§ 116D-1. Definitions. - North Carolina Statutes

Chapter 116D.

Higher Education Bonds.

Article 1.

General Provisions.

§ 116D‑1.  Definitions.

The following definitions apply in this Chapter:

(1)        Board of Governors. – The Board of Governors of theUniversity.

(2)        Capital facility. – Any one or more of the following for theUniversity or for a community college:

a.         One or more buildings, utilities, structures, or otherfacilities or property developments, including streets and landscaping, and theacquisition of equipment and furnishings in connection therewith.

b.         Additions, extensions, enlargements, renovations, andimprovements to existing buildings, utilities, structures, or other facilitiesor property developments, including streets and landscaping.

c.         Land or an interest in land.

d.         Other infrastructure.

The term includes, without limitation, classroombuildings, laboratory buildings, research facilities, libraries, physicaleducation facilities, continuing education centers, student cafeterias, andactivity facilities, including sports facilities, student and faculty housingfacilities, and administrative office facilities.

(3)        Cost. – Any of the following in financing the cost ofcapital facilities and special obligation bond projects, as authorized by thisChapter:

a.         The cost of constructing, reconstructing, renovating,repairing, enlarging, acquiring, and improving capital facilities and specialobligation bond projects, including the acquisition of land, rights‑of‑way,easements, franchises, equipment, furnishings, and other interests in real orpersonal property acquired or used in connection with a capital facility orspecial obligation bond project.

b.         The cost of engineering, architectural, and other consultingservices as may be required.

c.         The cost of providing personnel to ensure effective projectmanagement.

d.         Finance charges, reserves for debt service, and interestprior to and during construction.

e.         Administrative expenses and charges incurred by the State inconnection with the administration of a bond program created under this Chapter.

f.          The cost of bond insurance, investment contracts, creditenhancement, and liquidity facilities, interest‑rate swap agreements orother derivative products, financial and legal consultants, and related costsof bond and note issuance.

g.         The cost of reimbursing the State for any payments made forany cost described in this subdivision.

h.         Any other costs and expenses necessary or incidental to thepurposes of this Chapter.

(4)        Credit facility. – An agreement entered into by the StateTreasurer on behalf of the State with a bank, savings and loan association orother banking institution, an insurance company, reinsurance company, suretycompany or other insurance institution, a corporation, investment banking firmor other investment institution, or any financial institution or other similarprovider of a credit facility, which provider may be located within or withoutthe United States, and providing for prompt payment of all or any part of theprincipal or purchase price (whether at maturity, presentment or tender forpurchase, redemption or acceleration), redemption premium, if any, and intereston any bonds or notes payable on demand or tender by the owner, inconsideration of the State's agreeing to repay the provider of the creditfacility in accordance with the terms and provisions of the agreement.

(5)        Fiscal period. – A fiscal biennium or a fiscal year of thefiscal biennium.

(6)        Fiscal year. – The fiscal year of the State beginning onJuly 1 of one calendar year and ending on June 30 of the next calendar year.

(7)        Par formula. – A provision or formula adopted by the Stateto provide for the adjustment, from time to time, of the interest rate or ratesborne or provided for by any bonds or notes, including:

a.         A provision providing for an adjustment so that the purchaseprice of bonds or notes in the open market would be as close to par aspossible.

b.         A provision providing for an adjustment based upon apercentage or percentages of a prime rate or base rate, which percentages mayvary or be applied for different periods of time.

c.         A provision that the State Treasurer determines isconsistent with this Chapter and will not materially and adversely affect thefinancial position of the State and the marketing of bonds or notes at areasonable interest cost to the State.

(8)        Securities issued under this Chapter. – Any of thefollowing:

a.         University improvement general obligation bonds, refundingbonds, notes, and refunding notes issued under Article 2 of this Chapter.

b.         Special obligation bonds, bond anticipation notes, andrefunding bonds issued under Article 3 of this Chapter.

c.         Community college general obligation bonds, refunding bonds,notes, and refunding notes issued under Article 4 of this Chapter.

(9)        State. – The State of North Carolina.

(10)      State Treasurer. – The incumbent Treasurer, from time totime, of the State.

(11)      University. – The University of North Carolina and itsconstituent and affiliated institutions, including, without limitation, theUniversity of North Carolina Center for Public Television, the University ofNorth Carolina Health Care System, the North Carolina School of Science andMathematics, and the North Carolina Arboretum. (2000‑3, s. 1.2.)