§ 142-29.2. Definitions. - North Carolina Statutes

§142‑29.2.  Definitions.

The words and phrases definedin this section shall have the meanings indicated when used in this Article,unless the context clearly requires another meaning:

(1)        "Authorizedinvestments" means

a.         Direct obligationsof the United States government,

b.         Obligations theprincipal of and the interest on which are guaranteed by the United Statesgovernment,

c.         Evidences ofownership of proportionate interests in future interest and principal paymentson specified obligations described in a. and b. above, which obligations areheld by a bank or trust company organized and existing under the laws of theUnited States of America or any state thereof in the capacity of custodian,

d.         Obligations of stateor local government municipal bond issuers, provision for the payment of theprincipal of and interest on which shall have been made by deposit with atrustee or escrow agent of obligations described in a., b. or c. above, thematuring principal of and interest on which, when due and payable, shallprovide sufficient money with any other money held in trust for such purpose topay the principal of, premium, if any, and interest on such obligations ofstate or local government municipal bond issuers, and which are rated in thehighest rating by Standard & Poor's Corporation and Moody's InvestorsService, Inc.,

e.         Obligations of stateor local government municipal bond issuers, the principal of and interest onwhich, when due and payable, have been insured by a bond insurance companywhich is rated in the highest rating category by Standard & Poor'sCorporation and Moody's Investors Service, Inc.,

f.          Full faith andcredit obligations of state or local government bond issuers which are rated inthe highest rating category by Standard & Poor's Corporation and Moody'sInvestors Service, Inc., and

g.         Any obligations orinvestments in which the State Treasurer is authorized, at the time of suchinvestment, to invest funds of the State.

(2)        "Bonddocumentation" means any resolution, order, trust agreement, trustindenture or other document authorizing the issuance of and securing anyoutstanding obligations.

(3)        "Bonds"means any bonds issued under the provisions of this Article.

(4)        "Creditfacility" means an agreement entered into by the State Treasurer on behalfof the State with a bank, savings and loan association or other bankinginstitution, an insurance company, reinsurance company, surety company or otherinsurance institution, a corporation, investment banking firm or otherinvestment institution, or any financial institution providing for promptpayment of all or any part of the principal (whether at maturity, presentmentfor purchase, redemption or acceleration), redemption premium, if any, andinterest on any refunding obligations payable on demand or tender by the ownerissued in accordance with this Article, in consideration of the State agreeingto repay the provider of such credit facility in accordance with terms andprovisions of such agreement, provided, that any such agreement shall providethat the obligation of the State thereunder shall have only such sources ofpayment as are permitted for the payment of refunding obligations issued underthis Article.

(5)        "Notes"means any bond anticipation notes or notes issued under the provisions of thisArticle.

(6)        "Outstandingobligations" means any outstanding bonds, bond anticipation notes or notesof the State, whether now outstanding or hereafter issued, the payment of theprincipal of and the interest on which are secured by a pledge of the fullfaith, credit and taxing power of the State and which may also be secured, asand to the extent provided in applicable bond documentation, by additionalsecurity.

(7)        "Parformula" shall mean any provision or formula adopted by the State toprovide for the adjustment, from time to time, of the interest rate or ratesborne by any refunding obligations so that the purchase price of such refundingobligations in the open market would be as close to par as possible.

(8)        "Refundingobligations" means any notes or bonds issued under the provisions of thisArticle. (1935, c. 445, s. 2; 1985 (Reg. Sess., 1986), c. 823,s. 1.)