§ 159-84. Authorization of revenue bonds. - North Carolina Statutes

§ 159‑84. Authorization of revenue bonds.

The State and each municipality is hereby authorized to issue itsrevenue bonds in such principal amount as may be necessary to providesufficient moneys for the acquisition, construction, reconstruction, extension,betterment, improvement, or payment of the cost of one or more revenue bondprojects, including engineering, inspection, legal and financial fees andcosts, working capital, interest on the bonds or notes issued in anticipationthereof during construction and, if deemed advisable by the State or amunicipality,  as the case may be, for a period not exceeding two years afterthe estimated date of completion of construction, establishment of debt servicereserves, and all other expenditures of the State or the municipality, as thecase may be, incidental and necessary or convenient thereto.

Subject to agreements with the holders of its revenue bonds, the Stateor each municipality, as the case may be, may issue further revenue bonds andrefund outstanding revenue bonds whether or not they have matured. Revenuebonds may be issued partly for the purpose of refunding outstanding revenuebonds and partly for any other purpose under this Article. Revenue bonds issuedto refund outstanding revenue bonds shall be issued under this Article and notArticle 4 of this Chapter or any other law.

Refunding bonds may be issued at any time prior to the final maturityof the debt or obligation to be refunded. The proceeds from the sale of anyrefunding bonds shall be applied only as follows: either, (i) to the immediatepayment and retirement of the obligations being refunded or (ii) if notrequired 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 or [of]refunding 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,(iv) certificates of deposit issued by a bank or trust company located in theState of North Carolina if such certificates shall be secured by a pledge ofany of said obligations described in (i), (ii), or (iii) above having anyaggregate 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. (1953, c. 692; 1969, c. 1118, s. 4; 1971, c. 780, s.1; 1977, c. 201, s. 3; 1983, c. 554, s. 5.)