§ 159-163. Security of revenue bond anticipation notes. - North Carolina Statutes

§ 159‑163. Security of revenue bond anticipation notes.

Notes issued in anticipation of the sale of revenue bonds are herebydeclared special obligations of the issuing unit. Neither the credit nor thetaxing power of the issuing unit may be pledged for the payment of notes issuedin anticipation of the sale of revenue bonds, and no holder of a revenue bondanticipation note shall have the right to compel the exercise of the taxingpower by the issuing unit or the forfeiture of any of its property in connectionwith any default thereon. Notes issued in anticipation of the sale of revenuebonds shall be secured, to the extent and as provided in the resolutionauthorizing the issuance of such notes, by a pledge, charge, and lien upon theproceeds of the revenue bonds in anticipation of the sale of which such notesare issued and upon the revenues securing such revenue bonds; provided,however, that such notes shall be payable as to both principal and interestfrom such revenues if not paid from the proceeds of such revenue bonds orotherwise paid. The provisions of G.S. 159‑90(b) shall apply to revenuebond anticipation notes as well as to revenue bonds. (1971, c. 780, s. 1; 1979, c. 428; 1985, c. 265, s.2.)