GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 559

Short Title:  Municipal Pooled Projects.	(Public)
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Sponsors: Senator Rauch.
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Referred to:  Finance.
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March 21, 1989

A BILL TO BE ENTITLED
AN ACT CREATING THE NORTH CAROLINA MUNICIPAL POOLED CAPITAL PROJECTS FINANCING AGENCY AND THE NORTH CAROLINA COUNTY POOLED CAPITAL PROJECTS FINANCING AGENCY, SUCH AGENCIES TO PROVIDE FINANCING FOR THE ACQUISITION, CONSTRUCTION AND INSTALLATION BY MUNICIPALITIES AND COUNTIES RESPECTIVELY, OF CAPITAL PROJECTS, INCLUDING THE ACQUISITION OF EQUIPMENT, AND AMENDING CERTAIN GENERAL LAWS.
The General Assembly of North Carolina enacts:
Section 1.  The General Statutes are amended by adding a new Chapter to read:
“Chapter 159H.
"North Carolina Municipal and County Pooled
Capital Projects Financing Act.
"§ 159H-1.  Short title.
This Chapter shall be known and may be cited as the ‘North Carolina Municipal and County Pooled Capital Projects Financing Act.'
"§ 159H-2.  Legislative findings.
The General Assembly of North Carolina hereby finds, determines and declares as follows:
(1)	In order to promote and preserve their economy and the health, safety and prosperity of their residents, cities and counties in North Carolina have a need to acquire, construct and install equipment, capital improvements and property to help meet the infrastructure requirements of their communities.
(2)	The pooling of the financing needs of several cities and a like pooling for counties, and the issuance of bonds by an instrumentality of the State to finance the cost of projects will reduce the costs of such financing and will increase the number of financing options available by, among other things, providing access to a broader bond market than would otherwise be available to units of government with intermittent financing needs, by reducing issuance and marketing expenses and by providing such units with the opportunity to obtain credit and liquidity enhancement facilities that might otherwise be unavailable or more costly, thus reducing interest costs to such units.
(3)	The stringent restrictions of the Internal Revenue Code of 1986, as amended, have in many instances reduced the flexibility and have increased the costs of financing such capital projects.
(4)	The Internal Revenue Code of 1986, as amended, places certain restrictions on the investment of proceeds of bonds issued by states and their political subdivisions and requires that certain earnings on the proceeds of bonds of such entities be rebated to the federal government, in each case in order for interest on such bonds to not be includable in the gross income of the owners thereof for purposes of federal income taxation.  The Tax Reform Act of 1986 and the Technical and Miscellaneous Revenue Act of 1988 provide certain exceptions from the restrictions and requirements of said Code for two hundred million dollars ($200,000,000) of bonds issued for a loan funding program of the North Carolina League of Municipalities and the North Carolina Municipal Pooled Capital Projects Financing Agency created by this Chapter intends to issue two hundred million dollars ($200,000,000) of bonds under this Chapter which will benefit from such exceptions and thereby benefit the municipalities to which loans are made by said Agency.  The North Carolina Municipal Pooled Capital Projects Financing Agency also intends to issue bonds under this Chapter which will not have any such benefits.  Any bonds issued under this Chapter by the North Carolina County Pooled Capital Projects Financing Agency created by this Chapter will not have any such benefits.
(5)	The well-being of residents of cities and counties and the economic and governmental viability and prosperity of cities and counties in North Carolina will be served as provided in this Chapter by the establishment of two instrumentalities of the State to provide financing through the issuance by such instrumentalities of one or more issues of bonds to provide funds for the acquisition of capital projects.
(6)	By restricting the loans to be made to cities and counties to short-term loans with terms not in excess of 10 years as herein provided, the possibility of achieving the governmental purpose of recycling loan repayments on such short-term loans to other borrowers is enhanced.
"§ 159H-3.  Definitions.
As used or referred to in this Chapter, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:
(1)	‘Acquisition' when used in respect of a project, means acquisition, construction, improvement or installation, and ‘acquire,' ‘acquiring' and other forms of the word ‘acquisition' shall have the meanings correlative thereto.
(2)	‘Administrative charges' means any charge made by the Agency to a city or a county for the providing of financing pursuant to this Chapter and may include, without limitation, charges for financing costs, charges for the costs of bond and reserve fund insurance, of credit-enhancement and liquidity facilities and of interest-rate agreements and charges for administrative expenses of the Agency incurred in the exercise of its powers and duties conferred by this Chapter.
(3)	‘Agency' or ‘the Agency' means the County Agency or the Municipal Agency, individually, as well as the County Agency and the Municipal Agency, collectively, it being the intent of this Chapter that the use of the term ‘Agency' or ‘the Agency' shall, unless the context clearly indicates otherwise, embrace each such Agency, the County Agency being empowered to make loans to counties and the Municipal Agency being empowered to make loans to cities, and each such Agency shall have the powers and shall be subject to the limitations provided by this Chapter.
(4)	‘Association of County Commissioners' means the North Carolina Association of County Commissioners, a federation of county governments in the State.
(5)	‘Board' means the board of directors of the Agency or any other governing body of the Agency succeeding to the principal functions thereof.
(6)	‘Bonds' means the revenue bonds authorized to be issued by the Agency under this Chapter.  As used in this Chapter, unless the context otherwise clearly indicates, the term ‘bonds' does not include any loan obligation.
(7)	‘City' means any city, as defined in G.S. 160A-1(2), as it may be amended from time to time.
(8)	‘City Council' means any council, as defined in G.S. 160A-1(3), as it may be amended from time to time.
(9)	‘Cost' means the capital cost of acquiring any project, including, without limitation, the following:
a.	The costs of doing any or all of the following deemed necessary or convenient by a city or county:
1.	Acquiring, constructing, erecting, providing, developing, installing, furnishing, and equipping;
2.	Reconstructing, remodeling, altering, renovating, replacing, refurnishing, and reequipping;
3.	Enlarging, expanding, and extending; and
4.	Demolishing, relocating, improving, grading, draining, landscaping, paving, widening, and resurfacing;
b.	The costs of all property, both real and personal and both improved and unimproved, and of plants, works, appurtenances, structures, facilities, furnishings, machinery, equipment, vehicles, easements, water rights, franchises, and licenses used or useful in connection with the purpose authorized;
c.	The costs of demolishing or moving structures from land acquired and acquiring any lands to which such structures thereafter are to be moved;
d.	Financing charges, including estimated interest during the acquisition of such project and for six months thereafter;
e.	The costs of services to provide and the cost of plans, specifications, studies and reports, surveys, and estimates of costs and revenues;
f.	The costs of paying any interim financing related to the acquisition of a project;
g.	Administrative and legal expenses and administrative charges;
h.	The costs of obtaining bond and reserve fund insurance and investment contracts, of credit-enhancement facilities, liquidity facilities and interest-rate agreements and of establishing and maintaining debt service and other reserves; and
i.	Any other services, costs, and expenses necessary or incidental to the purpose authorized.
(10)	‘County' means any county, as defined in G.S. 153A-1(3), as it may be amended from time to time.
(11)	‘County Agency' means the North Carolina County Pooled Capital Projects Financing Agency created by this Chapter as a public agency and an instrumentality of the State to make loans to counties or, should said Agency be abolished or otherwise divested of the functions given under this Chapter, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given to said Agency by this Chapter.
(12)	‘County Board of Commissioners' means the governing body of a county, as defined in G.S. 153A-12 and Article 4 of Chapter 153A of the General Statutes, as either may be amended from time to time.
(13)	‘Interest-rate agreement' means any interest-rate protection agreement, interest liability swap agreement, interest ceiling agreement, interest rate guaranty or any other contract, other than a bond or note, with a third party that provides for a fixed or maximum amount of interest expense payable by the Agency in respect of its bonds or notes.
(14)	‘League of Municipalities' means the North Carolina League of Municipalities, a federation of municipal governments in the State.
(15)	‘Loan obligation' means any bond, note, contract, loan agreement or other written agreement of a city or a county delivered to the Agency and evidencing the city's or county's receipt of loan proceeds from the sale of a portion of the Agency's bonds or from other available money of the Agency and setting forth the terms of the city's or county's agreement to make payments to the Agency in respect of such loan.
(16)	‘Local Government Commission' means the Local Government Commission established by G.S. 159-3 and any successor of said Commission.
(17)	‘Municipal Agency' means the North Carolina Municipal Pooled Capital Projects Financing Agency created by this Chapter as a public agency and an instrumentality of the State to make loans to cities or, should said Agency be abolished or otherwise divested of the functions given under this Chapter, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given to said Agency by this Chapter.
(18)	‘Notes' means the revenue notes or revenue bond anticipation notes authorized to be issued by the Agency under this Chapter.  As used in this Chapter, the term ‘notes' does not include any loan obligation.
(19)	‘Project' means any capital project, including equipment, that may be acquired, with loan proceeds provided by the Agency, by a city or a county in accordance with the general, special or local laws, including this Chapter, of the State.
(20)	‘Revenues' means all moneys received by the Agency (other than the proceeds received by the Agency from the sale of bonds or notes) in connection with the providing of financing to cities and counties, including, without limitation, (i)  the payments received by the Agency of the principal of and premium, if any, and interest on loan obligations, (ii)  administrative charges, but only to the extent determined by the Agency, and (iii)  investment earnings on all revenues, funds and other moneys of the Agency.
(21)	‘State' means the State of North Carolina.
"§ 159H-4.  Creation of Municipality Agency.
(a)	There is hereby created a body politic and corporate to be known as the ‘North Carolina Municipal Pooled Capital Projects Financing Agency' which shall be constituted a public agency and an instrumentality of the State for the performance of essential governmental and public functions.
(b)	The governing body of the Agency shall be known as its Board of Directors and shall consist of nine members.  One of the members of the Board shall be the State Treasurer who shall serve ex officio.  The State Treasurer shall be Chairman of the Board of Directors.  Two members shall be appointed by the Governor, three members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121 and three members shall be appointed by the Senate upon the recommendation of the President Pro Tempore in accordance with G.S. 120-121.  The appointments made by the Governor and the recommendations made by the Speaker and the President of the Senate shall be made from a list of at least three nominees who may or may not be municipal officials for each position submitted by the League of Municipalities.  The appointments to be made initially by the Governor, by the General Assembly in respect of the recommendation of the Speaker and by the General Assembly in respect of the recommendation of the President Pro Tempore of the Senate shall be for terms beginning on the date of their respective appointments and expiring on June 30, 1990, June 30, 1991, and June 30, 1992.  Appointments made to succeed the initial appointments shall be for two-year terms commencing, respectively, on July 1, 1990, July 1, 1991, and July 1, 1992, and subsequent appointments shall be for two-year terms.
(c)	All members of the Board shall remain in office until their successors are appointed and qualify.  Vacancies in appointments made by the Governor shall be filled by the Governor for the remainder of the unexpired terms.  Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120-122, as it may be amended from time to time.  Persons appointed to fill vacancies shall qualify in the same manner as persons appointed for full terms.
(d)	Any member of the Board may be removed from office for misfeasance, malfeasance, nonfeasance or improper influence in accordance with the provisions of G.S. 143B-13, as it may be amended from time to time, and the resulting vacancy shall be filled as provided herein for vacancies in general.
(e)	The Board of Directors shall adopt bylaws with respect to the call of meetings, quorums (which shall be no less than five members of the Board), voting procedures, the keeping of records and such other organizational and administrative matters as the Board of Directors may determine.
(f)	No vacancy in the membership of the Board of Directors shall impair the right of a quorum to exercise all rights and to perform all the duties of the Board of Directors and the Agency.
(g)	No part of the revenues or assets of the Agency shall inure to the benefit of or be distributable to its members of officers or other private persons.  The members of the Board of Directors shall receive no salary for their services but shall be entitled to receive per diem and allowances in accordance with the provisions of G.S. 138-5, as it may be amended from time to time.
(h)	The Agency shall be contained within the Department of State Treasurer as if it had been transferred to that Department by a Type II transfer as defined in G.S. 143A-6(b).
"§ 159H-5.  Creation of County Agency.
(a)	There is hereby created a body politic and corporate to be known as the ‘North Carolina County Pooled Capital Projects Financing Agency' which shall be constituted a public agency and an instrumentality of the State for the performance of essential governmental and public functions.
(b)	The governing body of the Agency shall be known as its Board of Directors and shall consist of nine members.  One of the members of the Board shall be the State Treasurer who shall serve ex officio.  The State Treasurer shall be Chairman of the Board of Directors.  Two members shall be appointed by the Governor, three members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121 and three members shall be appointed by the Senate upon the recommendation of the President Pro Tempore in accordance with G.S. 120-121.  The appointments made by the Governor and the recommendations made by the Speaker and the President of the Senate shall be made from a list of at least three nominees who may or may not be county officials for each position submitted by the Association of County Commissioners. The appointments to be made initially by the Governor, by the General Assembly in respect of the recommendation of the Speaker and by the General Assembly in respect of the recommendation of the President Pro Tempore of the Senate shall be for terms beginning on the date of their respective appointments and expiring on June 30, 1990, June 30, 1991, and June 30, 1992.  Appointments made to succeed the initial appointments shall be for two-year terms commencing, respectively, on July 1, 1990, July 1, 1991, and July 1, 1992, and subsequent appointments shall be for two-year terms.
(c)	All members of the Board shall remain in office until their successors are appointed and qualify.  Vacancies in appointments made by the Governor shall be filled by the Governor for the remainder of the unexpired terms.  Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120-122, as it may be amended from time to time.  Persons appointed to fill vacancies shall qualify in the same manner as persons appointed for full terms.
(d)	Any member of the Board may be removed from office for misfeasance, malfeasance, nonfeasance or improper influence in accordance with the provisions of G.S. 143B-13, as it may be amended from time to time, and the resulting vacancy shall be filled as provided herein for vacancies in general.
(e)	The Board of Directors shall adopt bylaws with respect to the call of meetings, quorums (which shall be no less than five members of the Board), voting procedures, the keeping of records and such other organizational and administrative matters as the Board of Directors may determine.
(f)	No vacancy in the membership of the Board of Directors shall impair the right of a quorum to exercise all rights and to perform all the duties of the Board of Directors and the Agency.
(g)	No part of the revenues or assets of the Agency shall inure to the benefit of or be distributable to its members or officers or other private persons.  The members of the Board of Directors shall receive no salary for their services but shall be entitled to receive per diem and allowances in accordance with the provisions of G.S. 138-5, as it may be amended from time to time.
(h)	The Agency shall be contained within the Department of State Treasurer as if it had been transferred to that Department by a Type II transfer as defined in G.S. 143A-6(b).
"§ 159H-6.  General powers of Agency.
The Agency shall have all of the powers necessary or convenient to carry out and to effect the purposes and provisions of this Chapter, including without limitation, the powers:
(1)	To make and execute contracts and agreements necessary or incidental to exercise of its powers and duties under this Chapter, including, without limitation, agreements in respect of loan obligations and agreements with issuers of credit-enhancement facilities, liquidity facilities, bond insurance policies, reserve fund insurance policies and investment contracts and interest-rate agreements;
(2)	To contract with any city or county with respect to any of the matters covered by this Chapter;
(3)	To establish a debt service reserve fund or funds and other reserve funds and to borrow money and to purchase insurance and investment contracts to establish, maintain or increase such funds;
(4)	To agree to apply and assign any money, loan obligations and other revenues;
(5)	To borrow money as herein provided to carry out and effect its corporate purposes and to issue in evidence thereof bonds, notes, or bond anticipation notes for the purpose of providing funds therefor, including, but not limited to, funds for the financing and refinancing of the cost of projects, including the payment or advance on behalf of cities and counties of the costs of such acquisition;
(6)	To apply any payments, or prepayments, or principal of or interest on any loan obligation, to the extent such payment or prepayment is not necessary to pay debt service on the Agency's bonds or notes, to the financing of the cost of projects for cities and counties to the same extent as provided in Section 7 hereof;
(7)	To fix, revise, charge and collect or cause to be fixed, revised, charged and collected and to apportion administrative charges among cities and counties participating in any program of the Agency;
(8)	To employ an administrator to administer the operations of the Agency (which administrator, in the case of the Municipal Agency, may be the League of Municipalities and, in the case of the County Agency, may be the Association of County Commissioners), insurance consultants, fiscal and financial consultants, underwriters, attorneys, trustees, remarketing agents and such other consultants, agents and employees as may be required in the judgment of the Agency and to fix and pay their compensation from funds available to the Agency therefor;
(9)	To conduct or cause to be conducted studies and surveys in respect of the capital needs of cities and counties;
(10)	To apply for, accept, receive and agree to and to comply with the terms and conditions governing grants, loans, advances, contributions, gifts, and other aid from any source whatsoever, including federal and State sources;
(11)	To sue and be sued in its own name, to plead and be impleaded;
(12)	To adopt an official seal and to alter the same at its pleasure;
(13)	To establish and revise from time to time minimum standards and criteria for determining the eligibility of specific cities and counties to obtain financing and to acquire projects as provided in this Chapter;
(14)	To deposit, disburse and invest, pursuant to the provisions of this Chapter, the proceeds of any fund established in accordance with this Chapter and to determine the application of the proceeds of any earnings thereon; and
(15)	To do all other things necessary or convenient to carry out the purposes of this Chapter.
"§ 159H-7.  Specific powers of agency.
(a)	The Agency shall have the power which in its discretion it may exercise from time to time to enter into one or more loan obligations with a city or a county, providing for the making of a loan by the Agency to such city or county, or to acquire a loan obligation from a city or county, to finance or refinance the cost of the acquisition of a project; and
(b)	Any loan obligation entered into by the Agency with a city or a county shall be in writing and shall set forth the terms and conditions agreed to between the Agency and the city or the county for the Agency's loan to such city or county including without limitation, the following:
(1)	The term of such loan obligation, which term shall not exceed 10 years unless extended pursuant to an amendment pursuant to G.S. 159H-9(d);
(2)	The payment provisions and prepayments provisions, if any, required to enable the Agency to administer its programs and to pay when due the principal of and premium, if any, and interest on bonds or notes or other obligations of the Agency incurred to make such loan or to acquire such loan obligation and to pay or reimburse the Agency for such city's or county's administrative charges and the cost of establishing and maintaining any reserves;
(3)	The security for payment by the city or county of such loan obligation; and
(4)	Such other provisions and convenants as the Board may require.
(d)	Nothing in this Chapter shall be deemed to change the application of the provisions of Article 8 of Chapter 143 of the General Statutes, as it may be amended from time to time, relating to competitive bidding for public contracts, including particularly, but without limitation, the provisions of G.S. 143-49(6), as it may be amended from time to time, to cities or counties acquiring projects under this Chapter and, to the extent that such cities or counties comply with such competitive bidding requirements, there shall be no further such requirements in respect of the Agency.
"§ 159H-8. Eligibility for obtaining financing.
(a)	In determining the eligibility of a city or county for financing a project with a loan from the Agency, the Agency may consider:
(1)	The type and useful life of and the need for the project to be financed or refinanced;
(2)	The amount of financing or the cost of the project sought;
(3)	The credit rating, if any, of such city or county;
(4)	The future financing and capital needs of such city or county;
(5)	The availability and cost to such city or county of other methods of financing;
(6)	The construction, disbursement and management procedures in effect in such city or county; and
(7)	Such other factors as the Agency may, in its discretion, determine to be relevant in the providing of such financing.
(b)	As a condition of determining eligibility for participating in one or more financing programs, the Agency may establish:
(1)	 Procedures requiring compliance by cities or counties with such construction, disbursement and accounting procedures and programs as the Agency may determine;
(2)	Minimum credit ratings or criteria;
(3)	Minimum and maximum amounts with respect to the cost of the projects to be financed under this Chapter;
(4)	Procedures that may be employed by the Agency in respect of cities or counties that default in their obligations under loan obligations; and
(5)	Such other procedures, conditions and requirements as the Agency determines to be necessary or desirable in establishing its programs.
(c)	Nothing in this Chapter shall be deemed to restrict or limit the powers otherwise available to a city or a county, except to the extent restricted by the terms of any loan obligations or other agreements between a city or a county and the Agency, to obtain financing or refinancing or to acquire capital projects from a source other than the Agency or to establish or continue its own financing or acquisition program or to enter into any other financing program.
"§ 159H-9.  Specific powers of cities and counties to enter into loan obligations.
(a)	Any city or county determined by the Agency to be eligible within G.S. 159H-8 may borrow money from the Agency for the purpose of financing or refinancing the cost of acquisition by the city or county of a project.  The city or county shall enter into a loan obligation with the Agency, which agreement shall set forth the terms and conditions of such loan, including without limitation, terms and conditions described in G.S. 159H-7, all as shall be determined and approved by the city council of such city or the county board of commissioners for such county.
(b)	The obligation of a city or a county under any loan obligation entered into with the Agency pursuant to this section shall be payable and  otherwise secured as provided in G.S. 159H-10.
(c)	In connection with entering into a loan obligation, a city or a county is authorized to enter into a credit facility, as defined in G.S. 159H-10, and the obligation of a city or a county under any such credit facility to repay any drawing thereunder may be made payable and otherwise secured, to the extent applicable, as provided in G.S. 159H-10.
(d)	The Agency or a city or a county may propose an amendment, and nothing in this Chapter shall be deemed as restricting the power of the Agency or the city or a county to agree to any amendment to a loan obligation, including an amendment restructuring or otherwise relating to the principal repayment schedule and the interest payment schedule set forth in such loan obligation, upon a determination by the Agency that such amendment is:
(1)	Consistent with the then existing financial condition of the city or the county and its ability to meet its obligations under the loan obligation; and
(2)	Consistent with the then existing financial condition of the Agency and the administration of the Agency's duties and responsibilities under this Chapter.  Any amendment relating to the term of a loan obligation shall not extend the original term more than twenty percent (20%) beyond such original term.
(e)	No loan obligation or amendment thereto shall become effective without the approval of the Local Government Commission.  In determining whether a loan obligation or any amendment thereto should be approved, the Local Government Commission may consider, to the extent applicable as shall be determined by the Local Government Commission, the criteria set forth in G.S. 159-52 and G.S. 159-86, as either may be amended from time to time.  The Local Government Commission shall approve any such loan obligation, or any amendment thereto, if, upon the information and evidence it receives, it finds and determines that such  loan obligation, or amendment thereto, will satisfy such criteria and will effect the purposes of this Chapter.  After considering a loan obligation or an amendment thereto, the Local Government Commission shall enter its order either approving or disapproving such obligation or amendment.  An order of approval shall not be regarded as an approval of the legality of such obligation or amendment in any respect.  If the Local Government Commission enters an order disapproving such obligation or amendment, the proceedings under this subsection shall be at an end.
"§ 159H-10.  Sources and security for payment of loan obligations.
(a)	The source or sources of and the security for payment of each loan obligation shall be determined by the city council of the city or the county board of commissioners for the county and shall be set forth in the loan obligation.
(b)	In the event that, under the provisions of The Local Government Bond Act, as it may be amended from time to time, a bond order authorizing the issuance of bonds that pledge the faith and credit of a city or a county for the purpose of providing funds for one or more purposes that constitute projects within the meaning of this Chapter has taken effect, then, in lieu of issuing any bonds authorized, or any bond anticipation note in anticipation of such bonds, but not sold and delivered pursuant to such order, the city council or the county board of commissioners may enter into a loan obligation authorized by this Chapter and may pledge the faith and credit of the city or the county, as the case may be, to secure its obligation to make the payments required under such loan obligation, provided the following conditions are met:
(1)	The aggregate principal amount due under such loan obligation does not exceed the aggregate amount of authorized but unissued bonds, or any bond anticipation notes in anticipation of such bonds, under the bond order; and
(2)	The project to be acquired is a purpose for which proceeds of bonds or bond anticipation notes may be expended under the bond order.
(c)	Each city and county is also hereby authorized to agree to apply to the payment of a loan obligation any available source or sources of revenues of such city and county and, to the extent the generation of such revenues is within the power of such city or county, to enter into covenants to take action in order to generate such revenues, provided such agreement to use such sources to make payments or such covenant to generate revenues does not constitute a pledge of the city's or county's taxing power.
(d)	Each city and county is also hereby authorized to enter into loan obligations constituting a continuing contract and providing for the making of payments in ensuing fiscal years from any available source or sources of revenues, including the proceeds of taxes realized from the exercise of the city's or county's power of taxation, appropriated by the city or county in its annual budget provided:
(1)	The city council or county board of commissioners shall have appropriated sufficient funds to pay any amount to be paid under such loan obligation in the fiscal year in which such contract is entered into, such appropriation to be made prior to the entering into of such loan obligation;
(2)	There is included in any such loan obligation a provision automatically cancelling the loan obligation in the event the city council or county board of commissioners decides not to appropriate funds to make payment in an ensuing fiscal year in which event the obligation of the city or county to make any future payments in any ensuing fiscal year shall cease;
(3)	No deficiency judgment requiring the exercise of the city's or county's power of taxation may be entered against the city or county in any action for breach of a contractual obligation authorized by this subsection; and
(4)	The taxing power of the city or county is not pledged to secure any payments to be made pursuant to the loan obligation and the Agency shall have agreed that it has no right to require the exercise of a city's or a county's power of taxation to secure such loan obligation.
No loan obligation shall contain a nonsubstitution clause which restricts the right of a city or county to replace or provide a substitute for any project financed pursuant to such loan obligation.
The obligation of a city or a county with respect to the sources of revenues authorized by subsections (c)	and (d) of this section shall be specifically identified in the proceedings of the city council or the county board of commissioners  authorizing the city or county to enter into a loan obligation, which loan obligation shall be valid and binding from the date the city or county enters into the loan obligation.  Such sources of payment so specifically identified and then held or thereafter received by a city or a county, any fiduciary or the Agency shall immediately be subject to the lien of such loan obligation without any physical delivery of such sources or further act, and such lien shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against a city or county without regard to whether such parties have notice thereof.  The proceedings, the loan obligation or any other document or action by which such lien on a source of payment is created need not be filed or recorded in any manner other than as provided in this Chapter.
Any loan obligation secured by a source or sources of revenue authorized by subsections (b), (c) or (d) of this section may provide additional security by the granting of a security interest in the project acquired to secure payment of the purchase money provided by such loan obligation, including a deed of trust on any real property so acquired.
(e)	The interest payable by a city or a county to the Agency on any loan obligation may be at such rate or rates, including variable rates, as may be determined by the Local Government Commission with the approval of the city council or the county board of commissioners.  Such approval may be given as the city council or the county board of commissioners may direct, including without limitation, a certificate signed by a representative of the city or the county designated by the city council or the county board of commissioners.  The Agency may determine that it is necessary that certain provisions in the Agency's bonds or notes be reflected, in similar terms, in loan obligations, so that if it is necessary to vary the interest rate or call the principal prior to maturity of certain of the Agency's bonds or notes the Agency will have the power to effect a similar variation in interest rate or a similar call prior to maturity of certain loan obligations.  Accordingly, in fixing the details of a loan obligation, the city council or the county board of commissioners is hereby authorized to provide that a loan obligation, (i) may be made payable from time to time on demand or tender for purchase by the Agency provided a credit facility supports such loan obligation, unless the city council or the county board of commissioners specifically determines that a credit facility is not required upon a finding and determination by the city council or the county board of commissioners that the absence of a credit facility will not affect the city's or the county's ability to make payment on demand or tender, and will not materially and adversely affect the financial position of the city or the county and the entering into of the loan obligation at a reasonable interest cost to the city or the county; (ii) may be additionally supported by a credit facility; (iii) may be made subject to redemption by the city or the county prior to maturity with such variations as may be permitted pursuant to a par formula; and (iv) may bear interest at a rate or rates that may vary for such period or periods of time, all as may be provided in the proceedings of the city council or the county board of commissioners providing for the entering into of the loan obligation, including, without limitation, such variations as may be permitted pursuant to a par formula.
(f)	As used in this section, the following terms shall have the following meanings:
(1)	‘Credit Facility' means an agreement entered into by the city or the county with a bank, savings and loan association or other banking institution, an insurance company, reinsurance company, surety company or other insurance institution, a corporation, investment banking firm or other investment institution, or any financial institution providing for prompt payment of all or any part of the principal or purchase price (whether at maturity, presentment or tender for purchase, redemption or acceleration), redemption premium, if any, and interest on any loan obligation payable on demand or tender by the Agency, in consideration of the city or the county agreeing to repay the provider of such credit facility in accordance with the terms and provisions of such agreement; the provider of any credit facility may be located either within or without the United States of America.
(2)	‘Par Formula' shall mean any provision or formula adopted by the city or the county to provide for the adjustment, from time to time, of the interest rate or rates borne by any loan obligation including:
a.	A provision providing for such adjustment so that the purchase price of such loan obligation in the open market would be as close to par as possible,
b.	A provision providing for such adjustment based upon a percentage or percentages of a prime rate or base rate, which percentage or percentages may vary or be applied for different periods of time,
c.	A provision providing for such adjustment based upon the adjustments of the interest rate or rates of the Agency's bonds and notes, or
d.	Such other provision as the city or the county may determine to be consistent with this Chapter and will not affect the city's or the county's ability to pay the principal of and the interest on any loan obligation, and will not materially and adversely affect the financial position of the city or the county and the entering into of the loan obligation at a reasonable interest cost to the city or the county.
(g)	Any loan obligation may provide for an acceleration of the repayment schedule thereunder.
"§ 159H-11.  Credit of State not pledged.
Bonds or notes issued by the Agency under the provisions of this Chapter shall not be secured by a pledge of the faith and credit of the State or of any political subdivision thereof or be deemed to create an indebtedness of the State, or of any such political subdivision thereof, requiring any voter approval, but shall be payable solely from Agency revenues and other funds provided therefor.  Each bond or note issued by the Agency under this Chapter shall contain on the face thereof a statement to the effect that the Agency shall not be obligated to pay the same nor the interest nor the premium thereon except from Agency revenues and other funds pledged therefor and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged as security for the payment of the principal of or the interest or premium on such Agency bond or note.
Expenses incurred by the Agency in carrying out the provisions of this Chapter shall be payable from revenues and other funds provided pursuant to, or available for use under, this act, and no liability shall be incurred by the Agency hereunder beyond the extent to which moneys shall have been so provided.
"§ 159H-12.  Bonds and notes.
(a)	The Agency may provide for the issuance, at one time or from time to time, of bonds or notes, including bond anticipation notes and renewal notes, of the Agency to carry out and effectuate its corporate purposes.  The principal of and interest on such bonds or notes shall be payable solely from funds provided under this Chapter for such payment.  Any such bond anticipation 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 Agency revenues or other funds provided therefor.  Bonds and notes may also be paid from the proceeds of any credit enhancement facility.  The bonds and notes of each issue shall be dated and may be made redeemable prior to maturity at the option of the Agency or otherwise, at such price or prices on such date or dates and upon such terms and conditions as may be determined by the Agency.  The bonds or notes may also be made payable from time to time on demand or tender for purchase by owner, all upon such terms and conditions as may be determined by the Agency.  Any such bonds or notes shall bear interest at such rate or rates, including variable rates as herein authorized, as may be determined by the Local Government Commission with the approval of the Agency.
(b)	In fixing the details of bonds or notes, the Agency may provide that any of the bonds or notes (i) may be made payable from time to time on demand or tender for purchase by the owner thereof provided a credit facility supports such bonds or notes, unless the Local Government Commission specifically determines that a credit facility is not required upon a finding and determination by the Local Government Commission that the absence of a credit facility will not materially and adversely affect the financial position of the Agency and the marketing of the bonds or notes at a reasonable interest cost to the Agency; (ii) may be additionally supported by a credit facility; (iii) may be made subject to redemption prior to maturity with such variations as may be permitted pursuant to a par formula; (iv) may bear interest at a rate or rates that may vary for such period or periods of time, all as may be provided in the proceedings providing for the issuance of such bonds or notes including, without limitation, such variations as may be permitted pursuant to a par formula; and (v) may be made the subject of a remarketing agreement whereby an attempt is made to remarket the bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the State.  As used in this section, the following terms shall have the following meanings:
(1)	‘Credit Facility' means an agreement entered into by the Agency with a bank, savings and loan association or other banking institution, an insurance company, reinsurance company, surety company or other insurance institution, a corporation, investment banking firm or other investment institution, or any financial institution providing for prompt payment of all or any part of the principal or purchase price (whether at maturity, presentment or tender for purchase, redemption or acceleration), redemption premium, if any, and interest on any bonds or notes payable on demand or tender by the owner, in consideration of the Agency agreeing to repay the provider of such credit facility in accordance with the terms and provisions of such agreement; the provider of any credit facility may be located either within or without the United States of America.
(2)	‘Par Formula' shall mean any provision or formula adopted by the Agency to provide for the adjustment, from time to time, of the interest rate or rates borne by any bonds or notes including:
a.	A provision providing for such adjustment so that the purchase price of such bonds or notes in the open market would be as close to par as possible,
b.	A provision providing for such adjustment based upon a percentage or percentages of a prime rate or base rate, which percentage or percentages may vary or be applied for different periods of time, or
c.	Such other provision as the Agency may determine to be consistent with this act and will not materially and adversely affect the financial position of the Agency and the marketing of the bonds or notes at a reasonable interest cost to the Agency.
(c)	Notes shall mature at such time or times and bonds shall mature, not exceeding 40 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 place of payment of principal and interest, which may be any bank or trust company within or without the United States.  In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or notes or coupons (if any) 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 such officer had remained in office until such delivery and any bond or note or coupon may bear the facsimile signatures of such persons who at the actual time of the execution thereof shall be the proper officers to sign although at the date of such bond or note or coupon such persons may not have been such officers.  The Agency may also provide for the authentication of the bonds or notes by a trustee or other authenticating agent.  The bonds or notes may be issued as certificated or uncertificated obligations or both, and 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, and any system for registration may be established as the Agency may determine.
(d)	No bonds or notes may be issued by the Agency under this Chapter unless the issuance thereof is approved and such bonds or notes are sold by the Local Government Commission as provided in this Chapter.  The Agency shall file with the Secretary of the Local Government Commission and application requesting approval of the issuance of such bonds or notes which application shall contain such information and shall have attached to it such documents concerning the proposed financing as the Secretary of the Local Government Commission may require.
In determining whether a proposed bond or note issue should be approved, the Local Government Commission may consider, to the extent applicable as shall be determined by the Local Government Commission, the criteria set forth in G.S. 159-52 and G.S. 159-86, as either may be amended from time to time, as well as the effect of the proposed financing upon any scheduled or proposed sale of obligations by the State or by any of its agencies or departments or by any unit of local government in the State.  The Local Government Commission shall approve the issuance of such bonds or notes if, upon the information and evidence it receives, it finds and determines that the proposed financing will satisfy such criteria and will effect the purposes of this Chapter.
Upon the filing with the Local Government Commission of a written request of the Agency requesting that its bonds or notes be sold, such bonds or notes, may be sold by the Local Government Commission in such manner, either at public or private sale, and for such price or prices as the Local Government Commission shall determine to be in the best interests of the Agency and to effect the purposes of this Chapter, provided that such sale shall be approved by the Agency.
(e)	The proceeds of any bonds or notes shall be used solely for the purposes for which such bonds or notes were 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, or in any trust agreement securing such bonds or notes.
(f)	Prior to the preparation of definitive bonds, the Agency may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds 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.
(g)	Bonds or notes may be issued under the provision 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 that are specifically required by this Chapter and the provisions of the resolution authorizing the issuance of, or any trust agreement securing, such bonds or notes.
"§ 159H-13.  Trust agreement or resolution.
In the discretion of the Agency, any bonds and notes issued under the provisions of this Chapter may be secured by a trust agreement by and between the Agency and a corporate trustee or by a resolution providing for the appointment of a corporate trustee thereunder, which corporate trustee may be, in either case, any trust company or bank having the powers of a trust company within or without the State.  Such trust agreement or resolution may pledge or assign all or part of the revenues or assets of the Agency, including, without limitation, loan obligations, agreements or commitments to enter into loan obligations, contracts, agreements and other security or investment obligations, any fees or charges made or received by the Agency, the moneys received in payment of loans and interest thereon and any other moneys received or to be received by the Agency.  Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights and remedies of the owners of any bonds or notes issued thereunder as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Agency in respect of the purposes to which bond or note proceeds may be applied, the disposition and application of the revenues or assets of the Agency, the duties of the Agency with respect to the acquisition and disposition of any project and the purchase, acceptance and disposition of any loan obligation, the charges and collection of any revenues and administrative charges, the terms and conditions for the issuance of additional bonds and notes, and the custody, safeguarding, investment and application of all moneys.  All bonds and notes issued under this Chapter shall be equally and ratably secured by a pledge, charge, and lien upon the revenues or assets provided in such trust agreement or resolution, without priority by reason of number, or dates of bonds or notes, execution, or delivery, in accordance with the provision of this Chapter and of such trust agreement or resolution; except that the Agency may provide in such trust agreement or resolution that bonds or notes issued pursuant thereto shall, to the extent and in the manner prescribed in such trust agreement or resolution be subordinated and junior in standing, with respect to the payment of principal and interest and to the security thereof, to any other bonds or notes.  It shall be lawful for any bank or trust company that may act as depositary of the proceeds of bonds or note, revenues, assets or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the Agency.  Any such trust agreement or resolution may set out the rights and remedies of the owners of any bonds or notes and of any trustee, and may restrict the individual rights of action by any such owners.  In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Agency may deem reasonable and proper for the security of the owners of any bonds or notes.  Expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of any project or as an administrative charge and may be paid from the revenues or assets pledged or assigned to the payment of the principal of and the interest on bonds and notes or from any other funds available to the Agency.
The Agency may set the terms and conditions of loan obligations, including, without limitation, the repayment terms, so as to provide a fund sufficient, with such other funds as may be made available therefor, including, without limitation, investment income and the proceeds of administrative charges to the extent determined by the Agency, (i)	to pay the costs of operation of the Agency, (ii) to pay the principal of and the interest on all bonds and notes as the same shall become due and payable, and (iii) to create and maintain any reserves provided for in the trust agreement or resolution securing such bonds or notes.
All pledges of any assets or revenues of the Agency as authorized by this Chapter shall be valid and binding from the time when such pledges are made.  All such assets or revenues so pledged and thereafter received by the Agency shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Agency, irrespective of whether such parties have notice thereof.  The trust agreement or resolution by which a pledge is created or any loan obligation need not be filed or recorded except in the records of the Agency.
The State does pledge to and agree with the holders of any bonds or notes issued by the Agency that so long as any of such bonds or notes are outstanding and unpaid the State will not limit or alter the rights vested in the Agency at the time of issuance of the bonds or notes to set the terms and conditions of loan obligations in connection with which the bonds or notes were issued, so as to provide a fund sufficient, with such other funds as may be made available therefor, including, without limitation, investment income and the proceeds of administrative charges to the extent determined by the Agency, to pay the costs of operation of the Agency, to pay the principal of and the interest on all bonds and notes as the same shall become due and payable and to create and maintain any reserves provided therefor and to fulfill the terms of any agreements made with the bondholders or noteholders, nor will the State in any way impair the rights and remedies of the bondholders or noteholders until the bonds or notes and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders or noteholders, are fully paid, met and discharged.
"§ 159H-14.  Trust Funds.
Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to the authority of this Chapter, including, without limitation, payments made under and the proceeds received from the sale or other disposition of loan obligations, proceeds received from the disposition by the Agency of any project and any other revenues and funds (except any portion, as designated by the Agency, representing administrative charges) received by the Agency, shall be deemed to be trust funds to be held and applied solely as provided in this Chapter.  The resolution authorizing the issuance of, or any trust agreement securing, any bonds or notes may provide that any of such moneys may be invested temporarily 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 of this Chapter, subject to such regulations as this Chapter or such resolution or trust agreement may provide.  Any such moneys may be deposited and invested as provided in G.S. 159-30 and G.S. 147-69.1, as either section may be amended from time to time; provided, however, that
(1)	Any deposit or investment authorized by either section may be deposited or invested with any bank located inside or outside the State, including outside the United States of America, provided that any such bank is a bank whose unsecured obligations are rated in either of the two highest rating categories by either Moody's Investors Service or Standard & Poor's Corporation; and
(2)	Any deposit or investment may be pursuant to either said section and if one section is less restrictive or the other section authorizes additional deposit and investment options the Agency may proceed under either section so that the Agency shall have the broadest deposit and investment options available under either section.
"§ 159H-15.  Remedies.
Any owner of bonds or notes issued under the provisions of this Chapter or any coupons appertaining thereto, and the trustee under any trust agreement securing or resolution authorizing the issuance of such bonds or notes, except to the extent the rights herein given may be restricted by such trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the State or granted hereunder or under such trust agreement or resolution, or under any other contract executed by the Agency pursuant to this Chapter and may enforce and compel the performance of all duties required by this Chapter or by such trust agreement or resolution by the Agency or by any officer thereof.
"§ 159H-16.  Status of Bonds and Notes Under Uniform Commercial Code.
All bonds and notes and interest coupons (if any) issued under this Chapter are hereby made investment securities within the meaning of and for all the purposes of Article 8 of the Uniform Commercial Code as enacted in this State as Chapter 25 of the General Statutes.
"§ 159H-17.  Bonds and Notes Eligible for Investment.
Bonds and notes issued under the provisions of this Chapter are hereby made securities in which all public offices, agencies and public bodies of the State and its political subdivisions, all insurance companies, trust companies, investment companies, banks, savings banks, building and loan associations, credit unions, pension or retirement funds, other financial institutions engaged in business in the State, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.  Such bonds or notes are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the State or political subdivision of the State for any purpose for which the deposit of bonds, notes or obligations of the State or any political subdivision is now or may hereafter be authorized by law.
"§ 159H-18.  Refunding bonds and notes.
(a)	The Agency may issue bonds and notes for the purposes of refunding any bonds or notes issued pursuant to this Chapter including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption or maturity of such bonds or notes and, if deemed advisable by the Agency, for any additional corporate purposes of the Agency.
Any such refunding bonds or notes may bear interest at rates, including variable rates as authorized in G.S. 159H-12, lower, the same as or higher than and have maturities shorter than, the same as or longer than the bonds or notes being refunded.  The proceeds of any such refunding bonds or notes may be applied:
(1)	To the payment and retirement of the bonds or notes being refunded by direct application to such payment and retirement,
(2)	To the payment and retirement of the bonds or notes being refunded by the deposit in trust of such proceeds,
(3)	To the payment of any expenses incurred in connection with such refunding, and
(4)	For any other uses not inconsistent with such refunding.
(b)	Any money so held in trust may be invested in:
(1)	Direct obligations of the United States of America,
(2)	Obligations the principal of and the interest on which are guaranteed by the United States of America.
(3)	Evidences of ownership of a proportionate interest in specified obligations described in (b)(1) and (b)(2) above, 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 thereof in the capacity of custodian,
(4)	Obligations of the State or local governments thereof, provision for the payment of the principal of and interest on which obligations shall have been made by deposit with a trustee or escrow agent of obligations described in (1), (2) or (3) above, the maturing principal of and interest on which, when due and payable, shall provide sufficient money with any other money held in trust for such purpose to pay the principal of, premium, if any, and interest on such obligations of the State or local governments thereof, and which are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service,
(5)	Obligations of the State or local governments thereof, the principal of and interest on which, when due and payable, have been insured by a bond insurance company which is rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service,
(6)	Full faith and credit obligations of the State or local governments thereof which are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, and
(7)	Any obligations or investments in which the State Treasurer is authorized, at the time of such investment, to invest funds of the State.
The proceedings providing for the issuance of any such refunding bonds or notes may limit the investments in which the proceeds of a particular refunding issue may be invested.
Nothing in this section shall be construed as a limitation (i)	on the duration of any deposit in trust for the retirement of bonds or notes being refunded but which shall not have matured and which shall not be then redeemable or, if then redeemable, shall not have been called for redemption or (ii) on the power to issue bonds or notes for the combined purpose of refunding bonds or notes and providing moneys for any corporate purpose as provided in this Chapter.
"§ 159H-19.  Annual audit.
The Agency shall cause an audit of its books and accounts relating to its activities under this Chapter to be made at least once in each year by an independent certified public accountant or by the State Auditor and the cost thereof may be paid from any available administrative charges or other available moneys of the Agency.
"§ 159H-20.  Officers not liable.
No member or officer of the Agency shall be subject to any personal liability or accountability by reason of his execution of any bonds or notes or the issuance thereof.
"§ 159H-21.  Tax exemption.
All of the bonds and notes authorized by this Chapter and the coupons (if any) appertaining thereto, and their transfer (including any profit made on the sale thereof), shall be exempt from all State, county and municipal taxation or assessment, direct or indirect, general or special, whether imposed for the purpose of general revenue or otherwise, excluding inheritance and gift taxes, and the interest on the bonds and notes shall not be subject to taxation as to income, nor shall the bonds, notes and coupons (if any) be subject to taxation when constituting a part of the surplus of any bank, trust company or other corporation.
"§ 159H-22.  Conflict of interest.
If any member, officer or employee of the Agency shall be interested either directly or indirectly, or shall be an officer or employee of or have an ownership interest in any firm or corporation, not including cities or counties interested directly or indirectly, in any contract with the Agency, such interest shall be disclosed to the Agency and shall be set forth in the minutes of the Agency, and the member, officer or employee having such interest therein shall not participate on behalf of the Agency in the authorization of any such contract.  Other provisions of law notwithstanding, failure to take any or all actions necessary to carry out the purposes of this section shall not affect the validity of any bonds, notes or loan obligations issued pursuant to the provisions of this Chapter.
"§ 159H-23.  Alternative method.
The foregoing sections of this Chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.
"§ 159H-24.  Liberal construction.
This Chapter, being necessary for the health and welfare of the people of the State, shall be liberally construed to effect the purposes thereof.
"§ 159H-25.  Inconsistent laws inapplicable.
Insofar as the provisions of this Chapter are inconsistent with the provisions of any general or special laws, or parts thereof, the provisions of this Chapter shall be controlling."
Sec. 1.1.  G.S. 159-148(b) reads as rewritten:
	"(b) This Article shall not apply to:
(1)	Contracts between a unit of local government and the State of North Carolina or the United States of America (or any agency of either) entered into as a condition to the making of grants or loans to the unit of local government.
(2) 	Contracts for the purchase, lease, or lease with option to purchase of motor vehicles or voting machines.
(3)	Loan obligations entered into by a city or a county pursuant to the North Carolina Municipal and County Pooled Capital Projects Financing Act, Chapter 159H of the General Statutes."
Sec. 1.2.  G.S. 105-198 reads as rewritten:
"§ 105-198. Intangible personal property.
The intangible personal properties enumerated and defined in this Article or schedule are hereby classified under authority of Sec. 2(2), Article V of the Constitution, and the taxes levied thereon are for the benefit of the State for distribution to political subdivisions of the State hereinafter provided. Banks or banking associations, trust companies or any combination of such facilities or services shall be subject to the provisions of this Article for taxable years beginning on and after January 1, 1974."
Sec. 1.3.  G.S. 150B-1(d) reads as rewritten:
	"(d) The following are specifically exempted from the provisions of this Chapter:  the Administrative Rules Review Commission, the Employment Security Commission, the Industrial Commission, the North Carolina Municipal Pooled Capital Projects Financing Agency and the North Carolina County Pooled Capital Projects Financing Agency, the Occupational Safety and Health Review Board in all actions that do not involve agricultural employers, and the Utilities Commission.
	The North Carolina National Guard is exempt from the provisions of this Chapter in exercising its court-martial jurisdiction.
The Department of Human Resources is exempt from this Chapter in exercising its authority over the Camp Butner reservation granted in Article 6 of Chapter 122C of the General Statutes.
	The Department of Correction is exempt from the provisions of this Chapter, except for Article 5 of this Chapter and G.S. 150B-13 which shall apply.
	Articles 2 and 3 of this Chapter shall not apply to the Department of Revenue.  Except as provided in Chapter 136 of the General Statutes, Articles 2 and 3 of this Chapter do not apply to the Department of Transportation.
	Article 4 of this Chapter, governing judicial review of final administrative decisions, shall apply to The University of North Carolina and its constituent or affiliated boards, agencies, and institutions, but The University of North Carolina and its constituent or affiliated boards, agencies, and institutions are specifically exempted from the remaining provisions of this Chapter.  Article 4 of this Chapter shall not apply to the State Banking Commission, the Commissioner of Banks, the Savings and Loan Division of the Department of Commerce, and the Credit Union Division of the Department of Commerce.
	Article 3 of this Chapter shall not apply to agencies governed by the provisions of Article 3A of this Chapter, as set out in G.S. 150B-38(a).
Articles 3 and 3A of this Chapter shall not apply to the Governor's Waste Management Board in administering the provisions of G.S. 104E-6.2.
Article 2 of this Chapter shall not apply to the North Carolina Low-Level Radioactive Waste Management Authority in administering the provisions of G.S. 104G-10 and G.S. 104G-11.  Articles 3 and 3A of this Chapter shall not apply to the North Carolina Low-Level Radioactive Waste Management Authority in administering the provisions of G.S. 104G-9, 104G-10, and 104G-11."
Sec. 1.4.  G.S. 120-123 is amended by adding two new subdivisions to read:
"(53a)	The North Carolina Municipal Pooled Capital Projects Financing Agency, as established by G.S. 159H-4.
(53b)	The North Carolina County Pooled Capital Projects Financing Agency, as established by G.S. 159H-5."
Sec. 2.  If any provisions of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.
Sec. 3.  This act is effective upon ratification.