§ 159-52. Approval of application by Commission. - North Carolina Statutes

§ 159‑52.  Approvalof application by Commission.

(a)        In determining whether a proposed bond issue shall beapproved, the Commission may consider:

(1)        Whether the project to be financed from the proceeds of thebond issue is necessary or expedient.

(2)        The nature and amount of the outstanding debt of theissuing  unit.

(3)        The unit's debt management procedures and policies.

(4)        The unit's tax and special assessments collection record.

(5)        The unit's compliance with the Local Government Budget andFiscal Control Act.

(6)        Whether the unit is in default in any of its debt serviceobligations.

(7)        The unit's present tax rates, and the increase in tax rate,if any, necessary to service the proposed debt.

(8)        The unit's appraised and assessed value of property subjectto taxation.

(9)        The ability of the unit to sustain the additional taxesnecessary to service the debt.

(10)      The ability of the Commission to market the proposed bonds atreasonable interest rates.

(11)      If the proposed issue is for a utility or public serviceenterprise, the probable net revenues of the project to be financed and theextent to which the revenues of the utility or enterprise, after addition ofthe revenues of the project to be financed, will be sufficient to service theproposed debt.

(12)      Whether the amount of the proposed debt will be adequate to accomplish the purpose for which it is to be incurred.

TheCommission may inquire into and give consideration to any other matters whichit may believe to have a bearing on whether the issue should be approved.

(b)        The Commission shall approve the application if, upon theinformation and evidence it receives, it finds and determines:

(1)        That the proposed bond issue is necessary or expedient.

(2)        That the amount proposed is adequate and not excessive forthe proposed purpose of the issue.

(3)        That the unit's debt management procedures and policies aregood, or that reasonable assurances have been given that its debt willhenceforth be managed in strict compliance with law.

(4)        That the increase in taxes, if any, necessary to servicethe  proposed debt will not be excessive.

(5)        That the proposed bonds can be marketed at reasonable ratesof interest.

If the Commission tentatively decides to deny the application becauseit is of the opinion that any one or more of these conclusions cannot besupported from the information presented to it, it shall so notify the unitfiling the application. If the unit so requests, the Commission shall hold apublic hearing on the application at which time any interested persons shall beheard. The Commission may appoint a hearing officer to conduct the hearing, andto present a summary of the testimony and his recommendations for theCommission's consideration. (1931, c. 60, ss. 12, 13; 1971, c. 780, s. 1.)