§ 162A-77. District may assume sewerage system indebtedness of political subdivision; approval of voters; actions founded upon invalidity of election; tax to pay assumed indebtedness. - North Carolina Statutes

§ 162A‑77. District may assume sewerage system indebtedness of political subdivision;approval of voters; actions founded upon invalidity of election; tax to payassumed indebtedness.

A district may assume all outstanding indebtedness of any political subdivisionin the district lawfully incurred for paying all or any part of the cost of asewerage system, subject to approval thereof by a majority of the qualifiedvoters of the district voting at an election thereon. Any such election shallbe called and held in accordance with the provisions of the Local GovernmentFinance Act, insofar as the same may be made applicable, and the returns ofsuch election shall be canvassed and a statement of the result thereofprepared, recorded and published as provided in the Local Government FinanceAct. No right of action or defense founded upon the invalidity of the electionshall be asserted nor shall the validity of the election be open to question inany court upon any ground whatever, except in an action or proceeding commencedwithin 30 days after the publication of such statement of result. In the eventthat any such indebtedness of a political subdivision is assumed by thedistrict, there shall be annually levied and collected a tax ad valorem uponall the taxable property in the district sufficient to pay such assumedindebtedness and the interest thereon as the same become due and payable;provided, however, that such tax may be reduced by the amount of other moneysactually available for such purpose. Such tax shall be determined, levied andcollected in the manner provided by G.S. 162A‑71 and subject to theprovisions of said section.

Nothing herein shall prevent any political subdivision from levyingtaxes to provide for the payment of its debt service requirements as toindebtedness incurred for paying all or any part of the cost of a seweragesystem if such debt service requirements shall not have been otherwise providedfor. (1961, c. 795, s. 27;1973, c. 512, s. 5; c. 822, s. 4.)