§ 63A-13. Financing agreements. - North Carolina Statutes

§63A‑13.  Financing agreements.

(a)        Every financingagreement shall contain provisions ensuring all of the following:

(1)        That the amountspayable under the financing agreement are sufficient to pay, when due, theprincipal of, redemption premium, if any, and interest on the bonds issued topay the costs of the special user project.

(2)        That the operatorpays all costs incurred by the Authority in connection with the financing andadministration of the special user project, except costs paid out of the proceedsof bonds or otherwise, including, but without limitation, insurance costs, thecost of administering the financing agreement and the security document, andthe fees and expenses of the fiscal agent or trustee, paying agents, attorneys,consultants, and others.

(3)        That the operatorpays all the costs and expenses of operation, maintenance, and upkeep of thespecial user project.

(4)        That the operator'sobligation to provide for the payment of the bonds in full is not subject tocancellation, termination, or abatement until the payment of the bonds orprovision for their payment is made.

(b)        The financingagreement, if in the nature of a lease agreement, shall either provide that theobligor shall have an option to purchase, or require that the obligor purchase,the special user project upon the expiration or termination of the financingagreement subject to the condition that payment in full of the principal of,and the interest and any redemption premium on, the bonds, or provisiontherefor, shall have been made.

(c)        The financingagreement may provide the Authority with rights and remedies in the event of adefault by the obligor including, without limitation, any one or more of thefollowing:

(1)        Acceleration of allamounts payable under the financing agreement.

(2)        Reentry andrepossession of the special user project.

(3)        Termination of thefinancing agreement.

(4)        Leasing or sale offoreclosure of the special user project to others.

(5)        Taking whateveractions at law or in equity may appear necessary or desirable to collect theamounts payable under, and to enforce covenants made in, the financingagreement.

(d)        The Authority'sinterest in a special user project under a financing agreement may be that ofowner, lessor, lessee, conditional or installment vendor, mortgagor, mortgagee,secured party, or otherwise, but the Authority need not have any ownership orpossessory interest in the special user project.

(e)        The Authority mayassign all or any of its rights and remedies under the financing agreement tothe trustee or the bondholders under a security document.

(f)         The financingagreement may contain additional provisions as in the determination of theBoard are necessary or convenient to effectuate the purposes of this Chapter.When, as provided in G.S. 63A‑9 and G.S. 63A‑11, the LocalGovernment Commission approves the issuance of bonds by the Authority, theCommission shall also approve all financing agreements and security documents. (1991, c. 749, s. 1; 1997‑456, s. 27.)