated, shall mature at such time or times notexceeding 30 years from their date or dates, and shall bear interest at suchrate or rates as may be determined by the Board, and may be made redeemablebefore maturity at the option of the Board at such price or prices and undersuch terms and conditions as may be fixed by the Board prior to the issuance ofthe bonds. The Board shall determine the form and manner of execution of thebonds, and any interest coupons to be attached thereto, and shall fix thedenomination or denominations of the bonds and the place or places of paymentof principal and interest, which may be at any bank or trust company within orwithout the State. In case any officer whose signature or a facsimile of whosesignature appears on any bonds or coupons shall cease to be such officer beforethe delivery of such bonds, such signature or such facsimile shall neverthelessbe valid and sufficient for all purposes the same as if he had remained inoffice until such delivery. Notwithstanding any of the other provisions of thisPart or any recitals in any bonds issued under the provisions of this Part, allsuch bonds shall be deemed to be negotiable instruments under the laws of thisState. 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 University.

The proceeds of the bonds ofeach issue shall be used solely for the purpose for which such bonds shall havebeen authorized and shall be disbursed in such manner and under suchrestrictions, if any, as the Board may provide in the resolution authorizingthe issuance of such bonds. Unless otherwise provided in the authorizingresolution, if the proceeds of such bonds, by error of estimates or otherwise,shall be less than such costs, additional bonds may in like manner be issued toprovide the amount of such deficit and shall be deemed to be of the same issueand shall be entitled to payment from the same fund without preference orpriority of the bonds first issued for the same purpose.

The resolution providing forthe issuance of revenue 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.

Prior to the preparation ofdefinitive bonds, the Board may, under like restrictions, issue interimreceipts or temporary bonds, with or without coupons, exchangeable fordefinitive bonds when such bonds shall have been executed and are available fordelivery. The Board may also provide for the replacement of any bonds whichshall become mutilated or be destroyed or lost.

Bonds may be issued by theBoard under the provisions of this Part, subject to the approval of theDirector of the Budget, but without obtaining the consent of any othercommission, board, bureau or agency of the State, and without any otherproceedings or the happening of any other conditions or things than thoseconsents, proceedings, conditions or things which are specifically required bythis Part.

Revenue bonds issued under theprovisions of this Part shall not be deemed to constitute a debt of the Stateof North Carolina or a pledge of the faith and credit of the State, but suchbonds shall be payable solely from the funds herein provided therefor and astatement to that effect shall be recited on the face of the bonds.

The Board is hereby authorizedto issue, subject to the approval of the Director of the Budget, at one time orfrom time to time, revenue bond anticipation notes of the Board in anticipationof the issuance of bonds authorized pursuant to the provisions of this Part.The principal of and the interest on such notes shall be payable solely fromthe proceeds of bonds or renewal notes or, in the event bond or renewal noteproceeds are not available, any available revenues of the project or projectsfor which such bonds shall have been authorized. The notes of each issue shallbe dated, shall mature at such time or times not exceeding two years from theirdate or dates, shall bear interest at such rate or rates as may be determinedby the Board, and may be made 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, and may be made redeemable before maturity, at the optionof the Board, at such price or prices and under such terms and conditions asmay be fixed by the Board prior to the issuance of the notes. The Board shalldetermine the form and manner of execution of the notes, including any interestcoupons to be attached thereto, and shall fix the denomination or denominationsof the notes 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 notes or coupons, shall cease to be such officer before the delivery of suchnotes, 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 Part or anyrecitals in any notes issued under the provisions of this Part, all such notesshall be deemed to be negotiable instruments under the laws of this State. Thenotes may be issued in coupon or registered form or both, as the Board maydetermine, and provision may be made for the registration of any coupon notesas to principal alone and also as to both principal and interest, and for thereconversion into coupon notes of any notes registered as to both principal andinterest. The Board may sell such notes in such manner, at public or privatesale, and for such price, as it may determine to be for the best interests ofthe University.

The proceeds of the notes ofeach issue shall be used solely for the purpose for which the bonds inanticipation of which such notes are being issued shall have been authorized,and such note proceeds shall be disbursed in such manner and under suchrestrictions, if any, as the Board may provide in the resolution authorizingthe issuance of such notes or bonds.

The resolution providing forthe issuance of notes or bonds may also contain such limitations upon theissuance of additional notes as the Board may deem proper, and such additionalnotes shall be issued under such restrictions and limitations as may beprescribed by such resolution.

Notes may be issued by theBoard under the provisions of this Part, subject to the approval of theDirector of the Budget, but without obtaining the consent of any othercommission, board, bureau or agency of the State, and without any otherproceedings or the happening of any other conditions or things than thoseconsents, proceedings, conditions or things which are specifically required bythis Part.

Revenue bond anticipationnotes issued under the provisions of this Part shall not be deemed toconstitute a debt of the State of North Carolina or a pledge of the faith andcredit of the State, but such notes shall be payable solely from the fundsherein provided therefor and a statement to that effect shall be recited on theface of the notes.

Unless the context shallotherwise indicate, the word "bonds," wherever used in this Part,shall be deemed and construed to include the words "bond anticipationnotes." (1961,c. 1078, s. 4; 1963, c. 944, s. 2; 1965, c. 1033, s. 2; 1967, c. 724; 1969, c.1236; 1971, c. 636; c. 1244, s. 15; 1973, c. 663; 1983, c. 577, s. 3; 1985(Reg. Sess., 1986), c. 955, ss. 32, 33; 2006‑203, s. 48.)