§ 142-14. Issuance of temporary bonds. - North Carolina Statutes

§142‑14.  Issuance of temporary bonds.

Whenever the State Treasurershall be authorized by law to issue bonds or notes of the State, and all acts,conditions and things required by law to happen, exist and be performed, beforethe delivery thereof for value, shall have happened, shall exist and shall havebeen performed, except the printing, lithographing or engraving of thedefinitive bonds or notes authorized and the execution thereof, the StateTreasurer is authorized, by and with the consent of the Governor and Council ofState, to issue and deliver for value temporary bonds or notes, with or withoutcoupons, which may be printed or lithographed in any denomination ordenominations which may be a multiple of one thousand dollars ($1,000), andshall be signed and sealed as shall be provided for the signing and sealing ofsuch definitive bonds or notes, and shall be substantially of the tenor of suchdefinitive bonds or notes except as herein otherwise provided and except thatsuch temporary bonds or notes shall contain such provisions as the Treasurermay elect as to the conditions of payment  of the semiannual interest thereon.Every such temporary bond or note  shall bear upon its face the words"Temporary Bond (or Note) Exchangeable for Definitive Bond." Upon thecompletion and execution of the definitive bonds or notes, such temporary bondsor notes shall be exchangeable without charge therefor to the holder of suchtemporary bonds or notes for definitive bonds or notes of an equal amount ofprincipal. Such exchange shall be made by the Treasurer or by a bank or trustcompany in North Carolina or elsewhere appointed by him as agent which shallhave a capital and surplus of not less than the amount of the definitive bondsor notes to be so exchanged, and in making such exchange the Treasurer shalldetach from the definitive bonds or notes all coupons which represent interesttheretofore paid upon the temporary bonds or notes to be exchanged therefor,and shall cancel all such coupons; and upon such exchange such temporary bondsor notes and the coupons attached thereto, if any, shall be forthwith canceledby the Treasurer of such agent. Until so exchanged, temporary bonds and notesissued under the authority hereof shall in all respects be entitled to all therights and privileges of the definitive securities. (1925, c. 43.)