§ 142-87. Additional requirements for certificates of participation indebtedness. - North Carolina Statutes

§ 142‑87.  Additionalrequirements for certificates of participation indebtedness.

(a)        Documentation. – Afinancing contract shall not be used in connection with the delivery ofcertificates of participation by a special corporation until all documentationproviding for its use has been approved by the State Treasurer after the StateTreasurer has consulted with the Department of Administration. Alldocumentation providing for the delivery and sale of certificates ofparticipation must be approved by the State Treasurer.

(b)        Procedure. – Thespecial corporation, if used, shall request the approval of the State Treasurerin writing and shall furnish any information and documentation relating to thedelivery and sale of the certificates of participation requested by the StateTreasurer. In determining whether to approve the financing in thedocumentation, the State Treasurer shall consider the factors set forth in G.S.142‑84(d), as well as the effect of the proposed financing upon anyscheduled or proposed sale of debt obligations by the State or a unit of localgovernment in the State.

(c)        Terms; Interest. –Certificates of participation may be sold by the State Treasurer in the manner,either at public or private sale, and for any price or prices that the StateTreasurer determines to be in the best interest of the State and to effect thepurposes of this Article, except that the terms of the sale must also beapproved by the special corporation. Interest payable with respect tocertificates of participation shall accrue at the rate or rates determined bythe State Treasurer with the approval of the special corporation.

(d)        Trust Agreement. –Certificates of participation may be delivered pursuant to a trust agreement orsimilar instrument with a corporate trustee approved by the State Treasurer,and the provisions of G.S. 142‑89(h) apply to the trust agreement orsimilar instrument to the extent applicable.

(e)        Other Conditions. –All other conditions set forth elsewhere in this Article with respect tocertificates of participation indebtedness, including the conditions set forthin G.S. 142‑86, must be satisfied before any certificates ofparticipation indebtedness is incurred. (2003‑284, s. 46.2; 2003‑314, s. 1;2004-203, s. 79.)