§ 142-64. Procedure for incurrence or issuance of financing contract. - North Carolina Statutes

§ 142‑64.  Procedure forincurrence or issuance of financing contract.

(a)        When a Stategovernmental unit has solicited a guaranteed energy conservation measure, theState governmental unit shall request that the State Treasurer approve theState governmental unit's entering into a financing contract to finance thecost of the energy conservation measure. In connection with the request, theState governmental unit shall provide to the State Treasurer any informationthe State Treasurer requests in order to evaluate the request. In the eventthat the State Treasurer determines that financing efficiencies will berealized through the combining of financing contracts, then the State Treasureris authorized to execute and deliver, for and on behalf of the State of NorthCarolina, subject to the terms and conditions set forth in this Article, afinancing contract for the purpose of financing the cost of the multiple energyconservation measures.

(b)        A financingcontract may be entered into pursuant to this Article only after all of thefollowing conditions are met:

(1)        The Office of StateBudget and Management has certified that resources are expected to be availableto the State to pay the payments to fall due under the financing contract asthey become due and payable.

(2)        The Council of Statehas approved the execution and delivery of the financing contract by resolutionthat sets forth all of the following:

a.         The not‑to‑exceedterm or final maturity of the financing contract, which shall be no later than20 years from the date of acceptance of the project.

b.         The not‑to‑exceedinterest rate or rates (or the equivalent thereof), which may be fixed or varyover a period of time, with respect to the financing contract.

c.         The appropriateofficers of the State to execute and deliver the financing contract and allother documentation relating to it.

(3)        The State Treasurerhas approved the financing contract and all other documentation related to it,including any deed of trust, security agreement, trust agreement or any creditfacility.

The resolution of the Councilof State shall include any other matters the Council of State considersappropriate.

(c)        In determiningwhether to approve a financing contract under subdivision (b)(3) of thissection, the State Treasurer may consider the factors the State Treasurerconsiders relevant in order to find and determine all of the following:

(1)        The principal amountto be advanced to the State under the financing contract is adequate and notexcessive for the purpose of paying the cost of the energy conservationmeasure.

(2)        The increase, ifany, in State revenues necessary to pay the sums to become due under thefinancing contract are not excessive.

(3)        The financingcontract can be entered into on terms desirable to the State.

(4)        In the case ofdelivery of certificates of participation, the sale of certificates ofparticipation will not have an adverse effect upon any scheduled or proposedsale of obligations of the State or any State agency.

(d)        The Office of StateBudget and Management is authorized to certify that funds are expected to beavailable to the State to make the payments due under a financing contractentered into under the provisions of this section as the payments become dueand payable. In so certifying, the Office of State Budget and Management maytake into account expected decreases in appropriations to the Stategovernmental unit that will offset payments expected to be made under thefinancing contract. (2002‑161, s. 9; 2006‑190, s. 7.)