North Carolina General Statutes Chapter 159 Local Government Finance

Article 1 - Short Title and Definitions.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...

Article 2 - Local Government Commission.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...

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

  • N.C. Gen. Stat. § 159-7.   Short title; definitions; local acts superseded
    (a) This Article may be cited as "The Local Government Budget and Fiscal Control Act." (b) The words and phrases defined in this section...
  • N.C. Gen. Stat. § 159-8.   Annual balanced budget ordinance
    (a) Each local government and public authority shall operate under an annual balanced budget ordinance adopted and administered in accordance with this Article. A...
  • N.C. Gen. Stat. § 159-9.   Budget officer
    Each local government and public authority shall appoint a budget officer to serve at the will of the governing board. In counties or cities...
  • N.C. Gen. Stat. § 159-10.   Budget requests
    Before April 30 of each fiscal year (or an earlier date fixed by the budget officer), each department head shall transmit to the budget...
  • N.C. Gen. Stat. § 159-11.   Preparation and submission of budget and budget message
    (a) Upon receipt of the budget requests and revenue estimates and the financial information supplied by the finance officer and department heads, the budget...
  • N.C. Gen. Stat. § 159-12.   Filing and publication of the budget; budget hearings
    (a) On the same day that he submits the budget to the governing board, the budget officer shall file a copy of it in...
  • N.C. Gen. Stat. § 159-13.   The budget ordinance; form, adoption, limitations, tax levy, filing
    (a) Not earlier than 10 days after the day the budget is presented to the board and not later than July 1, the governing...
  • N.C. Gen. Stat. § 159-13.1.   Financial plan for intragovernmental service funds
    (a) If a local government or public authority establishes and operates one or more intragovernmental service funds, it need not include such a fund...
  • N.C. Gen. Stat. § 159-13.2.   Project ordinances
    (a) Definitions. - (1) In this section "capital project" means a project financed in whole or in part by the proceeds of bonds or...
  • N.C. Gen. Stat. § 159-14.   Trust and agency funds; budgets of special districts
    (a) Budgets of Special Districts. - If the tax-levying power of a special district is by law exercised on its behalf by a county...
  • N.C. Gen. Stat. § 159-15.   Amendments to the budget ordinance
    Except as otherwise restricted by law, the governing board may amend the budget ordinance at any time after the ordinance's adoption in any manner,...
  • N.C. Gen. Stat. § 159-16.   Interim budget
    In case the adoption of the budget ordinance is delayed until after July 1, the governing board shall make interim appropriations for the purpose...
  • N.C. Gen. Stat. § 159-17.   Ordinance procedures not applicable to budget or project ordinance adoption
    Notwithstanding the provisions of any city charter, general law, or local act: (1) Any action with respect to the adoption or amendment of the...
  • N.C. Gen. Stat. § 159-17.1.   Vending facilities
    Moneys received by a public authority, special district, or unit of local government on account of operation of vending facilities shall be deposited, budgeted,...
  • N.C. Gen. Stat. § 159-18.   Capital reserve funds
    Any local government or public authority may establish and maintain a capital reserve fund for any purposes for which it may issue bonds. A...
  • N.C. Gen. Stat. § 159-19.   Amendments
    The resolution or ordinance may be amended from time to time in the same manner in which it was adopted. Amendments may, among other...
  • N.C. Gen. Stat. § 159-20.   Funding capital reserve funds
    Capital reserve funds may be funded by appropriations from any other fund consistent with the limitations imposed in G.S. 159-13(b). When moneys or investment...
  • N.C. Gen. Stat. § 159-21.   Investment
    The cash balances, in whole or in part, of capital reserve funds may be deposited at interest or invested as provided by G.S. 159-30....
  • N.C. Gen. Stat. § 159-22.   Withdrawals
    Withdrawals from a capital reserve fund may be authorized by resolution or ordinance of the governing board of the local government or public authority....
  • N.C. Gen. Stat. § 159-23.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 159-24.   Finance officer
    Each local government and public authority shall appoint a finance officer to hold office at the pleasure of the appointing board or official. The...
  • N.C. Gen. Stat. § 159-25.   Duties of finance officer; dual signatures on checks; internal control procedures subject to Commission regulation
    (a) The finance officer shall have the following powers and duties: (1) He shall keep the accounts of the local government or public authority...
  • N.C. Gen. Stat. § 159-26.   Accounting system
    (a) System Required. - Each local government or public authority shall establish and maintain an accounting system designed to show in detail its assets,...
  • N.C. Gen. Stat. § 159-27.   Distribution of tax collections among funds according to levy
    (a) The finance officer shall distribute property tax collections among the appropriate funds, according to the budget ordinance, at least monthly. (b) Taxes collected...
  • N.C. Gen. Stat. § 159-27.1.   Use of revenue bond project reimbursements; restrictions
    The finance officer of a unit shall deposit any funds received by the unit as a reimbursement of a loan or advance made by...
  • N.C. Gen. Stat. § 159-28.   Budgetary accounting for appropriations
    (a) Incurring Obligations. - No obligation may be incurred in a program, function, or activity accounted for in a fund included in the budget...
  • N.C. Gen. Stat. § 159-28.1.   Facsimile signatures
    The governing board of a local government or public authority may provide by appropriate resolution or ordinance for the use of facsimile signature machines,...
  • N.C. Gen. Stat. § 159-29.   Fidelity bonds
    (a) The finance officer shall give a true accounting and faithful performance bond with sufficient sureties in an amount to be fixed by the...
  • N.C. Gen. Stat. § 159-30.   Investment of idle funds
    (a) A local government or public authority may deposit at interest or invest all or part of the cash balance of any fund. The...
  • N.C. Gen. Stat. § 159-30.1.   Trust for other post-employment benefits
    (a) Trust. - A local government, a public authority, an entity eligible to participate in the Local Government Employee's Retirement System, or a local...
  • N.C. Gen. Stat. § 159-30.2.   Trust for law enforcement special separation allowance benefits
    (a) Trust. - A unit of local government employing local law enforcement officers may establish and fund an irrevocable trust for the purpose of...
  • N.C. Gen. Stat. § 159-31.   Selection of depository; deposits to be secured
    (a) The governing board of each local government and public authority shall designate as its official depositories one or more banks, savings and loan...
  • N.C. Gen. Stat. § 159-32.   Daily deposits
    Except as otherwise provided by law, all taxes and other moneys collected or received by an officer or employee of a local government or...
  • N.C. Gen. Stat. § 159-32.1.   Electronic payment
    A unit of local government, public hospital, or public authority may, in lieu of payment by cash or check, accept payment by electronic payment...
  • N.C. Gen. Stat. § 159-33.   Semiannual reports on status of deposits and investments
    Each officer having custody of any funds of any local government or public authority shall report to the secretary of the Local Government Commission...
  • N.C. Gen. Stat. § 159-33.1.   Semiannual reports of financial information
    The finance officer of each unit and public authority shall submit to the secretary on January 1 and July 1 of each year (or...
  • N.C. Gen. Stat. § 159-34.   Annual independent audit; rules and regulations
    (a) Each unit of local government and public authority shall have its accounts audited as soon as possible after the close of each fiscal...
  • N.C. Gen. Stat. § 159-35.   Secretary of Local Government Commission to notify units of debt service obligations
    (a) The secretary shall mail to each local government and public authority not later than May 1 of each year a statement of its...
  • N.C. Gen. Stat. § 159-36.   Failure of local government to levy debt service taxes or provide for payment of debt
    (a) If any local government or public authority fails or refuses to levy taxes or allocate other revenues in an amount sufficient to meet...
  • N.C. Gen. Stat. § 159-37.   Reports on status of sinking funds
    Each unit or public authority maintaining any sinking fund shall transmit to the secretary upon his request financial reports on the status of the...
  • N.C. Gen. Stat. § 159-38.   Local units authorized to accept their bonds in payment of certain claims and judgments
    Any unit of local government or public authority may accept its own bonds, at par, in settlement of any claim or judgment that it...
  • N.C. Gen. Stat. § 159-39.   Special regulations pertaining to public hospitals
    (a) For the purposes of this Part, "public hospital" means any hospital that (1) Is operated by a county, city, hospital district, or hospital...
  • N.C. Gen. Stat. § 159-40.   Special regulations pertaining to nonprofit corporations receiving public funds
    (a) If a city or county grants or appropriates one thousand dollars ($1,000) or more in any fiscal year to a nonprofit corporation or...
  • N.C. Gen. Stat. § 159-41.   Special regulations pertaining to joint municipal power agencies
    (a) For the purposes of this Part, "joint agency" means a public body corporate and politic organized in accordance with the provisions of Chapter...
  • N.C. Gen. Stat. § 159-42.   Special regulations pertaining to public housing authorities
    (a) Definition. - As used in this Part, the term "housing authority" means any entity as defined in G.S. 157-3(1) that is not subject...

Article 4 - Local Government Bond Act.

  • N.C. Gen. Stat. § 159-43.   Short title; legislative intent
    (a) This Article may be cited as "The Local Government Bond Act." (b) It is the intent of the General Assembly by enactment of...
  • N.C. Gen. Stat. § 159-44.   Definitions
    The words and phrases defined in this section shall have the meanings indicated when used in this Article, unless the context clearly requires another...
  • N.C. Gen. Stat. § 159-45.   All general obligation bonds subject to Local Government Bond Act
    No unit of local government in this State shall have authority to enter into any contract or agreement, whether oral or written, whereby it...
  • N.C. Gen. Stat. § 159-46.   Faith and credit pledged
    The faith and credit of the issuing unit are hereby pledged for the payment of the principal of and interest on all bonds issued...
  • N.C. Gen. Stat. § 159-47.   Additional security for utility or public service enterprise bonds
    (a) The revenues of a utility or public service enterprise owned or leased by a unit of local government shall be applied in accordance...
  • N.C. Gen. Stat. § 159-48.   For what purposes bonds may be issued
    (a) Each unit of local government is authorized to borrow money and issue its bonds under this Article in evidence thereof for any one...
  • N.C. Gen. Stat. § 159-49.   When a vote of the people is required
    Bonds may be issued under this Article only if approved by a vote of the qualified voters of the issuing unit as provided in...
  • N.C. Gen. Stat. § 159-50.   Notice of intent to make application for issuance of voted bonds; objection by citizens and taxpayers
    When a unit of local government proposes to issue bonds that must be approved by a vote of the people, it shall first publish...
  • N.C. Gen. Stat. § 159-51.   Application to Commission for approval of bond issue; preliminary conference; acceptance of application
    No bonds may be issued under this Article unless the issue is approved by the Local Government Commission. The governing board of the issuing...
  • N.C. Gen. Stat. § 159-52.   Approval of application by Commission
    (a) In determining whether a proposed bond issue shall be approved, the Commission may consider: (1) Whether the project to be financed from the...
  • N.C. Gen. Stat. § 159-53.   Order approving or disapproving an application
    (a) After considering an application, and conducting a public hearing thereon if one is requested under G.S. 159-52(b), the Commission shall enter its order...
  • N.C. Gen. Stat. § 159-54.   The bond order
    After or at the same time the application is filed with the Commission, a bond order shall be introduced before the governing board of...
  • N.C. Gen. Stat. § 159-55.   Sworn statement of debt; debt limitation; statement of estimated interest on the bonds
    (a) After the bond order has been introduced and before the public hearing thereon, the finance officer (or some other officer designated by the...
  • N.C. Gen. Stat. § 159-56.   Publication of bond order as introduced
    After the introduction of the bond order, the clerk shall publish it once with the following statement appended: "The foregoing order has been introduced...
  • N.C. Gen. Stat. § 159-56.1.   Certain proceedings ratified notwithstanding provisions of 159-56
    All proceedings heretofore taken by the governing boards of units of local government in connection with the authorization of bonds are hereby ratified, approved,...
  • N.C. Gen. Stat. § 159-57.   Hearing; passage of bond order
    On the date fixed for the public hearing, which shall be not earlier than six days after the date of publication of the bond...
  • N.C. Gen. Stat. § 159-58.   Publication of bond order as adopted
    After adoption, the clerk shall publish the bond order once, with the following statement appended: "The foregoing order was adopted on the ______ day...
  • N.C. Gen. Stat. § 159-59.   Limitation of action to set aside order
    Any action or proceeding in any court to set aside a bond order, or to obtain any other relief, upon the ground that the...
  • N.C. Gen. Stat. § 159-60.   Petition for referendum on bond issue
    A petition demanding that a bond order be submitted to the voters may be filed with the clerk within 30 days after the date...
  • N.C. Gen. Stat. § 159-61.   Bond referenda; majority required; notice of referendum; form of ballot; canvass
    (a) If a bond order is to take effect upon approval of the voters, the affirmative vote or a majority of those who vote...
  • N.C. Gen. Stat. § 159-62.   Limitation on actions contesting validity of bond referenda
    Any action or proceeding in any court to set aside a bond referendum, or to obtain any other relief, upon the ground that the...
  • N.C. Gen. Stat. § 159-63.   Repeal of bond orders
    A bond order may be repealed at any time before bonds or bond anticipation notes are issued thereunder. No referendum is required on the...
  • N.C. Gen. Stat. § 159-64.   Within what time bonds may be issued
    Bonds may be issued under a bond order at any time within seven years after the bond order takes effect. Such period may be...
  • N.C. Gen. Stat. § 159-65.   Resolution fixing the details of the bonds
    (a) After the bond order has been adopted, the board shall adopt a resolution fixing the details of the bonds. In fixing details of...
  • N.C. Gen. Stat. § 159-66.   Validation of former proceedings and actions
    (a) All proceedings and actions heretofore taken by the governing boards of units of local government and by the Local Government Commission to fix...
  • N.C. Gen. Stat. § 159-67.   Procedures if a county votes to relocate the county seat
    Whenever the citizens of a county, by referendum, decide that the county's county seat, along with the courthouse and other county buildings and agencies,...
  • N.C. Gen. Stat. § 159-68.   Certain provisions not applicable to refunding bonds
    The provisions of G.S. 159-56 and the provisions of this Article related to the holding of a public hearing prior to the adoption of...
  • N.C. Gen. Stat. § 159-69.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 159-70.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 159-71.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 159-72.   Purposes for which funding and refunding bonds may be issued; when such bonds may be issued
    A unit of local government may issue funding and refunding bonds under this Article for the purposes listed in G.S. 159-48(a)(4), (5), (6), or...
  • N.C. Gen. Stat. § 159-73.   Financing or refinancing agreements
    Each unit of local government is authorized to enter into agreements with the holders of its outstanding debts for the settlement, adjustment, funding, refunding,...
  • N.C. Gen. Stat. § 159-74.   Test cases testing validity of funding or refunding bonds
    At any time after the procedure for authorizing the issuance of funding or refunding bonds has been completed, but before the issuance of the...
  • N.C. Gen. Stat. § 159-75.   Judgment validating issue; costs of the action
    A final decree of the General Court of Justice validating funding or refunding bonds or the financing or refinancing agreement shall be conclusive as...
  • N.C. Gen. Stat. § 159-76.   Validation of bonds and notes issued before March 26, 1931
    All bonds and notes issued before March 26, 1931, for which the issuing unit received an amount of money not less than the face...
  • N.C. Gen. Stat. § 159-77.   Validation of all proceedings in connection with the authorization of bonds taken before April 28, 1975
    All proceedings heretofore taken by the governing boards of units of local government in connection with the authorization of bonds are hereby ratified, approved,...
  • N.C. Gen. Stat. § 159-78.   Special obligation refunding bonds
    In conjunction with the issuance of refunding bonds pursuant to G.S. 159-72 or G.S. 159-84 a unit of local government may issue a series...
  • N.C. Gen. Stat. § 159-79.   Variable rate demand bonds and notes
    (a) (See note) Notwithstanding any provisions of this Chapter to the contrary, including particularly, but without limitation, the provisions of G.S. 159-65, G.S. 159-123...

Article 5 - Revenue Bonds.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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,...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 159-88.   Adoption of revenue bond order
    (a) At any time after an application is filed with the Commission for the issuance of revenue bonds, (i) in the case of the...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 159-98.   Reserved for future codification purposes

Article 5A - Capital Appreciation Bonds.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...

Article 6 - Project Development Financing Act.

  • N.C. Gen. Stat. § 159-101.   Short title
    This Article may be cited as the "North Carolina Project Development Financing Act." (2003-403, s. 2.)
  • N.C. Gen. Stat. § 159-102.   Unit of local government defined
    For the purposes of this Article, the term "unit of local government" means a county or a municipal corporation. (2003-403, s. 2.)
  • N.C. Gen. Stat. § 159-103.   Authorization of project development financing debt instruments; purposes
    (a) Each unit of local government may issue project development financing debt instruments pursuant to this Article and use the proceeds for one or...
  • N.C. Gen. Stat. § 159-104.   Application to Commission for approval of project development financing debt instrument issue; preliminary conference; acceptance of application
    A unit of local government may not issue project development financing debt instruments under this Article unless the issue is approved by the Local...
  • N.C. Gen. Stat. § 159-105.   Approval of application by Commission
    (a) In determining whether to approve a proposed project development financing debt instrument issue, the Commission may inquire into and consider any matters that...
  • N.C. Gen. Stat. § 159-106.   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 is not...
  • N.C. Gen. Stat. § 159-107.   Determination of incremental valuation; use of taxes levied on incremental valuation; duration of the district
    (a) Base Valuation in the Development Financing District. - After the Local Government Commission has entered its order approving a unit of local government's...
  • N.C. Gen. Stat. § 159-108.   Agreements with property owners
    (a) Authorization. - A unit of local government that issues project development financing debt instruments may enter into agreements with the owners of real...
  • N.C. Gen. Stat. § 159-109.   Special covenants
    A project development financing debt instrument order or a trust agreement securing project development financing debt instruments may contain covenants regarding: (1) The pledge...
  • N.C. Gen. Stat. § 159-110.   Security of project development financing debt instruments
    Project development financing debt instruments are special obligations of the issuing unit. Moneys in the Revenue Increment Fund required by G.S. 159-107(c) are pledged...
  • N.C. Gen. Stat. § 159-111.   Additional security for project development financing debt instruments
    (a) In order to provide additional security for debt instruments issued pursuant to this Article, the issuing unit of local government may pledge its...
  • N.C. Gen. Stat. § 159-112.   Limitations on details of debt instruments
    In fixing the details of project development financing debt instruments, the governing body of the issuing unit of local government is subject to these...
  • N.C. Gen. Stat. § 159-113.   Annual report
    In July of each year, each unit of local government with outstanding project development financing debt instruments shall make a report to any other...
  • N.C. Gen. Stat. § 159-114.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 159-115 through 159-119.   Reserved for future codification purposes

Article 7 - Issuance and Sale of Bonds.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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,...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 159-142 through 159-147.   Reserved for future codification purposes

Article 8 - Financing Agreements and Other Financing Arrangements.

  • N.C. Gen. Stat. § 159-148.   Contracts subject to Article; exceptions
    (a) Except as provided in subsection (b) of this section, this Article applies to any contract, agreement, memorandum of understanding, and any other transaction...
  • N.C. Gen. Stat. § 159-149.   Application to Local Government Commission for approval of contract
    A unit of local government may not enter into any contract subject to this Article unless it is approved by the Local Government Commission...
  • N.C. Gen. Stat. § 159-150.   Sworn statement of debt; debt limitation
    After or at the time an application is filed under G.S. 159-149, the finance officer, or some other officer designated by the board, shall...
  • N.C. Gen. Stat. § 159-151.   Approval of application by Commission
    (a) In determining whether a proposed contract shall be approved, the Commission may consider: (1) Whether the undertaking is necessary or expedient. (2) The...
  • N.C. Gen. Stat. § 159-152.   Order approving or denying the application
    (a) After considering an application, and conducting a public hearing thereon if one is requested under G.S. 159-151, the Commission shall enter its order...
  • N.C. Gen. Stat. § 159-153.   Approval of other financing arrangements
    (a) Commission Approval Required. - Except as provided in subsection (b) of this section, approval by the Commission in accordance with this section is...
  • N.C. Gen. Stat. § 159-154 through 159-159.   Reserved for future codification purposes

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

  • N.C. Gen. Stat. § 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,...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 159-166 through 159-167.   Reserved for future codification purposes
  • N.C. Gen. Stat. § 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)...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 159-173 through 159-175.   Reserved for future codification purposes

Article 9A - Borrowing by Cities for Competitive Purposes.

  • N.C. Gen. Stat. § 159-175.10.   Additional requirements for review of city financing application; communications service
    The Commission shall apply additional requirements to an application for financing by a city or a joint agency under Part 1 of Article 20...

Article 10 - Assistance for Defaulting Units in Refinancing Debt.

  • N.C. Gen. Stat. § 159-176.   Commission to aid defaulting units in developing refinancing plans
    If a unit of local government or municipality (as defined in G.S. 159-44, 159-81, or 159-102) fails to pay any installment of principal or...
  • N.C. Gen. Stat. § 159-177.   Power to require reports and approve budgets
    When a refinancing plan has been put into effect pursuant to G.S. 159-176, the Commission shall have authority to require any periodic reports on...
  • N.C. Gen. Stat. § 159-178.   Duration of Commission's powers
    The power and authority granted to the Commission in this Article shall continue with respect to a defaulting unit of local government or municipality...
  • N.C. Gen. Stat. § 159-179 through 159-180.   Reserved for future codification purposes

Article 11 - Enforcement of Chapter.

  • N.C. Gen. Stat. § 159-181.   Enforcement of Chapter
    (a) If any finance officer, governing board member, or other officer or employee of any local government or public authority (as local government and...
  • N.C. Gen. Stat. § 159-182.   Offending officers and employees removed from office
    If an officer or employee of a local government or public authority persists, after notice and warning from the Commission, in failing or refusing...
  • N.C. Gen. Stat. § 159-183 through 159-187.   Reserved for future codification purposes

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

  • N.C. Gen. Stat. § 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,...

Article 13 - Interest Rate Swap Agreements for Governmental Units.

  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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...
  • N.C. Gen. Stat. § 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,...
  • N.C. Gen. Stat. § 159-201 through 159-209.   Reserved for future codification purposes

Article 14 - Borrowing by Airport Authorities.

  • N.C. Gen. Stat. § 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...

Last modified: March 23, 2014