§ 159D-11. Financing agreements. - North Carolina Statutes

§ 159D‑11. Financing agreements.

(a)        Every financing agreement shall provide that:

(1)        Repealed by Session Laws 1987, c. 517, s. 7.

(2)        The amounts payable under the financing agreement shall besufficient to pay all of the principal of and interest and redemption premium,if any, and interest on the bonds issued by the agency to pay the cost of theproject as they respectively become due;

(3)        The obligor shall pay all costs incurred by the agency inconnection with the financing and administration of the project, except as maybe paid out of the proceeds of bonds or otherwise, including, but withoutlimitation, insurance costs, the cost of administering the financing agreementand the security document and the fees and expenses of the fiscal agent or trustee,paying agents, attorneys, consultants and others;

(4)        The obligor shall pay all the costs and expenses ofoperation, maintenance and upkeep of the project; and

(5)        The obligor's obligation to provide for the payment of thebonds in full shall not be subject to cancellation, termination or abatementuntil payment of the bonds or provision for payment has been made.

(b)        The financing agreement may be in the nature of:

(1)        A sale and leaseback,

(2)        A lease purchase,

(3)        A conditional sale,

(4)        An installment sale,

(5)        A secured or unsecured loan,

(6)        A loan and mortgage, or

(7)        Another similar transaction.

(c)        The financing agreement, if in the nature of a leaseagreement, shall either provide that the obligor has an option to purchase, orrequire that the obligor purchase, the project upon the expiration ortermination of the financing agreement subject to the condition that payment infull of the principal of, and the interest and any redemption premium on, thebonds, or provision for payment has been made.

(d)        The financing agreement may provide the agency with rightsand remedies in the event of a default by the obligor under it including,without limitation, any one or more of the following:

(1)        Acceleration of all amounts payable under the financing agreement;

(2)        Reentry and repossession of the project;

(3)        Termination of the financing agreement;

(4)        Leasing or sale or foreclosure of the project to others; and

(5)        Taking whatever actions at law or in equity may appearnecessary or desirable to collect the amounts payable under, and to enforcecovenants made in, the financing agreement.

(e)        The agency's interest in a project under a financingagreement may be that of owner, lessor, lessee, conditional or installmentvendor, mortgagor, mortgagee, secured party or otherwise, but the agency neednot have any ownership or possessory interest in the project.

(f)         The agency may assign all or any of its rights and remediesunder the financing agreement to the trustee or bondholders under the securitydocument.

(g)        The financing agreement may contain any additionalprovisions the agency considers necessary or convenient to effectuate thepurposes of this Article. (1977, 2nd Sess., c. 1198, s. 1; 1987, c. 517, s. 7; 2000‑179, s.2.)