§ 157-39.8. Agreement to sell as security for obligations to federal government. - North Carolina Statutes

§ 157‑39.8. Agreement to sell as security for obligations to federal government.

In any contract or amendatory or superseding contract for a loan andannual contributions heretofore or hereafter entered into between a housingauthority and the federal government with respect to any housing projectundertaken by said housing authority, any such housing authority is authorizedto make such covenants (including covenants with holders of bonds issued bysuch authority for purposes of the project involved), and to confer upon thefederal government such rights and remedies, as said housing authority deemsnecessary to assure the fulfillment of the purposes for which the project wasundertaken. In any such contract, the housing authority may, notwithstanding anyother provisions of law, agree to sell and convey the project (including alllands appertaining thereto) to which such contract relates to the federalgovernment upon the occurrence of such conditions, or upon such defaults onbonds for which any of the annual contributions provided in said contract arepledged, as may be prescribed in such contract, and at a price (which mayinclude the assumption by the federal government of the payment, when due, ofthe  principal of and interest on outstanding bonds of the housing authorityissued for purposes of the project involved) determined as prescribed thereinand upon such other terms and conditions as are therein provided. Any suchhousing authority is hereby authorized to enter into such supplementary contracts,and to execute such conveyances, as may be necessary to carry out theprovisions hereof. Notwithstanding any other provisions of law, any contractsor supplementary contracts or conveyances made or executed pursuant to theprovisions of this section shall not be or constitute a mortgage within themeaning or for the purposes of any of the laws of the State. (1943, c. 636, s. 5.)