§ 116D-11. Issuance of bonds and notes. - North Carolina Statutes

§ 116D‑11.  Issuance ofbonds and notes.

(a)        Terms andConditions. – Bonds or notes may bear any dates, may be serial or term bonds ornotes, or any combination of these, may mature in any amounts and at any times,not exceeding 25 years from their dates, may be payable at any places, eitherwithin or without the United States, in any coin or currency of the UnitedStates that at the time of payment is legal tender for payment of public andprivate debts, may bear interest at any rates, which may vary from time totime, and may be made redeemable before maturity, at the option of the State orotherwise as may be provided by the State, at any prices, including a pricegreater than the face amount of the bonds or notes, and under any terms andconditions, all as may be determined by the State Treasurer, by and with theconsent of the Council of State.

(b)        Signatures; Formand Denomination; Registration. – Bonds or notes may be issued in certificatedor uncertificated form. If issued in certificated form, bonds or notes shall besigned on behalf of the State by the Governor or shall bear the Governor'sfacsimile signature, shall be signed by the State Treasurer or shall bear theState Treasurer's facsimile signature, and shall bear the Great Seal of theState or a facsimile of the Seal impressed or imprinted on them. If bonds ornotes bear the facsimile signatures of the Governor and the State Treasurer,the bonds or notes shall also bear a manual signature which may be that of abond registrar, trustee, paying agent, or designated assistant of the StateTreasurer. The form and denomination of bonds or notes, including theprovisions with respect to registration of the bonds or notes and any systemfor their registration, shall be as the State Treasurer may determine inconformity with this Article.

(c)        Manner of Sale;Expenses. – Subject to the approval by the Council of State as to the manner inwhich bonds or notes shall be offered for sale, whether at public or privatesale, whether within or without the United States, and whether by publishingnotices in certain newspapers and financial journals, mailing notices, invitingbids by correspondence, negotiating contracts of purchase or otherwise, theState Treasurer is authorized to sell bonds or notes at one time or from timeto time at any rates of interest, which may vary from time to time, and at anyprices, including a price less than the face amount of the bonds or notes, asthe State Treasurer may determine. All expenses incurred in the preparation,sale, and issuance of bonds or notes shall be paid by the State Treasurer fromthe proceeds of bonds or notes or other available moneys.

(d)        Application ofProceeds. – The proceeds of any bonds or notes shall be used solely for thepurposes for which the bonds or notes were issued and shall be disbursed in themanner and under the restrictions, if any, that the Council of State mayprovide in the resolution authorizing the issuance of, or in any trustagreement securing, the bonds or notes.

Any additional moneys whichmay be received by means of a grant or grants from the United States or anyagency or department thereof or from any other source to aid in financing thecost of a capital facility may be disbursed, to the extent permitted by theterms of the grant or grants, without regard to any limitations imposed by thisArticle.

(e)        Notes; Repayment. –By and with the consent of the Council of State, the State Treasurer isauthorized to borrow money and to execute and issue notes of the State for thesame, but only in the following circumstances and under the followingconditions:

(1)        For anticipating thesale of bonds, the issuance of which the Council of State has approved, if theState Treasurer considers it advisable to postpone the issuance of the bonds.

(2)        For the payment ofinterest on or any installment of principal of any bonds then outstanding, ifthere are not sufficient funds in the State treasury with which to pay theinterest or installment or principal as they respectively become due.

(3)        For the renewal ofany loan evidenced by notes authorized in this Article.

(4)        For the purposesauthorized in this Article.

(5)        For refunding bondsor notes as authorized in this Article.

Funds derived from the sale ofbonds or notes may be used in the payment of any bond anticipation notes issuedunder this Article. Funds provided by the General Assembly for the payment ofinterest on or principal of bonds shall be used in paying the interest on orprincipal of any notes and any renewals thereof, the proceeds of which havebeen used in paying interest on or principal of the bonds.

(f)         Refunding Bondsand Notes. – By and with the consent of the Council of State, the StateTreasurer is authorized to issue and sell refunding bonds and notes for thepurpose of refunding bonds or notes issued pursuant to this Article and to paythe cost of issuance of the refunding bonds or notes. The refunding bonds andnotes may be combined with any other issues of State bonds and notes similarlysecured. Refunding bonds or notes may be issued at any time prior to the finalmaturity of the debt or obligation to be refunded. The proceeds from the saleof any refunding bonds or notes shall be applied to the immediate payment andretirement of the bonds or notes being refunded or, if not required for theimmediate payment of the bonds or notes being refunded, the proceeds shall bedeposited in trust to provide for the payment and retirement of the bonds ornotes being refunded and to pay any expenses incurred in connection with therefunding. Money in a trust fund may be invested in (i) direct obligations ofthe United States government, (ii) obligations the principal of and interest onwhich are guaranteed by the United States government, (iii) obligations of anyagency or instrumentality of the United States government if the timely paymentof principal and interest on the obligations is unconditionally guaranteed bythe United States government, or (iv) certificates of deposit issued by a bankor trust company located in the State if the certificates are secured by apledge of any of the obligations described in (i), (ii), or (iii) above havingan aggregate market value, exclusive of accrued interest, equal at least to theprincipal amount of the certificates so secured. This section does not limitthe duration of any deposit in trust for the retirement of bonds or notes beingrefunded but that have not matured and are not presently redeemable, or ifpresently redeemable, have not been called for redemption.

(g)        UniversityImprovement Bonds Fund. – The proceeds of university improvement generalobligation bonds and notes, including premium thereon, if any, except theproceeds of bonds the issuance of which has been anticipated by bondanticipation notes or the proceeds of refunding bonds or notes, shall be placedby the State Treasurer in a special fund to be designated "UniversityImprovement Bonds Fund". Moneys in the University Improvement Bonds Fundshall be used for the purposes set forth in this Article.

Any additional moneys that maybe received by means of a grant or grants from the United States of America orany agency or department thereof or from any other source to aid in financingthe cost of any university improvements authorized by this Article may beplaced by the State Treasurer in the University Improvement Bonds Fund or in aseparate account or fund and shall be disbursed, to the extent permitted by theterms of the grant or grants, without regard to any limitations imposed by thisArticle.

The proceeds of universityimprovement general obligation bonds and notes may be used with any othermoneys made available by the General Assembly for the making of universityimprovements, including the proceeds of any other State bond issues, whetherpreviously made available or which may be made available after the effectivedate of this Article. The proceeds of university improvement bonds and notesshall be expended and disbursed under the direction and supervision of theDirector of the Budget. The funds provided by this Article for universityimprovements shall be disbursed for the purposes provided in this Article uponwarrants drawn on the State Treasurer by the State Controller, which warrantsshall not be drawn until requisition has been approved by the Director of theBudget and which requisition shall be approved only after full compliance withthe State Budget Act, Chapter 143C of the General Statutes. (2000‑3, s. 1.2; 2001‑414,s. 45; 2006‑203, s. 56.)