§ 142-90. Variable rate demand bonds and notes and financing contract indebtedness. - North Carolina Statutes

§ 142‑90.  Variable ratedemand bonds and notes and financing contract indebtedness.

(a)        In fixing thedetails of special indebtedness, the State Treasurer may make the specialindebtedness subject to any of the following conditions:

(1)        It is payable fromtime to time on demand or tender for purchase by the owner thereof if a creditfacility supports the special indebtedness, unless the State Treasurerspecifically determines that a credit facility is not required upon adetermination by the State Treasurer that the absence of a credit facility willnot materially and adversely affect the financial position of the State or themarketing of the bonds or notes or financing contract indebtedness at areasonable interest cost to the State.

(2)        It is additionallysupported by a credit facility.

(3)        It is subject toredemption or mandatory tender for purchase prior to maturity.

(4)        It bears interest ata rate or rates that may be fixed or may vary over any period of time, as maybe provided in the proceedings providing for the issuance or incurrence of thespecial indebtedness, including any variations that may be permitted pursuantto a par formula.

(5)        It is the subject ofa remarketing agreement under which an attempt is made to remarket specialindebtedness to new purchasers before its presentment for payment to theprovider of the credit facility or to the State.

(b)        If the aggregateprincipal amount payable by the State under a credit facility is in excess ofthe aggregate principal amount of special indebtedness secured by the creditfacility, whether as a result of the inclusion in the credit facility of aprovision for the payment of interest for a limited period of time or thepayment of a redemption premium or for any other reason, then the amount of authorizedbut unissued bonds or notes and financing contract indebtedness during the termof the credit facility shall not be less than the amount of the excess, unlessthe payment of the excess is otherwise provided for by agreement of the Stateexecuted by the State Treasurer. (2003‑284, s. 46.2; 2003‑314, s. 1;2004-203, s. 79.)