§ 159-139. Destruction of cancelled bonds, notes, and coupons. - North Carolina Statutes

§ 159‑139.  Destruction of cancelled bonds,notes, and coupons.

(a)        All cancelled bonds, notes, and interest coupons of a unitmay be destroyed in one of the following ways, in the discretion of thegoverning board:

(1)        Method 1. – The finance officer shall make an entry in theofficial records of the unit, which may include the register for the bonds,notes, and coupons, showing:

a.         With respect to bonds and notes, the purpose of issuance,the date of issue, serial numbers (if any), denomination, maturity date, andtotal principal amount.

b.         With respect to coupons, the purpose of issue and date ofthe bonds to which the coupons appertain, the maturity date of the coupons and,as to each maturity date, the denomination, quantity, and total amount ofcoupons.

After this entry has been made, the paid bonds, notes,and coupons shall be destroyed or marked cancelled in the manner determined bythe finance officer, who shall make an entry of the destruction or cancellationin the official records of the unit. Cancelled bonds, notes, or coupons shallnot be destroyed until after one year from the date of payment.

(2)        Method 2. – The governing board may contract with the bank,trust company or other person acting as fiscal agent for a bond issue for thedestruction of bonds and interest coupons which have been cancelled by thefiscal agent. The contract shall require that the fiscal agent give the unit awritten certificate of each destruction containing the same informationrequired by Method 1 to be entered in the record of destroyed bonds andcoupons. The certificates shall be filed among the permanent records of thefinance officer's office. Cancelled bonds or coupons shall not be destroyeduntil one year from the date of payment.

(b)        The provisions of G.S. 121‑5 and G.S. 132‑3 donot apply to paid bonds, notes, and coupons. The information required to berecorded prior to destruction under either Method 1 or Method 2 may as analternative, be shown by photocopying, microfilming or other similar method ofrecording the information by directly reproducing the cancelled documents. (1941, cc. 203, 293; 1961, c. 663, ss. 1, 2; 1963, c. 1173, ss. 1, 2;1971, c. 780, s. 1; 1973, c. 494, s. 29; 1983, c. 322, ss. 7, 8; 2005‑238,s. 9.)