GENERAL ASSEMBLY OF NORTH CAROLINA
1997 SESSION
S.L. 1997-13
The General Assembly of North Carolina enacts:
Section 1. G.S. 122A-8 reads as rewritten:
"§ 122A-8. Bonds and notes.
The Agency is hereby authorized to provide for the issuance,
at one time or from time to time, of not exceeding one billion five hundred million
dollars ($1,500,000,000) bonds of the Agency to carry out and effectuate its
corporate purposes; provided, however, that not more than fifty million dollars
($50,000,000) bonds shall be issued prior to June 30, 1971. of bonds and
notes of the Agency to carry out and effectuate its corporate purposes. The
Agency also is hereby authorized to provide for the issuance, at one time or
from time to time of (i) bond anticipation notes in anticipation of the
issuance of such bonds and (ii) construction loan notes to finance the making
or purchase of mortgage loans to sponsors of residential housing for the
construction, rehabilitation or improvement of residential housing;
provided, however, that the housing. The total amount of
bonds, bond anticipation notes notes, and construction loan notes
outstanding at any one time shall not exceed one billion five hundred million
dollars ($1,500,000,000) excluding therefrom any bond anticipation notes for
the payment of which bonds shall have been issued. The principal
of and the interest on such bonds or notes shall be payable solely from the
funds herein provided for such payment. Any such notes may be made payable from
the proceeds of bonds or renewal notes or, in the event bond or renewal note
proceeds are not available, such notes may be paid from any available revenues
or assets of the Agency. The bonds or notes of each issue shall be dated and
may be made redeemable before maturity at the option of the Agency at such
price or prices and under such terms and conditions as may be determined by the
Agency. Any such bonds or notes shall bear interest at such rate or rates as
may be determined by the Local Government Commission of North Carolina with the
approval of the Agency. Notes shall mature at such time or times not exceeding
10 years from their date or dates and bonds shall mature at such time or times
not exceeding 43 years from their date or dates, as may be determined by the
Agency. The Agency shall determine the form and manner of execution of the
bonds or notes, including any interest coupons to be attached thereto, and
shall fix the denomination or denominations and the place or places of payment
of principal and interest, which may be any bank or trust company within or
without the State. In case any officer whose signature or a facsimile of whose
signature shall appear on any bonds or notes or coupons attached thereto shall
cease to be such officer before the delivery thereof, such signature or such
facsimile shall nevertheless be valid and sufficient for all purposes the same
as if he had remained in office until such delivery. The Agency may also
provide for the authentication of the bonds or notes by a trustee or fiscal
agent. The bonds or notes may be issued in coupon or in registered form, or
both, as the Agency may determine, and provision may be made for the
registration of any coupon bonds or notes as to principal alone and also as to
both principal and interest, and for the reconversion into coupon bonds or
notes of any bonds or notes registered as to both principal and interest, and
for the interchange of registered and coupon bonds or notes. Upon the filing
with the Local Government Commission of North Carolina of a resolution of the
Agency requesting that its bonds and notes be sold, such bonds or notes may be
sold in such manner, either at public or private sale, and for such price as said
the Commission shall determine to be for the best interest of the
Agency and best effectuate the purposes of this Chapter provided that such
sale shall be Chapter, as long as the sale is approved by the
Agency.
The proceeds of any bonds or notes shall be used solely for the purposes for which issued and shall be disbursed in such manner and under such restrictions, if any, as the Agency may provide in the resolution authorizing the issuance of such bonds or notes or in the trust agreement hereinafter mentioned securing the same.
Prior to the preparation of definitive bonds, the Agency may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Agency may also provide for the replacement of any bonds or notes which shall become mutilated or shall be destroyed or lost.
Bonds or notes may be issued under the provisions of this Chapter without obtaining, except as otherwise expressly provided in this Chapter, the consent of any department, division, commission, board, body, bureau or agency of the State, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by this Chapter and the provisions of the resolution authorizing the issuance of such bonds or notes or the trust agreement securing the same."
Section 2. G.S. 122A-11 reads as rewritten:
"§ 122A-11. Trust funds.
Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to the authority of this Chapter shall be deemed to be trust funds to be held and applied solely as provided in this Chapter. The resolution authorizing any obligations or the trust agreement securing the same may provide that any of such moneys may be temporarily invested pending the disbursement thereof and shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this Chapter and such resolution or trust agreement may provide.
Any moneys received pursuant to the authority of this Chapter and any other moneys available to the Agency for investment may be invested:
(1) As provided in G.S.
159-30, except that for purposes of G.S. 159-30(b) the Agency may deposit
moneys at interest in banks or trust companies outside as well as in this
State, provided any such as long as any moneys at deposit outside
this State are collateralized to the same extent and manner as if at deposit in
this State;
(2) In evidences of ownership of, or fractional undivided interests in, future interest and principal payments on either direct obligations of the United States government or obligations the principal of and the interest on which are guaranteed by the United States government, which obligations are held by a bank or trust company organized and existing under the laws of the United States of America or any state in the capacity of custodian;
(3) In obligations which are collateralized by mortgage pass-through securities guaranteed by the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Federal National Mortgage Association;
(4) In a trust certificate or similar instrument evidencing an equity investment in a trust or other similar arrangement which is formed for the purpose of issuing obligations which are collateralized by mortgage pass-through or participation certificates guaranteed by the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association; and
(5) In repurchase
agreements with respect to either direct obligations of the United States
government or obligations the principal of and the interest on which are guaranteed
by the United States government if all of the following conditions are met: entered
into with a broker or dealer, as defined by the Securities Exchange Act of
1934, which is a dealer recognized as a primary dealer by a Federal Reserve
Bank, or any commercial bank, trust company or national banking association,
the deposits of which are insured by the Federal Deposit Insurance Corporation
or any successor thereof if
a. The repurchase agreement is entered into with an institution whose ability to pay its unsecured long-term obligations (including, if the institution is an insurance company, its claims paying ability) is rated in one of the two highest ratings categories by a nationally recognized securities rating agency. If the term of the repurchase agreement is for a period of one year or less, however, the repurchase agreement may be entered into with an institution that does not have such a long-term rating if its ability to pay its unsecured short-term obligations is rated in one of the two highest ratings categories by a nationally recognized securities rating agency. If the institution with which the agreement is to be entered does not meet the ratings requirement of this subparagraph, the repurchase agreement may nevertheless be entered into with the institution if the obligations of the institution under the repurchase agreement are fully guaranteed by another institution that does meet the ratings requirement of this subparagraph.
b. The repurchase agreement provides that it shall be terminated, without penalty, if the institution with which the repurchase agreement is entered or by whom the institution's obligations are guaranteed fails to maintain (i) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's long-term obligations, a rating of its long-term obligations in one of the three highest ratings categories by at least one nationally recognized securities rating agency, or (ii) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's short-term obligations, a rating of its short-term obligations in one of the two highest ratings categories by at least one nationally recognized securities rating agency. The repurchase agreement does not have to be terminated, however, if a new guarantor meeting the rating requirement set forth in subparagraph a. as the requirement necessary for the Agency to enter the repurchase agreement agrees to fully guarantee the obligations of the institution under the repurchase agreement.
a.c. such The
obligations that are subject to such the repurchase agreement
are delivered (in physical or in book entry form) to the Agency, or any
financial institution serving either as trustee for obligations issued by the
Agency or as fiscal agent for the Agency or the State Treasurer or are
supported by a safekeeping receipt issued by a depository satisfactory to the Agency,
provided that such Agency. The repurchase agreement must
provide that the value of the underlying obligations shall be maintained at a
current market value, calculated at least daily, of not less than one hundred
percent (100%) of the repurchase price; price. The financial
institution serving either as trustee or as fiscal agent for the Agency holding
the obligations subject to the repurchase agreement hereunder or the depository
issuing the safekeeping receipt shall not be the provider of the repurchase
agreement.
b.d. a A
valid and perfected first security interest in the obligations which are
the subject of such the repurchase agreement has been granted to
the Agency or its assignee or book entry procedures, conforming, to the extent
practicable, with federal regulations and satisfactory to the agency have been
established for the benefit of the Agency or its assignee; assignee.
c.e. such The
securities are free and clear of any adverse third party claims; and third-party
claims.
d.f. such
The repurchase agreement is in a form satisfactory to the
Agency."
Section 3. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 3rd day of April, 1997.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 3:00 p.m. this 3rd day of April, 1997