§ 159D-42. Operations of projects; agreements of sale on leases; conveyance of interest in projects. - North Carolina Statutes

§ 159D‑42. Operations of projects; agreements of sale on leases; conveyance of interest inprojects.

(a)        The agency may sell or lease any project to a participatinginstitution for operation and maintenance or lend money to any participatinginstitution to effectuate the purposes of this Article, under a loan agreementor an agreement of sale or lease in form and substance not inconsistent withthis Article. The loan agreement or agreement of sale or lease may includeprovisions that:

(1)        The participating institution shall, at its own expense,operate, repair and maintain the project covered by the agreement.

(2)        The purchase price payments to be made under the agreementof sale, the rent payable under the agreement of lease or the loan repaymentsunder the loan agreement shall in the aggregate be not less than an amountsufficient to pay all of the interest, principal and any redemption premium onthe bonds or notes issued by the agency to pay the cost of the project sold orleased or with respect to which the loan was made.

(3)        The participating institution shall pay all other costsincurred by the agency in connection with the providing of the project coveredby any agreement, except costs paid out of the proceeds of bonds or notes orotherwise, including insurance costs, the cost of administering the resolutionauthorizing the issuance of, or any trust agreement securing, the bonds ornotes and the fees and expenses of trustees, paying agents, attorneys,consultants, and others.

(4)        The loan agreement or the agreement of sale or lease shallterminate not earlier than the date on which all bonds and all otherobligations incurred by the agency in connection with the project covered bythe agreement are retired or provision for their retirement is made.

(5)        The obligation of the participating institution to make loanrepayments or purchase price payments or to pay rent shall not be subject tocancellation, termination or abatement by the participating institution untilthe bonds have been retired or provision has been made for their retirement.

(b)        If the agency has acquired a possessory or ownershipinterest in any project it has undertaken on behalf of a participatinginstitution, it shall promptly convey, without the payment of anyconsideration, all its right, title and interest in the project to thatparticipating institution upon the retirement or provision for the retirementof all bonds or notes issued and obligations incurred by the agency inconnection with that project. (1985 (Reg. Sess., 1986), c. 794, s. 8; 1998‑124, s. 8; 2000‑179,s. 2.)