North Carolina § 136-266 - Bonds and notes for special user projects.

§ 136-266. Bonds and notes for special user projects.

The Authority is also hereby authorized, subject to the provisions of this section, to issue, at one time or from time to time, bonds and notes to finance special user projects. The term "special user project" shall mean any land, equipment or any one or more buildings or other structures, whether or not on the same site or sites, and any rehabilitation, improvement, renovation or enlargement of, or any addition to, any building or structure for use as or in connection with any commercial, industrial, manufacturing, processing, mining, transportation, distribution, storage, marine or environmental facility or improvement primarily for the use of one or more private parties. Any such special user project may include all appurtenances and incidental facilities such as land, headquarters or office facilities, restaurant and lodging facilities, warehouses, distribution centers, pollution control facilities, access roads, sidewalks, utilities, railway sidings, trucking and similar facilities, parking facilities, waterways, docks, wharves and other improvements necessary or convenient for ships, tugboats, barges or other vessels or for the construction, maintenance and operation of any building or structure, or addition thereto. Bonds and notes may be sold to finance special user projects irrespective of the interest limitations set forth in G.S. 24-1.1, as amended, and successor provisions. The bonds or notes of each issue of the Authority under this section shall be special, limited obligations of the Authority payable solely from such other revenues, income or assets of the Authority as the Authority shall specifically assign or pledge and such funds, collateral and undertakings as any private parties may assign or pledge therefor. Bonds and notes issued under the provisions of this section may be secured by one or more agreements, including forecloseable deeds of trust and other trust instruments, which may pledge and assign to the trustee or the holders of its obligations the assets, revenues, and income provided for the security of the bonds or notes, including proceeds from the sale of any special user project, or part thereof, insurance proceeds and condemnation awards, and third-party agreements, and may convey or mortgage the project and other property and collateral to secure a bond issue. Notwithstanding any other provision of law, the Authority may agree that all contracts relating to the acquisition, construction, installation and equipping of the special user project shall be solicited, negotiated, awarded and executed by the private party or parties for which the Authority is financing the special user project or their agents subject only to such approvals by the Authority as the Authority may require. The Authority may, out of the proceeds of bonds or notes, make advances to or reimburse such private parties or such agents for all or a portion of the costs incurred in connection with such contracts. The provisions of G.S. 136-271 of this Article shall have no application to funds and moneys derived pursuant to this section. Repealed by Session Laws 2001-218, s. 5, effective July 1, 2001. The financing agreement may provide the Authority with rights and remedies in the event of a default by the obligor thereunder including, without limitation, reentry and repossession or leasing or sale or foreclosure of the special user project to others. The Authority's interest in a special user project may be that of owner, lessor, operator, lessee, conditional or installment vendor, mortgagor, mortgagee, secured party or otherwise, but the Authority need not have any ownership or possessory interest in the project, and if that of lessor, the lessee may have an option or an obligation to purchase the special user project upon the expiration or termination of the lease. The Authority may subordinate the bonds or notes or its rights, assets, revenues and income derived from any special user project to any prior, contemporaneous or future securities or obligations or lien, mortgage or other security interest. History (1981, c. 856, s. 2; 2000-169, s. 41; 2001-218, s. 5; 2001-487, s. 33; 2011-145, s. 14.6(b), (k).) Editor's Note. - This section was formerly codified as G.S. 143B-456.1. It was recodified as G.S. 136-266 by Session Laws 2011-145, s. 14.6(b), effective July 1, 2011. Session Laws 1981, c. 856, s. 7, as amended by Session Laws 1981, c. 988, s. 1, provided: "Sec. 7. The provisions of this act shall become effective upon ratification, except for the provisions of Section 2 of this act [which added G.S. 143B-456.1 (now G.S. 136-266)], which shall become effective upon there becoming effective an amendment to the North Carolina Constitution authorizing the General Assembly to enact laws dealing with the subject matter of said Section 2." Such an amendment was proposed by Session Laws 1981, c. 808, as amended by Session Laws 1981, c. 987, and submitted to the People at an election held June 29, 1982, and was defeated. Such an amendment was again proposed by Session Laws 1985 (Reg. Sess., 1986), c. 933, and was adopted by the People at an election held on November 4, 1986. (See Article V, § 13, N.C. Const.). This amendment was certified to the Secretary of State on November 25, 1986. Therefore, G.S. 143B-456.1 became effective on November 25, 1986. Effect of Amendments. - Session Laws 2011-145, s. 14.6(k), effective July 1, 2011, substituted "G.S. 136-271 of this Article" for "G.S. 143B-463 of this Part" in the last sentence of subsection (e).