GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 866*

Short Title:  Air Cargo Airport Authority.	(Public)
─────────────────────────────────────── 
Sponsors: Representatives Stamey, Pope; Abernethy, Albertson, Balmer, Barbee, Black, Bowie, Bowman, Brawley, Brubaker, Buchanan, Church, N.J. Crawford, Creech, Culp, Dawkins, Dockham, Esposito, Ethridge, Fitch, Fletcher, Gamble, Gray, Greenwood, Grimmer, Hardaway, Hasty, Hege, Hensley, Jack Hunt, Sam Hunt, H. Hunter, Hurley, Isenhower, James, Jarrell, Jeffus, Jordan, Justus, Kerr, Ligon, Lilley, Lineberry, Lutz, McLawhorn, Morgan, Nesbitt, Privette, Rhodes, Rhyne, Rogers, Russell, Smith, Tallent, Warner, Wicker, Wilson, and Woodard.
─────────────────────────────────────── 
Referred to:  Transportation.
─────────────────────────────────────── 

April 18, 1991

A BILL TO BE ENTITLED
AN ACT CREATING THE NORTH CAROLINA AIR CARGO AIRPORT AUTHORITY, AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO FINANCE AIRPORT AND INDUSTRIAL FACILITIES AND AUTHORIZING UNITS OF LOCAL GOVERNMENT TO TAKE CERTAIN ACTIONS IN CONNECTION THEREWITH.
The General Assembly of North Carolina enacts:
Section 1.  A new Chapter is added to the General Statutes to read:
"Chapter 159J.
"North Carolina Air Cargo Airport Authority.
"§ 159J-1.  Short title.
This Chapter may be cited as the 'North Carolina Air Cargo Airport Authority Act.'
"§ 159J-2.  Findings and purpose.
The General Assembly finds that there is a need to provide for the creation of a body politic and corporate to own, operate, and finance global air cargo facilities within North Carolina and industrial facilities in connection therewith.  The purpose of this Chapter is to provide for the creation of such body politic and corporate with power to accomplish the following general purposes:
(1)	To develop and improve public air cargo airports, cargo handling systems necessary for the efficient operation of cargo airports, infrastructure necessary to support human traffic connected with such complexes, and works of internal improvements incident thereto;
(2)	To acquire and hold land, develop and improve said land for industrial and commercial use related or adjacent to cargo airport complexes, and to sell or lease said land to private or public interests for said industrial or commercial uses;
(3)	To foster and stimulate the shipment of freight and commerce through such cargo airport complexes, whether originating within or without the State of North Carolina, including the investigation and handling of matters pertaining to all transportation rates and rate structures affecting the same; and
(4)	To cooperate with the United States of America and any agency, department, corporation, or instrumentality thereof in the maintenance, development, improvement, and use of such cargo airport complexes in connection with and in furtherance of the operations and needs of the United States.
This Chapter is enacted in part pursuant to Article V, Section 13 of the Constitution with the intent that the body politic and corporate created hereby shall have all power and authority as may be provided to it under such section.
"§ 159J-3.  Definitions.
Unless a different meaning is required by the context, the following definitions shall apply throughout this Chapter:
(1)	'Aircraft' means any contrivance now known, or hereafter invented, used or designed for navigation of or flight in the air.
(2)	'Airport Project' means any land, equipment, 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 a cargo airport and any other facilities on a cargo airport site other than special user projects, including any infrastructure improvements, such as railroad facilities, roads, bridges or water, sewer or electric utilities relating to the cargo airport site, even if not located thereon.
(3)	'Authority' means the North Carolina Air Cargo Authority.
(4)	'Board' means the board of directors of the Authority or any other governing body of the Authority succeeding to the principal functions of the Authority.
(5)	'Bonds' means the revenue bonds authorized to be issued by the Authority under this Chapter.
(6)	'Cargo Airport' means any area of land or water which is designed for the landing and takeoff of aircraft, whether or not facilities are provided for the shelter, servicing, or repair of aircraft, or for receiving or discharging primarily cargo with some passengers, and all appurtenant areas used or suitable for airport buildings or other airport facilities, and all appurtenant rights-of-way, whether heretofore or hereafter established.
(7)	'Cargo Airport Complex' means any cargo airport complex designated as such by the Authority.
(8)	'Cargo Airport Site' means one or more tracts of property designated by the Authority as the location of a cargo airport complex.
(9)	'Costs' means the capital cost of acquiring or constructing any  project, including, without limitation, the following:
	a.  The costs of doing any or all of the following:
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, air 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 or construction of such project and for one year thereafter;
e.	The costs of services to provide plans, specifications, studies and reports, surveys, and estimates of costs and revenues;
f.	The costs of paying any interim financing, including principal, interest and premium, related to the acquisition or construction 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)	'Financing Agreement' means a written instrument establishing the rights and responsibilities of the Authority and the operator with respect to a special user project financed by the issuance of bonds.  A financing agreement may be in the nature of a lease, a lease and lease-back, a sale and lease-back, a lease purchase, an installment sale and purchase agreement, a conditional sales agreement, a secured or unsecured loan agreement or other similar contract, and may involve property in addition to the property financed with the bonds.
(11)	'Governing Body' means the board, commission, council or other body in which the general legislative powers of any county or other political subdivision are vested.
(12)	'Local Government Commission' means the Local Government Commission of the Department of the State Treasurer, established by Article 2 of Chapter 159 of the General Statutes and any successor of said Commission.
(13)	'Notes' means the revenue notes or revenue bond anticipation notes authorized to be issued by the Authority under this Chapter.
(14)	'Obligor' means any person, including an operator, which has entered into a financing or other agreement obligating itself to make payments to the Authority or holders of bonds issued to finance a special user project.
(15)	'Operator' means the person or persons entitled to the use or occupancy of a special user project.
(16)	'Person' means any person, corporation, partnership, association, trust or other legal entity.
(17)	'Project' means an airport project or a special user project.
(18)	'Revenues' means, with respect to any special user project, the rents, fees, charges, payments, proceeds and other income or profit derived therefrom or from the financing agreement or security document in connection therewith.  'Revenues' means, with respect to any airport project, the rents, fees, charges, payments, proceeds or other income or profit derived therefrom or from any appropriation, payment or pledge of nontax revenues made by the State or a county in which the cargo airport site is located or tax revenues from such county pursuant to G.S. 159J-17.
(19)	'Security Document' means a written instrument or instruments establishing the rights and responsibilities of the Authority and the holders of bonds issued to finance a special user project, and may provide for, or be in the form of an agreement with, a trustee for the benefit of such bondholders.  A security document may contain an assignment, pledge, mortgage or other encumbrance of all or part of the Authority's interest in, or right to receive revenues with respect to, a special user project and any other property provided by the operator or other obligor under a financing agreement and may bear any appropriate title.  A financing agreement and a security document may be combined as one instrument.
(20)	'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, located on a cargo airport site, and any rehabilitation, improvement, renovation or enlargement of, or any addition to, any building or structure for use as or in connection with (i) any industrial project for industry which project may be any industrial or manufacturing factory, mill, assembly plant or fabricating plant, or freight terminal, or industrial research, development or laboratory facility, or industrial processing facility or distribution facility for industrial or manufactured products, or (ii) any commercial, processing, mining, transportation, distribution, storage, marine, aviation, or environmental facilities and improvements, or (iii) any combination of projects mentioned in clauses (i) and (ii) of this subdivision.  Any special user project may include all appurtenances and incidental facilities such as land, headquarters or office facilities, warehouses, distribution centers, access roads, sidewalks, utilities, railway sidings, trucking and similar facilities, parking facilities, waterways, docks, wharves and other improvements necessary or convenient for the construction, maintenance and operation of any building or structure, or addition thereto.
"§ 159J-4.  Creation of Authority; members.
(a)	There is hereby created the North Carolina Air Cargo Airport Authority which shall be a body corporate and politic having the powers and jurisdiction hereinafter enumerated, and such other and additional powers as may from time to time be conferred upon the Authority by further acts of the General Assembly.  The Authority shall be a public agency and an instrumentality of the State for the performance of essential governmental and public functions.
(b)	The Board of Directors of the Authority shall be its governing board, which shall consist of not less than 10 members.  Three members shall be appointed by the Governor; two 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; two members shall be appointed by the General Assembly upon the recommendation of the President of the Senate in accordance with G.S.120-121; and two members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S.120-121; the State Treasurer shall serve as a member by virtue of his office; and within 90 days after the acquisition of land by the Authority for development as part of a cargo airport site, either by purchase or condemnation, the board of county commissioners in any county in which a portion of such land is located may, by a majority vote of those commissioners in attendance, appoint one member to serve on the Authority.
(c)	Appointments made shall be for the terms set forth by the following:
(1)	Appointments made by the Governor shall be for a term of four years, initially ending on December 31, 1995; and
(2)	Appointments made by the General Assembly upon the recommendation of the Speaker of the House of Representatives, the President of the Senate, or the President Pro Tempore of the Senate shall be made in accordance with G.S. 120-121 for a term of four years, initially ending on December 31, 1995; and
(3)	Appointments made by the boards of county commissioners shall be for a term of four years, initially ending on the second December 31 occurring after such appointment.
The members of the Authority appointed by the governor shall be selected from the State-at-large and insofar as practicable shall represent the geographical regions of the State and shall be representative of business, agribusiness, and industrial interests of the State.  The Governor shall convene the first meeting, at which time the members of the Authority shall elect from their membership a chairman and vice-chairman of the Authority.
(d)	All members of the Board shall remain in office until their successors are appointed and qualify.  Vacancies in appointments made by the Governor or a board of county commissioners shall be filled by the Governor or the county commissioners for the remainder of the unexpired terms.  Vacancies in appointments made by the General Assembly upon the recommendation of the Speaker of the House of Representatives, the President of the Senate, or the President Pro Tempore of the Senate shall be filled in accordance with G.S. 120-122.  Persons appointed to fill vacancies shall qualify in the same manner as persons appointed for full terms.
(e)	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, and the resulting vacancy shall be filled as provided herein for vacancies in general.
(f)	The Board shall adopt bylaws with respect to the calling of meetings, quorums, voting procedures, the keeping of records and such other organizational and administrative matters as the Board may determine.  A quorum shall consist of no less than five members of the Board.
(g)	No vacancy in the membership of the Board shall impair the right of a quorum to exercise all rights and to perform all the duties of the Board and the Authority.
(h)	No part of the revenues or assets of the Authority shall inure to the benefit of or be distributable to its members or officers or other private persons.  The members of the Board 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.
"§ 159J-5.  Powers of the Authority.
(a)	The Authority shall have all of the powers necessary or convenient to carry out and to effect the purposes and provisions of this Chapter for promoting, developing, constructing, equipping, maintaining and operating cargo airports, cargo handling systems, infrastructure necessary to support human traffic, industrial and commercial property within cargo airport complexes, and works of internal improvements incident thereto, including the acquisition or construction, maintenance and operation at such complexes of highways and bridges thereon or essential for the proper operation thereof, including, without limitation, the powers:
(1)	To sue and be sued, to make contracts, and to adopt and use a common seal, and to alter the same as may be deemed expedient;
(2)	To purchase, acquire, establish, finance, construct, own, control, lease, sell, equip, improve, maintain, operate, and regulate cargo airport complexes and for any of such purposes, to own, hold, finance, lease, sell, and/or operate real or personal property;
(3)	To charge and collect fees and rents for the use of the cargo airport complexes or for services rendered in the operation thereof;
(4)	To make all necessary contracts and arrangements with other authorities of North Carolina and other states for the interchange of business, and for such other purposes as will facilitate and increase the business of cargo airport complexes.
(5)	To rent, lease, buy, own, acquire, mortgage, otherwise encumber, and dispose of such property, real or personal, as the Authority may deem proper to carry out the purposes and provisions of this Chapter or all or any of them, such powers, including the power of eminent domain, to be exercised without review or concurrence by the Council of State;
(6)	To acquire, construct, maintain, equip and operate any structure, and facilities necessary or beneficial for the convenient use of the same in the aid of commerce, including the construction of beltline roads and highways and bridges thereon, necessary or useful in connection with the business of the Authority and shipping and transportation facilities incident thereto, and useful or convenient for the use of the Authority, including electronic cargo transfer systems and mass transit systems;
(7)	To appoint an executive director, whose salary shall be fixed by the Authority, to serve at its pleasure.  The executive director or his designee shall appoint, employ, dismiss and, within the limits of available funding, fix the compensation of such other employees as he deems necessary to carry out the purposes of this Chapter.  There shall be an executive committee consisting of the chairman of the Authority and two other members elected annually by the Authority.  The executive committee shall be vested with authority to do all acts which are authorized by the bylaws of the Authority.  Members of the executive committee shall serve until their successors are elected;
(8)	To establish an office for the transaction of its business at such place or places as, in the opinion of the Authority, shall be advisable or necessary in carrying out the purposes of this Chapter;
(9)	To create and operate such agencies and departments as the Authority may deem necessary or useful for the furtherance of any of the purposes of this Chapter;
(10)	To pay all necessary costs and expenses involved in and incident to the formation and organization of the Authority, and incident to the administration and operation thereof, and to pay all other costs and expenses reasonably necessary or expedient in carrying out and accomplishing the purposes of this Chapter;
(11)	To apply for, accept and administer loans and grants of money from any federal agency or the State of North Carolina or any political subdivision thereof or from any public or private sources available for any and all of the purposes authorized in this Chapter, and to expend the same in accordance with the directions and requirements attached thereto, or imposed thereon by any such federal agency, the State of North Carolina, or any political subdivision thereof, or any public or private lender or donor, and to give such evidences of indebtedness as shall be required; provided, however, that no indebtedness of any kind incurred or created by the Authority shall constitute an indebtedness of the State of North Carolina, or any political subdivision thereof, and no such indebtedness shall involve or be secured by the faith, credit or taxing power of the State of North Carolina, or any political subdivision thereof except indirectly as permitted by G.S. 159J-17;
(12)	To act as agent for the United States of America, or any agency, department, corporation, or instrumentality thereof, in any matter coming within the purposes or powers of the Authority;
(13)	To adopt, alter or repeal its own bylaws, rules and regulations governing the manner in which its business may be transacted and in which the power granted to it may be enjoyed, and may provide for the appointment of such committees, and the functions thereof, as the Authority may deem necessary or expedient in facilitating its business;
(14)	To receive, administer and comply with the conditions and requirements respecting any gift, grant or donation of any property or money;
(15)	To make and execute financing agreements, security documents and other contracts and instruments necessary or convenient in the exercise of the powers and functions of the Authority under this Chapter;
(16)	To pledge or assign revenues of the Authority;
(17)	To construct, acquire, own, repair, maintain, extend, improve, rehabilitate, renovate, furnish and equip one or more projects and to pay all or any part of the costs thereof from the proceeds of bonds of the Authority or from any contribution, gift or donation or other funds made available to the Authority for such purpose;
(18)	To fix, charge and collect revenues with respect to any projects;
(19)	To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and such other consultants and employees as may be required in the judgment of the Authority and to fix and pay their compensation from funds available to the Authority therefor and to select and retain the financial consultants, underwriters, and bond attorneys to be associated with the issuance of any bonds and to pay for services rendered by underwriters, financial consultants, or bond attorneys out of the proceeds of any such issue with regard to which the services were performed;
(20)	To issue revenue bonds of the Authority as hereinafter provided to pay the cost of such acquisition, construction, reconstruction, improvement, extension, enlargement, or equipment of projects;
(21)	To issue revenue refunding bonds of the Authority as hereinafter provided;
(22)	To provide for the defense of civil and criminal actions and payment of civil judgments against employees and officers or former employees and officers and members or former members of the Board as authorized by G.S. 160A-167, as amended;
(23)	To purchase real or personal property as provided by G.S. 160A-20, in addition to any other method allowed under this Chapter, to the same extent and on the same conditions as if the Authority were listed in such provision;
(24)	To procure and keep in force adequate insurance or otherwise provide for the adequate protection to indemnify and save harmless it and its officers, agents, employees, adjoining property owners, or the general public against loss or liability resulting from any act or omission by or on behalf of the Authority, and for the protection of its property;
(25)	To enter into agreements with counties pursuant to G.S. 159J-17 and enforce pledges of payments made pursuant thereto;
(26)	To exercise the powers granted political subdivisions under the Model Airport Zoning Act contained in Article 4, Chapter 63 of the General Statutes and to exercise the powers granted to counties or municipalities under Article 6, Chapter 63 of the General Statutes governing public airports and related facilities;
(27)	With the approval of any unit of local government, to use officers, employees, agents, and facilities of the unit of local government for such purposes and upon such terms as may be mutually agreeable; and
(28)	To do all acts and things necessary, convenient or desirable to carry out the purposes, and to exercise the powers herein granted.
(b)	In order to execute the powers enumerated in subsection (a), the Board shall determine the policies of the Authority by majority vote of all members of the Board present and voting.  Once a policy is determined, the Board shall communicate it to the executive director, who shall have the sole and exclusive authority to execute the policy of the Authority.  No member of the Board shall have the responsibility or authority to give operational directives to any employee of the Authority other than the executive director.
"§ 159J-6.  Property of Authority not subject to taxation; public purpose.
The property of the Authority shall not be subject to any taxes or assessments thereon.  Any lands acquired, owned, controlled, or occupied by the Authority shall, and are hereby declared to be acquired, owned, controlled, and occupied for a public purpose.
"§ 159J-7.  Acquisition of property; exchange.
For the acquiring of any property, the Authority shall have the right and power to acquire the same by purchase, by negotiation, by gift, by devise, or by eminent domain.  Should it elect to exercise the right of eminent domain, proceedings shall be maintained by and in the name of the Authority, and it may proceed in the manner provided by the general laws of the State of North Carolina for the procedure by any county, municipality, or authority organized under the laws of this State, or by the Board of Transportation, or in any other manner provided by law, as the Authority may, in its discretion, elect.  The Authority's power of eminent domain shall apply to property of persons, State agencies, or units of local government already devoted to public use.  Transfer of land owned by the State shall not be subject to review or approval by the Governor and Council of State, and the Secretary of the Department of Administration is authorized to execute and deliver a deed transferring fee simple title for such property to the Authority.
The Authority may exchange any property or properties acquired under the authority of this Chapter for other property, or properties usable in carrying out the powers hereby conferred, and also may remove from lands needed for its purposes and reconstruct on other locations, buildings, terminals, or other structures, upon the payment of just compensation, if in its judgment, it is necessary or expedient so to do in order to carry out any of its plans for development, under the authorization of this Chapter.
"§ 159J-8.  Police power.
(a)	The jurisdiction of the Authority in any cargo airport or industrial properties within the State shall extend to all cargo airport sites and all other properties owned by or under control of the Authority.
(b)	All the provisions of Chapter 20 of the General Statutes relating to the use of the highways of the State and the operation of motor vehicles thereon are hereby made applicable to the streets, alleys, and driveways on the properties owned by or under the control of the Authority.  Any person violating any of the provisions of said Chapter in or on such streets, alleys, or driveways shall, upon conviction thereof, be punished as therein prescribed.
(c)	The Authority may make such reasonable rules, regulations, and adopt such additional ordinances with respect to the use of the streets, alleys, driveways, and to the establishment of parking areas of the properties of the Authority and relating to the safety and welfare of persons using the property of the Authority.  All rules, regulations, and ordinances adopted pursuant to the authority of this subsection shall be recorded in the proceedings of the Authority and printed and a copy of such rules, regulations, and ordinances shall be filed in the office of the Attorney General of North Carolina and the Authority shall cause to be posed, at appropriate places on the properties of the Authority, notice to the public of applicable rules, regulations, and ordinances as may be adopted under the authority of this subsection.  Any person violating any such rules, regulations, or ordinances shall, upon conviction thereof, be guilty of a misdemeanor and shall be punished by a fine of not exceeding fifty dollars ($50.00) or imprisonment not to exceed 30 days.
(d)	The executive director of the Authority may appoint such number of employees of the Authority as he may think proper as special police officers.  Such police officers shall have the power of arrest of persons committing violations of federal or State law or any reasonable rules, regulations, and ordinances lawfully adopted by the Authority as herein authorized and any other powers to the same extent as special police officers of incorporated towns.  Employees appointed as such special police officers shall take the general oath of office prescribed by G.S. 11-11.
"§ 159J-9. Treasurer.
The Authority shall select its own treasurer.  The Authority shall require a surety bond of such appointee in such amount as the Authority may fix, and the premium or premiums thereon shall be paid by said Authority as a necessary expense of said Authority.
"§ 159J-10. Authority funds.
All Authority funds shall be deposited in a bank or banks to be designated by the Authority.  Funds of the Authority shall be paid out only upon warrants signed by the treasurer or assistant treasurer of the Authority and countersigned by the chairman, the acting chairman, or the executive director.  No warrants shall be drawn or issued disbursing any of the funds of the Authority except for a purpose authorized by this Chapter and only when the account or expenditure for which the same is to be given in payment has been audited and approved by the Authority or its executive director.
"§ 159J-11.  State Auditor oversight.
The operations of the Authority shall be subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes.
"§ 159J-12.  Public bidding.
(a)	All of the provisions of Article 3 of Chapter 143 of the General Statutes relating to the purchase of supplies, material, and equipment by the State government are hereby made applicable to the Authority.  All of the provisions of Chapter 143 of the General Statutes relating to public building contracts are hereby made applicable to the Authority for those construction projects which may be funded, in whole or in part, by appropriations from the General Assembly.
(b)	Notwithstanding subsection (a) of this section, Article 3 of Chapter 143 of the General Statutes shall not apply to any special user project not owned by the Authority or to the letting of any contract for services listed in 49 U.S.C. section 2210(a)(16) or any successor provision.
"§ 159J-13.  Bonds.
(a)	The Authority may provide for the issuance at one time or from time to time of bonds and notes, including bond anticipation notes and renewal notes, of the Authority to carry out and effectuate its corporate purposes including financing the costs of projects.  The principal of and interest on such bonds or notes shall be payable solely from funds provided under this Chapter for such payment.  Any 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, notes may be paid from any available Authority revenues or other funds provided for this purpose.  Bonds and notes may also be paid from the proceeds of any credit facility.  The bonds and notes of each issue shall be dated and may be made redeemable prior to maturity at the option of the Authority or otherwise, at such price or prices, on such date or dates, and upon such terms and conditions as may be determined by the Authority.  The bonds or notes may also be made payable from time to time on demand or tender for purchase by their owner, all upon such terms and conditions as may be determined by the Authority.  Any such bonds or notes shall bear interest at such rate or rates, including variable rates, as may be determined by the Local Government Commission with the approval of the Authority.
(b)	In fixing the details of bonds or notes, the Authority may provide that any of the bonds or notes may:
(1)	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, based 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 Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority;
(2)	Be additionally supported by a credit facility;
(3)	If such bonds or notes are issued to finance an airport project, be additionally supported by a pledge of any agreement entered into pursuant to G.S. 159J-17;
(4)	Be made subject to redemption or a mandatory tender for purchase prior to maturity;
(5)	Be capital appreciation bonds;
(6)	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
(7)	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 Authority.
(c)	As used in this section:
(1)	'Credit facility' means an agreement entered into by the Authority 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 Authority 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' means any provision or formula adopted by the Authority 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 the adjustment so that the purchase price of the bonds or notes in the open market would be as close to par as possible;
b.	A provision providing for the 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 provisions as the Authority may determine to be consistent with this Chapter and will not materially and adversely affect the financial position of the Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority.
(d)	Notes and bonds shall mature at such time or times, not exceeding 40 years from their date or dates, as may be determined by the Authority.  The Authority 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 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 this officer before the delivery thereof, this signature or the facsimile shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until the 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 the bond or note or coupon the persons may not have been these officers.  The Authority 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 Authority may determine.  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.  Any system for registration may be established as the Authority may determine.
Bonds or notes may be secured by a reserve fund created therefor and funded from proceeds of such bonds or notes, revenues, or any other source of funds available to the Authority.
(e)	No bonds or notes may be issued by the Authority under this Chapter unless the issuance thereof is approved and the bonds or notes are sold by the Local Government Commission as provided in this Chapter.  The Authority shall file with the Secretary of the Local Government Commission an application requesting approval of the issuance of the bonds or notes which application shall contain any such information and shall have attached to it any 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 well as the effect of the proposed financing upon any scheduled or proposed sale of obligations by the State, 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 Authority requesting that its bonds or notes be sold, the 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 interest of the Authority and to effect the purposes of this Chapter, provided that the sale shall be approved by the Authority.
Each bond or bond anticipation note that is represented by an instrument shall bear on its face or reverse a certificate signed by the Secretary of the Local Government Commission or an assistant designated by him that the issuance of the bond or note has been approved under the provisions of this act.  Such signature may be a manual or facsimile signature as the Local Government Commission may determine.  Each bond or bond anticipation note that is not represented by an instrument shall be evidenced by a writing relating to such obligation, which writing shall identify such obligation or the issue of which it is part, bear such certificate and be on file with the Local Government Commission.  The certificate shall be conclusive evidence that the requirements of this act have been observed.
(f)	The proceeds of any bonds or notes shall be used solely for the purposes for which the bonds or notes were issued and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of, or in any trust agreement securing, such bonds or notes.
(g)	Prior to the preparation of definitive bonds, the Authority may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery.  The Authority may also provide for the replacement of any bonds or notes which shall become mutilated or shall be destroyed or lost.
(h)	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 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.
(i)	In the discretion of the Authority any obligations issued under the provisions of this Chapter may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State and, in the case of a special user project, a deed of trust of which the trustee may be an individual who is a resident of the State.  It shall be lawful for any bank or trust company incorporated under the laws of the State which may act as depository of the proceeds of obligations, revenues, or other money under this Chapter to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority.  The pledge of any assets, income or revenues of the Authority to the payment of the principal of or the interest on any obligations of the Authority shall be valid and binding from the time when the pledge is made, and any such assets, income or revenues immediately shall 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 Authority, irrespective of whether such parties have notice thereof.
(j)	The resolution authorizing any obligations or the trust agreement securing the same may provide that any moneys held pursuant thereto 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 such moneys or any other moneys of the Authority other than proceeds of bonds issued to finance special user projects may be invested as provided in G.S. 159-30 or any successor provision thereof.  Notwithstanding the preceding sentence, in connection with or incidental to the acquisition or carrying of any investment or program of investment relating to bonds, or carrying of bonds, the Authority may from time to time enter into such contracts as the Authority may determine to be necessary or appropriate to place the investment or obligation of the Authority, as represented by the bonds, investment, or program of investment and the contract or contracts, in whole or in part, on the interest rate, currency, cash-flow, or other basis as the Authority may desire, including without limitation interest rate swap agreements, currency swap agreements, insurance agreements, forward payment conversion agreements, futures, contracts providing for payments based on levels of, or changes in, interest rates, currency exchange rates or stock or other indices, contracts to exchange cash flows or a series of payments and contracts to hedge payment, currency, rate, spread, or similar exposure, including without limitation interest rate floors or caps, options, puts, and calls.  These contracts or arrangements may also be entered into by the Authority in connection with, or incidental to, entering into or maintaining any agreement which secures bonds.  Such contracts shall contain such payment, security, term (which may be greater or less than one year), default, remedy and other terms and conditions as the Authority may deem appropriate and shall be entered into with such party or parties as the Authority may select, after giving due consideration, where applicable for the creditworthiness of the counterparty or counterparties, including any rating by a nationally recognized rating agency or any other criteria as may be appropriate.  In connection with, or incidental to, the issuance or carrying of bonds, or entering into any of the contracts or arrangements referred to in this section, the Authority may enter into credit enhancement or liquidity agreements, with payment, interest rate, termination date, currency, security, default, remedy, and other terms and conditions as the Authority determines.  Proceeds of bonds and any moneys set aside and pledged to secure payment of bonds or any of the contracts entered into pursuant to this section, may be pledged to and used to service any of the contracts or agreements entered into pursuant to this section.
Proceeds of bonds issued to finance special user projects may be invested as provided in the security document therefor.
(k)	Obligations issued under the provisions of this Chapter are hereby made securities in which all public offices and public bodies of the State and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.  Such obligations are hereby made securities which may properly and legally be deposited with and received by any State or municipal officer or any agency or political subdivision of the State for any purpose for which the deposit of bonds, notes, or obligations of the State is now or may hereafter be authorized by law.
(l)	The Authority may provide for the issuance of refunding obligations for the purpose of refunding any obligations then outstanding which shall have been issued under the provisions of this Chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such obligations and, if deemed advisable by the Authority, for any corporate purpose of the Authority.  The issuance of such obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Authority in respect of the same shall be governed by the provisions of this Chapter which relate to the issuance of obligations, insofar as such provisions may be appropriate therefor.
Refunding obligations may be sold or exchanged for outstanding obligations issued under this Chapter, and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding obligations.
Any such refunding bonds or notes may bear interest at rates, including variable rates, 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.
(m)	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 subdivisions (1) and (2) of this subsection, 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 of the State, 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 subdivisions (1), (2), or (3) of this subsection, the maturing principal of any 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 units of local government and which are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, Inc.;
(5)	Obligations of the State or local governments of the State, 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, Inc.;
(6)	Full faith and credit obligations of the State or local governments of the State, which are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, Inc.; or
(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 refunding bonds or notes may limit the investments in which the proceeds of a particular refunding issue may be invested.
(n)	Nothing in this section shall be construed as a limitation on:
(1)	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
(2)	The power to issue bonds or notes for the combined purpose of refunding bonds or notes and providing moneys for any other corporate purpose as provided in this Chapter.
(o)	Any obligations issued by the Authority under the provisions of this Chapter, the interest paid thereon, their transfer and the income therefrom (including any profit made on the sale thereof), shall at all times be exempt from taxation by the State or any local unit or political subdivision or other instrumentality of the State, excepting inheritance or gift taxes.
(p)	Except as permitted by G.S. 159J-17, obligations issued under the provisions of this Chapter shall not be deemed to constitute a debt, liability, or obligation of the State or of any other public body in the State secured by a pledge of the faith and credit of the State or of any other public body in the State, respectively, but shall be payable solely from the revenues, income or assets of the Authority pledged thereto.  Each obligation issued shall contain on its face a statement to the effect that the Authority shall not be obligated to pay the same or the interest thereon except from the revenues, income, or assets pledged therefor and that neither the faith and credit nor the taxing power of the State or of any other public body in the State is pledged to the payment of the principal of or the interest on such obligation, except as permitted by G.S. 159J-17.
(q)	The State of North Carolina does pledge to and agree with the holders of any bonds or bond anticipation notes heretofore or hereafter issued by the Authority that so long as any such bonds or notes are outstanding and unpaid the State will not limit or alter the rights vested in the Authority at the time of issuance of the bonds or notes to establish, maintain, revise, charge, and collect such rates, fees, rentals, tolls, and other charges for the use, services, facilities, and commodities of or furnished by the project in connection with which the bonds or notes, or bonds or notes refunded by the bonds or notes, were issued as shall produce revenues at least sufficient with other available funds to meet the expense of maintenance and operation of and renewal and replacements to such project, including reserves therefor, to pay when due the principal, interest, and redemption premiums (if any) of the bonds or notes, 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.
"§ 159J-14.  Special user project bonds.
(a)	The Authority may also, subject to the provisions of this section, issue, at one time or from time to time, bonds and notes to finance or refinance special user projects.
(b)	Bonds and note may be sold to finance or refinance special user projects irrespective of the interest limitations set forth in G.S. 24-1.1 as amended, and successor provisions.
(c)	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.
(d)	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.
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.
(e)	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. 143B-463 shall have no application to funds and moneys derived pursuant to this section.
(f)	The provisions of G.S. 25-9-104(e) and G.S. 25-9-302(6) to the contrary notwithstanding, the provisions of Article 9 of the North Carolina Uniform Commercial Code, being G.S. 25-9-101 to G.S. 25-6-607, inclusive, shall apply to transactions under this section (but not to transactions involving the issuance of bonds for airport projects) to the same extent the provisions of such Article 9 would apply were G.S. 25-9-104(e) and G.S. 25-9-302(6) hereby repealed.
(g)	If the Authority is required by federal tax law to obtain allocation of the unified volume limitation on private activity bonds with respect to any bonds issued under this Chapter, the Authority shall apply to the North Carolina Federal Tax Reform Allocation Committee for such allocation.  In the event the Authority makes such application on or before October 1 of a calendar year, such Committee shall allocate a portion of the unified volume limitation for private activity bonds to the Authority for such bonds, but only to the extent such volume limitation remains available at the time the application is received by the Committee.  If application for such allocation is made after October 1 of any year, the Committee shall consider it for approval in accordance with its rules then in effect.
(h)	To the extent that federal tax law requires public hearings to be held with respect to the issuance of bonds to finance special user projects, such hearings may be called for by the executive director and held before one or more members of the Board of the Authority.  Such hearings may be held at any place within the State pursuant to public notice thereof given in accordance with current federal tax regulations.  To the extent federal tax law requires approval following such hearing of the issuance of bonds to fiance a special user project, such approval shall be sought from the Governor following a report to the Governor of the results of the public hearing accompanied by information relating to the purposes for the proposed bond issue.
"§ 159J-15.  Financing agreements.
Every financing agreement shall provide that:
(1)	The amounts payable under the financing agreement shall be sufficient to pay all of the principal of and redemption premium, if any, and interest on the bonds that shall be issued by the Authority to pay the cost of the special user project as the same shall respectively become due;
(2)	The operator shall pay all costs incurred by the Authority in connection with the financing and administration of the special user project, except as may be paid out of the proceeds of bonds or otherwise, including, but without limitation, insurance costs, the cost of administering the financing agreement and the security document and the fees and expenses of the fiscal agent or trustee, paying agents, attorneys, consultants, and others;
(3)	The operator shall pay all the costs and expenses of operation, maintenance, and upkeep of the special user project; and
(4)	The operator's obligation to provide for the payment of the bonds in full shall not be subject to cancellation, termination, or abatement until such payment of the bonds or provision therefor shall be made.
The financing agreement, if in the nature of a lease agreement, shall either provide that the obligor shall have an option to purchase, or require that the obligor purchase, the special user project upon the expiration or termination of the financing agreement subject to the condition that payment in full of the principal of, and the interest and any redemption premium on, the bonds, or provision therefor, shall have been made.
The financing agreement may provide the Authority with rights and remedies in the event of a default by the obligor thereunder including, without limitation, any one or more of the following:
(1)	Acceleration of all amounts payable under the financing agreement;
(2)	Reentry and repossession of the special user project;
(3)	Termination of the financing agreement;
(4)	Leasing or sale of foreclosure of the special user project to others; and
(5)	Taking whatever actions at law or in equity may appear necessary or desirable to collect the amounts payable under, and to enforce covenants made in, the financing agreement.
The Authority's interest in a special user project under a financing agreement may be that of owner, lessor, lessee, conditional or installment vendor, mortgagor, mortgagee, secured party, or otherwise, but the Authority need not have any ownership or possessory interest in the special user project.
The Authority may assign all or any of its rights and remedies under the financing agreement to the trustee or the bondholders under a security document.
Any such financing agreement may contain such additional provisions as in the determination of the Authority are necessary or convenient to effectuate the purposes of this Chapter.
"§ 159J-16.  Security documents.
Bonds issued under the provisions of this Chapter may be secured by a security document which may be a trust instrument between the Authority and a bank or trust company or individual within the State, or a bank or a trust company without the State, as trustee.  Such security document may pledge and assign the revenues provided for the security of the bonds, including proceeds from the sale of any project, or part thereof, insurance proceeds and condemnation awards, and may convey or mortgage the project and other property to secure a bond issue.
The revenues and other funds derived from the project, except such part thereof as may be necessary to provide reserves therefor, if any, may be set aside at such regular intervals as may be provided in such security document in a sinking fund which may be thereby pledged to, and charged with, the payment of the principal of and the interest on such bonds as the same shall become due and the redemption price or the purchase price of bonds retired by call or purchase as therein provided.  Such pledge shall be valid and binding from the time when the pledge is made.  The revenues so pledged and thereafter received by the Authority 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 Authority, irrespective of whether such parties have notice thereof.  The use and disposition of money to the credit of such sinking fund shall be subject to the provisions of the security document.  Such security document may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including, without limitation, any one or more of the following:
(1)	Acceleration of all amounts payable under the security document;
(2)	Appointment of a receiver to manage the project and any other property mortgaged or assigned as security for the bonds;
(3)	Foreclosure and sale of the project and any other property mortgaged or assigned as security for the bonds; and
(4)	Rights to bring and maintain such other actions at law or in equity as may appear necessary or desirable to collect the amounts payable under, or to enforce the covenants made in, the security document.
It shall be lawful for any bank or trust company incorporated under the laws of this State which may act as depositary of the proceeds of bonds, revenues, or other funds provided under this Chapter to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority.  All expenses incurred in carrying out the provisions of such security document may be treated as a part of the cost of the project in connection with which bonds are issued or as an expense of administration of such project.
The Authority may subordinate the bonds or its rights under the financing agreement or otherwise to any prior, contemporaneous, or future securities or obligations or lien, mortgage, or other security interest.
"§ 159J-17.  County agreements.
(a)	Any county in which all or part of a cargo airport site is located may enter into an agreement with the Authority providing for payments to be made by such county to the Authority in respect of benefits accruing to the county from the location of the cargo airport site within the county.  The county's obligations under any such agreement shall not constitute a pledge of its faith and credit and payment therefor shall be made from sources of payment specified in such agreement, except pursuant to subsection (b) or (c).  Except as permitted pursuant to subsection (b) or (c), such sources of payment may not include any receipts from the exercise of the county's taxing power.
(b)	Payments made by a county to the Authority pursuant to agreements entered into under subsection (a) may be made from receipts of the exercise of the county's taxing power if the requirements of this subsection are met.
(b1)	Any county may covenant with the Authority for the payment of amounts due under agreements permitted by subsection (a) whereby such county agrees to:
(1)	Levy for the life of the agreement an annual property tax not in excess of the rate set forth in the question submitted to voters as hereinafter provided, such levy to be based upon the operating supplement requirement, as defined in this subsection, or
(2)	Levy for the life of the agreement in respect of which such tax is being levied an annual property tax not in excess of the rate required to pay the principal of and the interest on the aggregate principal amount of revenue bonds set forth in the question submitted to the voters as hereinafter provided, such levy to be based upon the debt service reserve supplement requirement, as defined in this subsection.
(b2)	When any such covenant has been made or any such agreement has been entered into, the county shall determine by not later than June 1 of each fiscal year the amount required, determined as hereinafter provided, to be raised by taxation by such county in the next fiscal year.  The county is obligated to levy such tax only to the extent that an operating supplement requirement or a debt service reserve supplement requirement shall occur during the fiscal year preceding the fiscal year in which the tax is to be levied.  In no event shall the county be required to levy a tax in excess of the rate required to be levied in accordance with the approval of the voters as provided in subsection (b3).  When any such tax is to be levied, the county shall include in its budget ordinance an appropriation equal to the estimated yield of the tax levy, and shall pay such appropriation to the Authority or transfer moneys to the appropriate fund in equal monthly installments unless another mutually satisfactory schedule of payments is agreed upon.
(b3)	A covenant made, or the pledge of an agreement entered into, by a county pursuant to this subsection shall be effected by the provisions of the agreement permitted pursuant to subsection (a).
A covenant made, or agreement entered into, by a county pursuant to this subsection shall take effect only if approved by the affirmative vote of a majority of those who vote thereon in a referendum held in the county.  The referendum shall be called and held as provided in G.S. 159-61, except that:
(1)	The ballot proposition shall be in substantially one of the following forms:
	Operating Supplement Requirement:
		'Shall the agreement binding the county to levy annually a tax on property not in excess of ............... cents on the one hundred dollars ($100.00) value of property subject to taxation for the purpose of supplementing the revenues of the Authority in instances where the gross revenues of an airport project are estimated to be less than the estimated total costs of the (i) current operating expenses of the project, (ii) amount required to maintain the debt service reserve by repaying any withdrawals therefrom in respect of all outstanding bonds issued in connection with the project and (iii) debt service on all outstanding bonds issued in connection with the project, all as defined in such agreement, the proceeds of such tax to be used for the payment of the current operating expenses of the project so long as any revenue bonds issued therefor remain outstanding and unpaid be approved?
[ ] Yes
[ ] No'
	Debt  Service Reserve Supplement Requirement:
		'Shall the agreement binding the county to levy annually, without limitation as to rate or amount, a tax on property subject to taxation for the purpose of supplementing the revenues of the Authority for maintaining the debt service reserve required by said agreement in connection with the issuance of not in excess of $.............. revenue bonds of the Authority to finance an airport project so long as any of such revenue bonds remain outstanding and unpaid, be approved?
[ ] Yes
[ ] No'
	and
(2)	The published statement of result shall have the following statement appended:
		' Any action or proceeding challenging the regularity or validity of this supplemental tax referendum must be begun within 30 days after (date of publication).
........................
(title of governing board.)'
(b4)	Any action or proceeding in any court to set aside a supplemental tax referendum held under this section, or to obtain any other relief upon the ground that the referendum is invalid or was irregularly conducted, must be begun within 30 days after the publication of the statement of the result of the referendum.  After the expiration of this period of limitation, no right of action or defense based upon the invalidity of or any irregularity in the referendum shall be asserted, nor shall the validity of the referendum be open to question in any court upon any ground whatever, except in an action or proceeding begun within the period of limitation prescribed in this subsection.
(b5)	An order or agreement submitted to an approved by the voters pursuant to this section may be repealed at any time before bonds are issued pursuant thereto.
(b6)	For the purposes of this section:
(1)	An 'operating supplement requirement' occurs when, as set forth in the budget prepared by the Authority, the estimated cost in the next succeeding fiscal year of the (i) current operating expenses of the relevant airport project, (ii) amount required to maintain the debt service reserve by repaying any withdrawals therefrom in respect of all outstanding bonds issued in connection with the relevant airport project, and (iii) debt service on all outstanding bonds issued in connection with the relevant airport project are in excess of the pledged revenues of the project for such fiscal year as estimated by the Authority, excluding taxes levied pursuant to this subsection; provided, however, that the amount of the operating supplement requirement shall not exceed the total amount of the current operating expenses of the project, and
(2)	A 'debt service reserve supplement requirement' occurs when there have been withdrawn from the debt service reserve any moneys for the purpose of paying debt service on the bonds in respect of which the supplemental tax has been authorized by the voters; provided, however, that the amount of the debt service reserve supplement requirement shall not exceed the amount so withdrawn.
(b7)	Any covenant or agreement of a county made pursuant to this section, and the obligations assumed thereby, shall be excludable from the gross debt of the county for purposes of the statement of debt mentioned in G.S. 159-55.
(c)	On or after the effective date of an amendment to the Constitution permitting the General Assembly to enact laws permitting counties to issue bonds secured by incremental increases in real property taxes within specifically designated taxing districts for certain types of projects, counties may utilize such obligations to secure or provide for the agreements described in subsection (a) using a cargo airport site or a portion thereof within the county as the development financing district pursuant to Article 6 of Chapter 159 of the General Statutes.
"§ 159J-18.  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 Authority 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 authority or by any officer thereof.
"§ 159J-19.  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 Chapter 25 of the General Statutes.
"§ 159J-20.  Officers not liable.
No member or officer of the Authority shall be subject to any personal liability or accountability by reason of his execution of any bonds or notes or the issuance thereof.
"§ 159J-21.  Conflicts of interest.
If any member, officer, or employee of the Authority 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 units of local government interested directed or indirectly, in any contract with the Authority, such interest shall be disclosed to the Authority and shall be set forth in the minutes of the Authority.  The member, officer, or employee having an interest therein shall not participate on behalf of the Authority 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 may not affect the validity of any bonds, notes, or loan agreements issued pursuant to the provisions of this Chapter.
"§ 159J-22.  Dissolution.
Whenever the Board of the Authority shall by resolution determine that the purposes for which the Authority was formed have been substantially fulfilled and that all bonds theretofore issued and all other obligations theretofore incurred by the Authority have been fully paid or satisfied, such Board may declare the Authority to be dissolved.  On the effective date of such resolution, the title to all funds and other property owned by the Authority at the time of such dissolution shall vest in the State and possession of such funds and other property shall forthwith be delivered to the State.
"§ 159J-23.  Conflicting laws.
Insofar as the provisions of this Chapter are inconsistent with the provisions of any general, special, or local laws, or parts thereof, the provisions of this Chapter shall be controlling.
"§ 159J-24.  Airport zoning authority approval required.
Notwithstanding the provisions of G.S. 63-31, no airport zoning provisions or restrictions may be adopted by any other political subdivision or State agency affecting real property within two miles of any cargo airport site without the approval of the Authority.
"§ 159J-25.  Liberal construction.
It is intended that the provisions of this act shall be liberally construed to accomplish the purposes provided for, or intended to be provided for, herein, and where strict construction would result in the defeat of the accomplishment of any of the acts authorized herein, and a liberal construction would permit or assist in the accomplishment thereof, the liberal construction shall be chosen.
"§ 159J-26.  Severability.
The provisions of this act are severable, and if any provision of this act is held invalid by a court of competent jurisdiction, the invalidity shall not affect other provisions of the act which can be given effect without the invalid provision."
Sec. 2.  G.S.120-123 is amended by adding a new subdivision to read:
"(25a)	The North Carolina Air Cargo Authority as established under G.S.159J-4."
Sec. 3.  This act is effective upon ratification.