§ 159-162. Security of general obligation bond anticipation notes. - North Carolina Statutes

§ 159‑162. Security of general obligation bond anticipation notes.

The faith and credit of the issuing unit are hereby pledged for thepayment of each note issued in anticipation of the sale of general obligationbonds according to its terms, and the power and obligation of the issuing unitto levy taxes and raise other revenues for the prompt payment of such notesshall be unrestricted as to rate or amount, notwithstanding any otherprovisions of law. The proceeds of each general obligation bond issue are alsohereby pledged for the payment of any notes issued in anticipation of the salethereof, and any such notes shall be retired from the proceeds of the bonds asthe first priority. In the discretion of the governing board, notes issued inanticipation of the sale of general obligation bonds may be paid from currentrevenues or other funds instead of from the bond proceeds, but if this is done,the bond order shall be amended to reduce the aggregate authorized principalamount by the amount of the bond anticipation notes and accrued interestthereon. Such an amendment need not be published and shall take effect upon itspassage. (1971, c. 780, s.1.)