§ 159-105. Approval of application by Commission. - North Carolina Statutes

§ 159‑105.  Approval ofapplication by Commission.

(a)        In determiningwhether to approve a proposed project development financing debt instrumentissue, the Commission may inquire into and consider any matters that itconsiders relevant to whether the issue should be approved, including:

(1)        Whether the projectsto be financed from the proceeds of the project development financing debtinstrument issue are necessary to secure significant new project developmentfor a development financing district.

(2)        Whether the proposedprojects are feasible. In making this determination, the Commission mayconsider any additional security such as credit enhancement, insurance, orguaranties.

(3)        The unit of localgovernment's debt management procedures and policies.

(4)        Whether the unit isin default in any of its debt service obligations.

(5)        Whether the privatedevelopment forecast in the development financing plan would likely occurwithout the public project or projects to be financed by the projectdevelopment financing debt instruments.

(6)        Whether taxes on theincremental valuation accruing to the development financing district, togetherwith any other revenues available under G.S. 159‑110, will be sufficientto service the proposed project development financing debt instruments.

(7)        The ability of theCommission to market the proposed project development financing debtinstruments at reasonable rates of interest.

(b)        The Commissionshall approve the application if, upon the information and evidence itreceives, it finds all of the following:

(1)        The proposed projectdevelopment financing debt instrument issue is necessary to secure significantnew economic development for a development financing district.

(2)        The amount of theproposed project development financing debt is adequate and not excessive forthe proposed purpose of the issue.

(3)        The proposedprojects are feasible. In making this determination, the Commission mayconsider any additional security such as credit enhancement, insurance, orguaranties.

(4)        The unit of localgovernment's debt management procedures and policies are good, or thatreasonable assurances have been given that its debt will henceforth be managedin strict compliance with law.

(5)        The privatedevelopment forecast in the development financing plan would not be likely tooccur without the public projects to be financed by the project developmentfinancing debt instruments.

(6)        The proposed projectdevelopment financing debt instruments can be marketed at reasonable interestcost to the issuing unit.

(7)        The issuing unithas, pursuant to G.S. 160A‑515.1 or G.S. 158‑7.3, adopted adevelopment financing plan for the development financing district for which theinstruments are to be issued. (2003‑403, s. 2.)