North Carolina Statutes

Chapter 159 Local Government Finance

Article 1 - Short Title and Definitions.

  • § 159-1   Short title and definitions
    (a) This Chapter may be cited as "The Local Government Finance Act." (b) The words and phrases defined in this section have the meanings indicated...
  • § 159-2   Computation of time
    (a) Notwithstanding any other provisions of law, whenever in this Chapter an act is to be done within a given period of time, the period...

Article 2 - Local Government Commission.

  • § 159-3   Local Government Commission established
    (a) The Local Government Commission consists of nine members. The State Treasurer, the State Auditor, the Secretary of State, and the Secretary of Revenue each...
  • § 159-4   Executive committee; appeal
    (a) The State Auditor, the State Treasurer, the Secretary of State, and the Secretary of Revenue shall constitute the executive committee of the Local Government...
  • § 159-5   Secretary and staff of the Commission
    The chairman shall appoint a secretary of the Commission, and may appoint such other deputies and assistants as may be necessary, who shall be responsible...
  • § 159-6   Fees of the Commission
    (a) The Commission may charge and collect fees for services rendered and for all expenses incurred by the Commission in connection with approving or denying...

Article 3 - The Local Government Budget and Fiscal Control Act.

Article 4 - Local Government Bond Act.

Article 5 - Revenue Bonds.

  • § 159-80   Short title; repeal of local acts
    (a) This Article may be cited as "The State and Local Government Revenue Bond Act." (b) It is the intent of the General Assembly by...
  • § 159-81   Definitions
    The words and phrases defined in this section shall have the meanings indicated when used in this Article: (1) "Municipality" means a county, city, town,...
  • § 159-82   Purpose
    The purpose of this Article is to establish a standard, uniform procedure for the financing by a municipality of revenue bond projects through the issuance...
  • § 159-83   Powers
    (a) In addition to the powers they may now or hereafter have, the State and each municipality shall have the following powers, subject to the...
  • § 159-84   Authorization of revenue bonds
    The State and each municipality is hereby authorized to issue its revenue bonds in such principal amount as may be necessary to provide sufficient moneys...
  • § 159-85   Application to Commission for approval of revenue bond issue; preliminary conference; acceptance of application
    (a) Neither the State nor a municipality may issue revenue bonds under this Article unless the issue is approved by the Commission. The State Treasurer...
  • § 159-86   Approval of application by Commission
    (a) In determining whether a proposed revenue bond issue shall be approved, the Commission may consider: (1) Whether the project to be financed from the...
  • § 159-87   Order approving or denying the application
    (a) After considering an application the Commission shall enter its order either approving or denying the application. An order approving an issue shall not be...
  • § 159-88   Adoption of revenue bond order
    (a) At any time after the Commission approves an application for the issuance of revenue bonds, (i) in the case of the State, the Council...
  • § 159-89   Special covenants
    A revenue bond order or a trust agreement securing revenue bonds may be between the State or the issuing municipality and a bank or trust...
  • § 159-90   Limitations on details of bonds; additional provisions
    (a) In fixing the details of revenue bonds, the State or the issuing municipality, as the case may be, shall be subject to the following...
  • § 159-91   Lien of revenue bonds
    (a) All revenue bonds issued under this Article shall be equally and ratably secured by a pledge, charge, and lien upon revenues provided for in...
  • § 159-92   Status of revenue bonds under Uniform Commercial Code
    Whether or not the revenue bonds and interest coupons appertaining thereto are of such form and character as to be investment securities under Article 8...
  • § 159-93   Agreement of the State
    The State of North Carolina does pledge to and agree with the holders of any revenue bonds or revenue bond anticipation notes heretofore or hereafter...
  • § 159-94   Limited liability
    (a) Revenue bonds shall be special obligations of the State or the municipality issuing them. The principal of and interest on revenue bonds shall not...
  • § 159-95   Approval of State agencies
    The general design and plan of any revenue bond project undertaken for water systems or facilities or sewage disposal systems or facilities shall be subject...
  • § 159-96   Limitation on extraterritorial operation of enterprises financed by revenue bonds
    (a) Each utility or public service enterprise listed in G.S. 159‑81(3), if financed wholly or partially by revenue bonds issued under this Article, shall be...
  • § 159-97   Taxes for supplementing revenue bond projects
    (a) For the purpose of supplementing the revenues of a revenue bond project, as defined in this section, any county or city may covenant with,...
  • § 159-98   Reserved for future codification purposes

Article 5A - Capital Appreciation Bonds.

  • § 159-99   Definition; terms and conditions
    (a) Capital Appreciation Bond Defined. For purposes of this Article, the term "capital appreciation bond" means a bond that meets all of the following conditions:...
  • § 159-100   Authorization
    (a) Revenue Bond Act. The State and local governmental units are authorized to issue capital appreciation bonds pursuant to the provisions of The State and...

Article 6 - Project Development Financing Act.

Article 7 - Issuance and Sale of Bonds.

  • § 159-120   Definitions
    As used in this Article, unless the context clearly requires another meaning, the words "unit" or "issuing unit" mean "unit of local government" as defined...
  • § 159-121   Coupon or registered bonds to be issued
    Bonds may be issued as (i) coupon bonds payable to bearer, (ii) coupon bonds registrable as to principal only or as to both principal and...
  • § 159-122   Maturities of bonds
    (a) (For effective date, see note) Except as provided in this subsection, the last installment of each bond issue shall mature not later than the...
  • § 159-123   Sale of bonds by sealed bids; private sales
    (a) Bonds issued by units of local government shall be sold by the Local Government Commission after advertisement and upon sealed bids, except as otherwise...
  • § 159-124   Date of sale; notice of sale and blank proposal
    The date of sale shall be fixed by the secretary in consultation with the issuing unit. Prior to the sale date, the secretary shall take...
  • § 159-125   Bid instructions; bid deposit
    (a) Except for revenue bonds and project development financing debt instruments, no bid for less than ninety‑eight percent (98%) of the face value of the...
  • § 159-126   Rejection of bids
    No legal bid may be rejected unless all bids are rejected. All bids shall be rejected upon objection to award by an authorized representative of...
  • § 159-127   Award of bonds
    All bids received pursuant to a public sale shall be opened in public on a date and at a time and place to be specified...
  • § 159-128   Makeup and formal execution of bonds; temporary bonds
    The governing board of the issuing unit shall determine the form and manner of execution of the bonds, including any interest coupons to be attached...
  • § 159-129   Obligations of units certified by Commission
    Each bond or bond anticipation note that is represented by an instrument shall bear on its face or reverse a certificate signed by the secretary...
  • § 159-130   Record of issues kept
    The secretary shall make a record of all bonds and notes issued under this Subchapter, showing the name of the issuing unit, the amount, date,...
  • § 159-131   Contract for services to be approved by Commission
    Any contract or agreement made by any unit with any person, firm, or corporation for services to be rendered in drafting forms of proceedings for...
  • § 159-132   State Treasurer to deliver bonds and remit proceeds
    When the bonds are executed, they shall be delivered to the State Treasurer who shall deliver them to the order of the purchaser and collect...
  • § 159-133   Suit to enforce contract of sale
    The Commission may enforce in any court of competent jurisdiction any contract or agreement made by the Commission for the sale of any bonds or...
  • § 159-134   Fiscal agents
    An issuing unit may employ a bank or trust company either within or without this State as fiscal agent for the payment of installments of...
  • § 159-135   Application of proceeds
    After payment of any notes issued in anticipation of the sale of the bonds and after payment of the cost of preparing, marketing, and issuing...
  • § 159-136   Issuing unit to make and report debt service payments
    The finance officer of each unit having outstanding bonds or notes shall remit the funds necessary for the payment of maturing installments of principal and...
  • § 159-137   Lost, stolen, defaced, or destroyed bonds or notes
    (a) If lost, stolen, or completely destroyed, any bond, note, or coupon may be reissued in the same form and tenor upon the owner's furnishing...
  • § 159-138   Cancellation of bonds and notes
    Each bond or note and coupon shall be cancelled when (i) it is paid, or (ii) it is acquired by the issuing unit in any...
  • § 159-139   Destruction of cancelled bonds, notes, and coupons
    (a) All cancelled bonds, notes, and interest coupons of a unit may be destroyed in one of the following ways, in the discretion of the...
  • § 159-140   Bonds or notes eligible for investment
    Subject to the provisions of G.S. 159‑30, bonds or notes issued under the provisions of this Chapter are hereby made securities in which all public...
  • § 159-141   Terms and conditions of sale
    Notwithstanding the foregoing, any bond of the State may be sold upon such terms and conditions, at such interest rate or rates, for such price...
  • § 159-142 through 159-147   Reserved for future codification purposes

Article 8 - Financing Agreements and Other Financing Arrangements.

Article 9 - Bond Anticipation, Tax, Revenue and Grant Anticipation Notes.

  • § 159-160   Definitions
    As used in this Part, the words "unit" or "issuing unit" means "unit of local government" as defined in G.S. 159‑44 or G.S. 159‑102, "municipality"...
  • § 159-161   Bond anticipation notes
    At any time after a bond order has taken effect and with the approval of the Commission, the issuing unit may borrow money for the...
  • § 159-162   Security of general obligation bond anticipation notes
    The faith and credit of the issuing unit are hereby pledged for the payment of each note issued in anticipation of the sale of general...
  • § 159-163   Security of revenue bond anticipation notes
    Notes issued in anticipation of the sale of revenue bonds are hereby declared special obligations of the issuing unit. Neither the credit nor the taxing...
  • § 159-163.1   Security of project development financing debt instrument anticipation notes
    Notes issued in anticipation of the sale of project development financing debt instruments are special obligations of the issuing unit. Except as provided in G.S....
  • § 159-164   Form of notes to be issued
    Bond anticipation loans shall be evidenced by negotiable notes in bearer form or by certificated or uncertificated registered public obligations pursuant to the Registered Public...
  • § 159-165   Sale and delivery of bond anticipation notes
    (a) Bond anticipation notes of a municipality, including special obligation bond anticipation notes issued pursuant to Chapter 159I of the General Statutes, shall be sold...
  • § 159-166 through 159-167   Reserved for future codification purposes
  • § 159-168   "Unit" defined
    For purposes of this Part, "unit," "unit of local government," or "issuing unit" mean a "unit of local government" as defined by G.S. 159‑7(b) and...
  • § 159-169   Tax anticipation notes
    (a) A unit of local government having the power to levy taxes is authorized to borrow money for the purpose of paying appropriations made for...
  • § 159-170   Revenue anticipation notes
    (a) Authorization; Term. A unit of local government or a nonprofit corporation or association operating or leasing a public hospital as defined in G.S. 159‑39,...
  • § 159-171   Grant anticipation notes
    (a) A unit of local government is authorized to borrow money for the purpose of paying appropriations made for a capital project in anticipation of...
  • § 159-172   Authorization and issuance of notes
    (a) Notes issued under this Part shall be authorized by resolution of the governing board of the issuing unit. The resolution shall fix the maximum...
  • § 159-173 through 159-175   Reserved for future codification purposes

Article 10 - Assistance for Defaulting Units in Refinancing Debt.

Article 11 - Enforcement of Chapter.

Article 12 - Borrowing by Development Authorities Created by General Assembly.

  • § 159-188   Borrowing authority
    A development authority created as a body corporate and politic by an act of the General Assembly, and having as its purpose to stimulate, foster,...

Article 13 - Interest Rate Swap Agreements for Governmental Units.

  • § 159-193   Definitions
    The following definitions apply in this Article: (1) Governmental unit. Any of the following: a. A unit of local government as defined in G.S. 159‑44....
  • § 159-194   Swap agreements
    (a) Subject to the provisions of this Article, a governmental unit may from time to time purchase, enter into, modify, amend, or terminate one or...
  • § 159-195   Nature of duties of a governmental unit under a swap agreement
    The duty of a governmental unit to make the payments required and to perform the other duties of the governmental unit under a swap agreement...
  • § 159-196   Approval by Commission
    (a) Approval Required. If either of the following conditions is met, a governmental unit shall not enter into a swap agreement unless the Commission first...
  • § 159-197   Additional method
    This Article provides an additional and alternative method for the doing of the things authorized by it and is supplemental to powers conferred by other...
  • § 159-198   Severability
    If any provision of this Article or its application is held invalid, the invalidity does not affect other provisions or applications of this Article that...
  • § 159-199   Validation of preexisting swap agreements
    All proceedings taken by the governing bodies of governmental units in connection with the authorization of swap agreements and all swap agreements entered into by...
  • § 159-200   Liberal construction
    This Article, being necessary for the prosperity and welfare of the State and its inhabitants, shall be liberally construed to effect its purposes. (2003‑388, s.
  • § 159-201 through 159-209   Reserved for future codification purposes

Article 14 - Borrowing by Airport Authorities.

  • § 159-210   Borrowing authority
    Whenever an airport authority is authorized by general or local act to erect and construct improvements and facilities and to lease these improvements and facilities,...