GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 1255
Finance Committee Substitute Adopted 6/23/92

Short Title:  Validate Local Bond Proceedings.	(Public)
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Sponsors:
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Referred to:  
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June 17, 1992

A BILL TO BE ENTITLED
AN ACT TO RATIFY, APPROVE, CONFIRM, AND VALIDATE ALL PROCEEDINGS TAKEN IN 1991 BY THE GOVERNING BOARD OF ANY UNIT OF LOCAL GOVERNMENT IN CONNECTION WITH THE EXTENSION OF THE PERIOD DURING WHICH BONDS MAY BE ISSUED AND TO ALLOW THE REFUNDING OF MULTIFAMILY HOUSING BONDS ISSUED BY LOCAL GOVERNMENTS AND NONPROFIT ORGANIZATIONS.
The General Assembly of North Carolina enacts:
Section 1.  All proceedings taken in 1991 by the governing board of any unit of local government in connection with the extension of the period during which bonds may be issued pursuant to G.S. 159-64 are ratified, approved, confirmed, and in all respects validated if the governing board has adopted an order providing for the extension after a public hearing on the extension before the expiration of the period to be extended.
Sec. 2.  G.S. 122A-5 is amended by adding a new subdivision to read:
"(24)	To acquire from other public instrumentalities, including instrumentalities created pursuant to G.S. 157-4, and nonprofit corporations, existing mortgage loans insured or guaranteed by the United States of America or an instrumentality thereof if the existing mortgage loans were made to finance residential housing in the State and if the Agency determines (i) that the Agency is able to borrow money to finance such acquisition at interest rates lower than the interest rate on the mortgage loans to be acquired, (ii) the Agency will be able to employ all or a portion of the savings resulting therefrom to provide opportunities for safe and sanitary housing for persons of lower income in the State and (iii) the acquisition cost will be applied to retire indebtedness incurred by such other public instrumentality or nonprofit corporation to finance the existing mortgage loan."
Sec. 3.  This act is effective upon ratification.