§ 116D-12. Variable rate demand bonds and notes. - North Carolina Statutes

§ 116D‑12. Variable rate demand bonds and notes.

(a)        In fixing the details of bonds and notes, the StateTreasurer may provide that the bonds and notes may:

(1)        Be made payable from time to time on demand or tender forpurchase by the owner, if a credit facility supports the bonds or notes, unlessthe State Treasurer specifically determines that a credit facility is notrequired upon a finding and determination by the State Treasurer that theabsence of a credit facility will not materially and adversely affect thefinancial position of the State and the marketing of the bonds or notes at areasonable interest cost to the State.

(2)        Be additionally supported by a credit facility.

(3)        Be made subject to redemption or a mandatory tender forpurchase prior to maturity.

(4)        Bear interest at rates that may vary from any periods oftime, as may be provided in the proceedings providing for the issuance of thebonds or notes, including, without limitation, any variations as may bepermitted pursuant to a par formula.

(5)        Be made the subject of a remarketing agreement whereby anattempt is made to remarket bonds or notes to new purchasers prior to theirpresentment for payment to the provider of the credit facility or to the State.

(b)        If the aggregate principal amount payable by the State undera credit facility is in excess of the aggregate principal amount of bonds ornotes secured by the credit facility, whether as a result of the inclusion inthe credit facility of a provision for the payment of interest for a limitedperiod of time or the payment of a redemption premium, or for any other reason,then the amount of authorized but unissued bonds or notes during the term ofthe credit facility shall not be less than the amount of the excess, unless thepayment of the excess is otherwise provided for by agreement of the Stateexecuted by the State Treasurer. (2000‑3, s. 1.2.)