§ 159-112. Limitations on details of debt instruments. - North Carolina Statutes

§ 159‑112.  Limitationson details of debt instruments.

In fixing the details ofproject development financing debt instruments, the governing body of theissuing unit of local government is subject to these restrictions anddirections:

(1)        The maturity dateshall not exceed the shorter of (i) the longest of the various maximum periodsof usefulness for the projects to be financed with debt instrument proceeds, asprescribed by the Local Government Commission pursuant to G.S. 159‑122,or (ii) the end of the thirtieth year after the effective date of thedevelopment financing district.

(2)        The first payment ofprincipal shall be payable not more than seven years after the date of the debtinstruments.

(3)        Any debt instrumentmay be made payable on demand or tender for purchase as provided in G.S. 159‑79,and any debt instrument may be made subject to redemption prior to maturity,with or without premium, on such notice, at such times, and with suchredemption provisions as may be stated. Interest on the debt instruments shallcease when the instruments have been validly called for redemption andprovision has been made for the payment of the principal of the instruments,any redemption, any premium, and the interest on the instruments accrued to thedate of redemption.

(4)        The debt instrumentsmay bear interest at such rates payable semiannually or otherwise, may be insuch denominations, and may be payable in such kind of money and in such placeor places within or without this State as the issuing unit may determine. (2003‑403, s. 2.)