North Carolina HB 164: Community College Bond Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H 2

HOUSE BILL 164
Second Edition Engrossed 4/8/93

Short Title: Community College Bond Act. (Public)
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Sponsors: Representatives Redwine; Alexander, Alphin, Baddour, Barbee, Bowman, D.
Brown, J. Brown, Brubaker, Church, Culp, Dockham, Gardner, Gottovi, Grady, Hill,
Ives, Lee, Luebke, Lutz, McCombs, McCrary, McLawhorn, Mercer, Mitchell, Morgan,
Richardson, Smith, Spears, Stewart, Sutton, Wilkins, and Wright.
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Referred to: Education.
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February 16, 1993

A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE THE ISSUANCE OF THREE HUNDRED ELEVEN 2
MILLION TWO HUNDRED THOUSAND DOLLARS GENERAL OBLIGATION 3
BONDS OF THE STATE, SUBJECT TO A VOTE OF THE QUALIFIED 4
VOTERS OF THE STATE, TO PROVIDE FUNDS, WITH ANY OTHER 5
AVAILABLE FUNDS, FOR CAPITAL IMPROVEMENTS FOR COMMUNITY 6
COLLEGES. 7
The General Assembly of North Carolina enacts: 8
Section 1. Short title. This act shall be known and may be cited as the 9
"Community Colleges Bond Act." 10
Sec. 2. Findings and determinations. It is the intent and purpose of the 11
General Assembly by this act to provide for the issuance of general obligation bonds of 12
the State in order to make grants to particular community colleges for specified capital 13
improvements as provided in this act. 14
Sec. 3. Definitions. As used in this act, unless the context otherwise 15
requires: 16
(1) " Bonds" means bonds issued under this act. 17
(2) " Cost" means, without intending thereby to limit or restrict any proper 18
definition of such word in financing the cost of facilities or purposes 19
authorized by this act: 20

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a. The cost of constructing, reconstructing, enlarging, acquiring, 1
and improving facilities, and acquiring equipment and land 2
therefor, 3
b. The cost of engineering, architectural, and other consulting 4
services as may be required, 5
c. Administrative expenses and charges, 6
d. The cost of bond insurance, investment contracts, credit 7
enhancement and liquidity facilities, interest-rate swap 8
agreements, financial and legal consultants, and related costs of 9
bond and note issuance, to the extent and as determined by the 10
State Treasurer, and 11
e. Any other costs and expenses necessary or incidental to the 12
purposes of this act. 13
Allocations in this act of proceeds of bonds to the costs of a project or 14
undertaking in each case may include allocations to pay the costs set 15
forth in items c., d., and e. in connection with the issuance of bonds for 16
such project or undertaking. 17
(3) " Credit facility" means an agreement entered into by the State 18
Treasurer on behalf of the State with a bank, savings and loan 19
association, or other banking institution, an insurance company, 20
reinsurance company, surety company, or other insurance institution, a 21
corporation, investment banking firm, or other investment institution, 22
or any financial institution or other similar provider of a credit facility, 23
which provider may be located within or without the United States of 24
America, such agreement providing for prompt payment of all or any 25
part of the principal or purchase price (whether at maturity, 26
presentment or tender for purchase, redemption or acceleration), 27
redemption premium, if any, and interest on any bonds or notes 28
payable on demand or tender by the owner, in consideration of the 29
State agreeing to repay the provider of the credit facility in accordance 30
with the terms and provisions of such agreement. 31
(4) " Notes" means notes issued under this act. 32
(5) " Par formula" means any provision or formula adopted by the State to 33
provide for the adjustment, from time to time, of the interest rate or 34
rates borne by any bonds or notes, including: 35
a. A provision providing for such adjustment so that the purchase 36
price of such bonds or notes in the open market would be as 37
close to par as possible, 38
b. A provision providing for such adjustment based upon a 39
percentage or percentages of a prime rate or base rate, which 40
percentage or percentages may vary or be applied for different 41
periods of time, or 42
c. Such other provision as the State Treasurer may determine to be 43
consistent with this act and will not materially and adversely 44

1993 GENERAL ASSEMBLY OF NORTH CAROLINA
HOUSE BILL 164 version 2 Page 3
affect the financial position of the State and the marketing of 1
bonds or notes at a reasonable interest cost to the State. 2
Sec. 4. Authorization of bonds and notes. Subject to a favorable vote of a 3
majority of the qualified voters of the State who vote on the question of issuing 4
Community College bonds in the election held as provided in this act, the State 5
Treasurer is authorized, by and with the consent of the Council of State, to issue and 6
sell, at one time or fr