§ 159-36. Failure of local government to levy debt service taxes or provide for payment of debt. - North Carolina Statutes

§ 159‑36.  Failureof local government to levy debt service taxes or provide for payment of debt.

(a)        If any local government or public authority fails or refusesto levy taxes or allocate other revenues in an amount sufficient to meet allinstallments of principal and interest falling due on its debt during thebudget year, or to adequately maintain its sinking funds, the Commission shallenter an order directing and commanding the governing board of the localgovernment or public authority to enact a budget ordinance levying thenecessary taxes or raising the necessary revenue by whatever means are legallyavailable. If the governing board shall fail or refuse to comply with theCommission's order within 10 days, the order shall have the same legal force andeffect as if the actions therein commanded had been taken by the governingboard, and the appropriate officers and employees of the local government orpublic authority shall proceed to collect the tax levy or implement the planfor raising the revenue to the same extent as if such action had beenauthorized and directed by the governing board. Any officer, employee, ormember of the governing board of any local government or public authority whowillfully fails or refuses to implement an order of the Local GovernmentCommission issued pursuant  to this section forfeits his office or position.

(b)        This section does not apply to contractual obligationsundertaken by a unit of local government in a debt instrument issued pursuantto Chapter 159G of the General Statutes unless such debt instrument is securedby a pledge of the faith and credit of the unit of local government. (1971, c. 780, s. 1; 1987, c. 796, s. 3(8).)