§ 159B-15. Issuance of bonds. - North Carolina Statutes

§ 159B‑15. Issuance of bonds.

(a)        Each municipality and joint agency is hereby authorized toissue at one time or from time to time its bonds for the purpose of paying allor any part of the cost of any of the purposes herein authorized. The principalof, premium, if any, and the interest on bonds issued to pay the cost of aproject shall be payable solely from revenues. Bonds that are not issued to paythe cost of a project shall be payable from revenues, from property pledged assecurity for the bonds, or from both.

The bonds of each issue shall bear interest at such rate or rates asmay be determined or provided for by the Local Government Commission of NorthCarolina with the approval of the issuer. The bonds of each issue shall bedated and shall mature in such amounts and at such time or times, not exceeding50 years from their respective date or dates, as may be determined by thegoverning board of the issuer, and may be made redeemable before maturity atsuch price or prices and under such terms and conditions as may be fixed by thegoverning board of the issuer prior to the issuance of the bonds. The governingboard of the issuer shall determine the form and the manner of execution of thebonds, including any interest coupons to be attached thereto, and shall fix thedenomination or denominations of the bonds and the place or places of paymentof principal and interest, which may be at any bank or trust company within orwithout the State. In case any officer whose signature or a facsimile of whose signatureshall appear on any bonds or coupons shall cease to be such officer before thedelivery of such bond, such signature or such facsimile shall nevertheless bevalid and sufficient for all purposes the same as if he had remained in officeuntil such delivery. The governing board of the issuer may also provide for theauthentication of the bonds by a trustee or fiscal agent appointed by theissuer, or by an authenticating agent of any such trustee or fiscal agent. Thebonds may be issued in coupon or in fully registered form, or both, as thegoverning board of the issuer may determine, and provisions may be made for theregistration of any coupon bonds as to principal alone and also as to bothprincipal and interest, and for the reconversion into coupon bonds of any bondsregistered as to both principal and interest, and for the interchange ofregistered and coupon bonds. At the election of a joint agency, any bondsissued and sold in accordance with the provisions of this Chapter may bepurchased or otherwise acquired by the joint agency and held by it in lieu ofcancellation, and subsequently resold.

(a1)      Notwithstanding anything in this Chapter to the contrary, theLocal Government Commission of North Carolina and the issuer (i) may authorizeofficers or employees of either or both thereof to fix principal amounts,maturity dates, interest rates or methods of fixing interest rates, interestpayment dates, denominations, redemption rights of the issuer or holder, placesof payment of principal and interest, and purchase prices of any bonds, to selland deliver any bonds in whole or in part at one time or from time to time, andto fix other matters and procedures necessary to complete the transactionsauthorized, all subject to such limitations as may be prescribed by the LocalGovernment Commission with the approval of the issuer, (ii) may approveinsurance contracts, agreements for lines of credit, letters of credit,commitments to purchase bonds and any other transactions to provide security toassure, timely payment of bonds, (iii) may employ one or more persons or firmsto assist in the sale of the bonds and appoint one or more banks, trustcompanies or any dealer in bonds, within or without the State, as depositoryfor safekeeping and as agent for the delivery and payment of the bonds, and(iv) may provide for the payment of fees and expenses in connection with theforegoing either from the proceeds of the bonds or from other available funds.

(b)        The proceeds of the bonds of each issue shall be used solelyfor the purposes for which such bonds have been issued, and shall be disbursedin such manner and under such restrictions, if any, as the governing board ofthe issuer may provide in the resolution authorizing the issuance of such bondsor in any trust agreement securing the same. The municipality or joint agencymay issue interim receipts or temporary bonds, with or without coupons,exchangeable for definitive bonds when such bonds shall have been executed andare available for delivery. The municipality or joint agency may also providefor the replacement of any bonds which shall have become mutilated or shallhave been destroyed or lost.

(c)        Bonds may be issued under the provisions of this Chapterwithout obtaining, except as otherwise expressly provided in G.S. 159B‑24of this Chapter, the consent of the State or of any political subdivision, orof any agency, commission or instrumentality of either thereof, and without anyother approvals, proceedings or the happening of any conditions or things otherthan those approvals, proceedings, conditions or things which are specificallyrequired by this Chapter and the provisions of the resolution authorizing theissuance of such bonds or the trust agreement securing the same. (1975, c. 186, s. 1; 1983, c. 574, ss. 7, 7.1; 1985,c. 266, ss. 2, 3; 1991, c. 513, s. 3; 1995, c. 412, s. 11.)