§ 143B-456.1. Bonds and notes for special user projects. - North Carolina Statutes

§ 143B‑456.1.  Bonds and notes for special userprojects.

(a)        The Authority is also hereby authorized, subject to theprovisions of this section, to issue, at one time or from time to time, bondsand notes to finance special user projects. The term "special userproject" shall mean any land, equipment or any one or more buildings orother structures, whether or not on the same site or sites, and anyrehabilitation, improvement, renovation or enlargement of, or any addition to,any building or structure for use as or in connection with any commercial,industrial, manufacturing, processing, mining, transportation, distribution,storage, marine or environmental facility or improvement primarily for the useof one or more private parties. Any such special user project may include allappurtenances and incidental facilities such as land, headquarters or officefacilities, restaurant and lodging facilities, warehouses, distributioncenters, pollution control facilities, access roads, sidewalks, utilities,railway sidings, trucking and similar facilities, parking facilities,waterways, docks, wharves and other improvements necessary or convenient forships, tugboats, barges or other vessels or for the construction, maintenanceand operation of any building or structure, or addition thereto.

(b)        Bonds and notes may be sold to finance special user projectsirrespective of the interest limitations set forth in G.S. 24‑1.1, asamended, and successor provisions.

(c)        The bonds or notes of each issue of the Authority under thissection shall be special, limited obligations of the Authority payable solelyfrom such other revenues, income or assets of the Authority as the Authorityshall specifically assign or pledge and such funds, collateral and undertakingsas any private parties may assign or pledge therefor.

The financing agreement may provide the Authority with rights andremedies in the event of a default by the obligor thereunder including, withoutlimitation, reentry and repossession or leasing or sale or foreclosure of thespecial user project to others.

The Authority's interest in a special user project may be that ofowner, lessor, operator, lessee, conditional or installment vendor, mortgagor,mortgagee, secured party or otherwise, but the Authority need not have anyownership or possessory interest in the project, and if that of lessor, thelessee may have an option or an obligation to purchase the special user projectupon the expiration or termination of the lease.

(d)        Bonds and notes issued under the provisions of this sectionmay be secured by one or more agreements, including forecloseable deeds oftrust and other trust instruments, which may pledge and assign to the trusteeor the holders of its obligations the assets, revenues, and income provided forthe security of the bonds or notes, including proceeds from the sale of anyspecial user project, or part thereof, insurance proceeds and condemnationawards, and third‑party agreements, and may convey or mortgage theproject and other property and collateral to secure a bond issue.

The Authority may subordinate the bonds or notes or its rights, assets,revenues and income derived from any special user project to any prior,contemporaneous or future securities or obligations or lien, mortgage or othersecurity interest.

(e)        Notwithstanding any other provision of law, the Authoritymay agree that all contracts relating to the acquisition, construction,installation and equipping of the special user project shall be solicited,negotiated, awarded and executed by the private party or parties for which theAuthority is financing the special user project or their agents subject only tosuch approvals by the Authority as the Authority may require. The Authoritymay, out of the proceeds of bonds or notes, make advances to or reimburse suchprivate parties or such agents for all or a portion of the costs incurred inconnection with such contracts. The provisions of G.S. 143B‑463 of thisPart shall have no application to funds and moneys derived pursuant to thissection.

(f)         Repealed by Session Laws 2001‑218, s. 5. (1981, c. 856, s. 2; 2000‑169, s. 41; 2001‑218, s. 5; 2001‑487,s. 33.)