§ 159-72. Purposes for which funding and refunding bonds may be issued; when such bonds may be issued. - North Carolina Statutes

Part 3. Funding and Refunding Bonds.

§ 159‑72.  Purposes for which funding andrefunding bonds may be issued; when such bonds may be issued.

A unit of local government may issue funding and refunding  bonds underthis Article for the purposes listed in G.S. 159‑48(a)(4), (5), (6), or(7). Funding bonds may be issued if the debt, judgment, or other obligation tobe paid is payable at the time of the passage of the bond order or within oneyear thereafter. Refunding bonds may be issued at any time prior to the finalmaturity of the debt or obligation to be refunded. The proceeds from the saleof any refunding bonds shall be applied only as follows: either (i) to theimmediate payment and retirement of the obligations being refunded or (ii) ifnot required for the immediate payment of the obligations being refunded suchproceeds shall be deposited in trust to provide for the payment and retirementof the obligations being refunded, and to pay any expenses incurred inconnection with such refunding, but provision may be made for the pledging anddisposition of any amounts in excess of the amounts required for such purposes,including, without limitation, provision for the pledging of any such excess tothe payment of the principal of and interest on any issue or series ofrefunding bonds issued pursuant to G.S. 159‑78. Money in any such trustfund may be invested in (i) direct obligations of the United States government,or (ii) obligations the principal of and interest on which are guaranteed bythe United States government, or (iii) to the extent then permitted by law inobligations of any agency or instrumentality of the United States government,or (iv) in certificates of deposit issued by a bank or trust company located inthe State of North Carolina if such certificates shall be secured by a pledgeof any of said obligations described in (i), (ii), or (iii) above having anaggregate market value, exclusive of accrued interest, equal at least to theprincipal amount of the certificates so secured. Nothing herein shall beconstrued as a limitation on the duration of any deposit in trust for theretirement of obligations being refunded but which shall not have matured andwhich shall not be presently redeemable or, if presently redeemable, shall nothave been called for redemption.

The principal amount of refunding bonds issued pursuant to thissection, together with the principal amount of refunding bonds, if any, issuedunder G.S. 159‑78 in conjunction with refunding bonds issued pursuant tothis section, shall not exceed the amount set forth in G.S. 159‑78.

Except as expressly modified in this Part, funding and refunding bondsissued under the provisions of this Part shall be subject to the limitationsand procedures set out in Parts 1 and 2 of this Article. (1917, c. 138, s. 16; 1919, c. 178, s. 3(16); C.S., s.2937; 1921, c. 8, s. 1; Ex. Sess. 1921, c. 106, s. 1; 1927, c. 81, s. 8; 1929,c. 171, s. 1; 1931, c. 60, ss. 48, 54; 1933, c. 257, ss. 2‑4; c. 259, ss.1, 2; 1935, c. 302, ss. 1, 2; c. 484; 1939, c. 231, ss. 1, 2(c), 4(b); 1941, c.147; 1943, c. 13; 1945, c. 403; 1947, cc. 520, 931; 1949, c. 354; c. 766, s. 3;c. 1270; 1953, c. 1065, s. 1; 1957, c. 266, s. 1; c. 856, s. 1; c. 1098, s. 16;1959, c. 525; c. 1250, s. 2; 1961, c. 293; c. 1001, s. 2; 1965, c. 307, s. 2;1967, c. 987, s. 2; c. 1001, s. 1; 1971, c. 780, s. 1; 1973, c. 494, s. 11;1977, c. 201, s. 1.)