GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 928
Appropriations Committee Substitute Adopted 7/9/92

Short Title:  Education Bond Act. 	(Public)
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Sponsors:
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Referred to:  
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May 13, 1991

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE ISSUANCE OF THREE HUNDRED NINETY-EIGHT MILLION DOLLARS GENERAL OBLIGATION BONDS OF THE STATE, SUBJECT TO A VOTE OF THE QUALIFIED VOTERS OF THE STATE, TO PROVIDE FUNDS, WITH ANY OTHER AVAILABLE FUNDS, FOR CAPITAL IMPROVEMENTS FOR CERTAIN OF THE CONSTITUENT OR AFFILIATED INSTITUTIONS OF THE UNIVERSITY OF NORTH CAROLINA AND FOR CAPITAL IMPROVEMENTS FOR COMMUNITY COLLEGES.
The General Assembly of North Carolina enacts:
Section 1.  Short title.  This act shall be known and may be cited as the "Education Bond Act."
Sec. 2.  Findings and determinations.  It is the intent and purpose of the General Assembly by this act to provide for the issuance of general obligation bonds of the State in order to:
(1)	Facilitate the providing of capital improvements for certain of the constituent or affiliated institutions of The University of North Carolina; and
(2)	Make grants to particular community colleges for specified capital improvements as provided in this act.
Sec. 3.  Definitions.  As used in this act, unless the context otherwise requires:
(1)	" Bonds”means bonds issued under this act.
(2)	" Cost”means, without intending thereby to limit or restrict any proper definition of such word in financing the cost of facilities or purposes authorized by this act:
a.	The cost of constructing, reconstructing, enlarging, acquiring, and improving facilities, and acquiring equipment and land therefor,
b.	The cost of engineering, architectural, and other consulting services as may be required,
c.	Administrative expenses and charges,
d.	The cost of bond insurance, investment contracts, credit enhancement and liquidity facilities, interest-rate swap agreements, financial and legal consultants, and related costs of bond and note issuance, to the extent and as determined by the State Treasurer, and 
e.	Any other costs and expenses necessary or incidental to the purposes of this act.
	Allocations in this act of proceeds of bonds to the costs of a project or undertaking in each case may include allocations to pay the costs set forth in items c., d., and e. in connection with the issuance of bonds for such project or undertaking.
(3)	" Credit facility”means an agreement entered into by the State Treasurer on behalf of the State 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 or other similar provider of a credit facility, which provider may be located within or without the United States of America, such agreement 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 State agreeing to repay the provider of the credit facility in accordance with the terms and provisions of such agreement.
(4)	" Notes”means notes issued under this act.
(5)	" Par formula”means any provision or formula adopted by the State 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 State Treasurer may determine to be consistent with this act and will not materially and adversely affect the financial position of the State and the marketing of bonds or notes at a reasonable interest cost to the State.
Sec. 4.  Authorization of bonds and notes. (a)	University Improvement Bonds.  Subject to a favorable vote of a majority of the qualified voters of the State who vote on the question of issuing University Improvement bonds in the election called and held as provided in this act, the State Treasurer is authorized, by and with the consent of the Council of State, to issue and sell, at one time or from time to time, general obligation bonds of the State to be designated "State of North Carolina University Improvement Bonds,”with any additional designations as may be determined to indicate the issuance of bonds from time to time, or notes of the State as provided in this act, in an aggregate principal amount not exceeding two hundred seventy-one million dollars ($271,000,000) for the purposes authorized in this act.
(b)	Community College Bonds.  Subject to a favorable vote of a majority of the qualified voters of the State who vote on the question of issuing Community College bonds in the election called and held as provided in this act, the State Treasurer is authorized, by and with the consent of the Council of State, to issue and sell, at one time or from time to time, general obligation bonds of the State to be designated "State of North Carolina Community College Bonds,”with any additional designations as may be determined to indicate the issuance of bonds from time to time, or notes of the State as provided in this act, in an aggregate principal amount not exceeding one hundred twenty-seven million dollars ($127,000,000) for the purposes authorized in this act.
Sec. 5.  Uses of bond and note proceeds. (a)	University Improvement Bonds.  The proceeds of University Improvement bonds and notes shall be used for the purpose of paying (i) the cost of improvements to the facilities of the constituent or affiliated institutions of The University of North Carolina, under the supervision of the Board of Governors of The University of North Carolina, including, without limitation, construction and renovation of classroom buildings, laboratory buildings, research facilities, libraries, physical education facilities, continuing education centers, student cafeteria and activity facilities, including sports facilities, administrative office buildings, and land acquisition and (ii) the cost of improvements to the North Carolina Center for Public Television under the Board of Governors of The University of North Carolina.
Any additional moneys that may be received by means of a grant or grants from the United States of America or any agency or department thereof or from any other source to aid in financing the cost of any university improvements authorized by this act may be placed by the State Treasurer in the University Improvement Bonds Fund or in a separate account or fund and shall be disbursed, to the extent permitted by the terms of the grant or grants, without regard to any limitations imposed by this act.
The proceeds of University Improvement bonds and notes may be used with any other moneys made available by the General Assembly for the making of university improvements, including the proceeds of any other State bond issues, whether heretofore made available or which may be made available at the session of the General Assembly at which this act is ratified or any subsequent sessions.  The proceeds of University Improvement bonds and notes shall be expended and disbursed under the direction and supervision of the Director of the Budget.  The funds provided by this act for university improvements shall be disbursed for the purposes provided in this act upon warrants drawn on the State Treasurer by the State Controller, which warrants shall not be drawn until requisition has been approved by the Director of the Budget and which requisition shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.
The Board of Governors of The University of North Carolina shall provide quarterly reports to the Joint Legislative Commission on Governmental Operations, the chairs of the Senate and House of Representatives Appropriations Committees, and the Fiscal Research Division on the expenditure of moneys from the University Improvement Bonds Fund.
(b)	Community College Bonds.  The proceeds of community college bonds and notes shall be used for the purpose of making grants to community or technical colleges, as defined in Chapter 115D of the General Statutes, the proceeds of the grants to be allocated and expended for paying the cost of community college capital improvements, including, without limitation, construction and renovation of classroom buildings, laboratory buildings, research facilities, libraries, physical education facilities, continuing education centers, student cafeteria and activity facilities including sports facilities, administrative office buildings, and land acquisition.
The proceeds of Community College bonds and notes, including premium thereon, if any, except the proceeds of bonds the issuance of which has been anticipated by bond anticipation notes or the proceeds of refunding bonds or notes, shall be placed by the State Treasurer in a special fund to be designated "Community College Bonds Fund”and shall be disbursed as provided in this act.
Any additional moneys which may be received by means of a grant or grants from the United States of America or any agency or department thereof or from any other source to aid in financing the cost of any community college grants authorized by this act may be placed by the State Treasurer in the Community College Bonds Fund or in a separate account or fund and shall be disbursed, to the extent permitted by the terms of the grant or grants, without regard to any limitations imposed by this act.
The proceeds of Community College bonds and notes may be used with any other moneys made available by the General Assembly for the making of community college grants, including the proceeds of any other State bond issues, whether heretofore made available or which may be made available at the session of the General Assembly at which this act is ratified or any subsequent sessions.  The proceeds of community college bonds and notes shall be expended and disbursed under the direction and supervision of the Director of the Budget.  The funds provided by this act for community college improvements shall be disbursed for the purposes provided in this act upon warrants drawn on the State Treasurer by the State Controller, which warrants shall not be drawn until requisition has been approved by the Director of the Budget and which requisition shall be approved only after full compliance with the Executive Budget Act, Article 1 of Chapter 143 of the General Statutes.
The State Board of Community Colleges shall provide quarterly reports to the Joint Legislative Commission on Governmental Operations, the chairs of the Senate and House of Representatives Appropriations Committees, and the Fiscal Research Division on the expenditure of moneys from the Community Colleges Bonds Fund.
Sec. 6.  Allocation of proceeds. (a)	University Improvement Bonds.  The proceeds of university improvement bonds and notes, including premium thereon, if any, except the proceeds of bonds the issuance of which has been anticipated by bond anticipation notes or the proceeds of refunding bonds or notes, shall be placed by the State Treasurer in a special Fund to be designated "University Improvement Bonds Fund.” Moneys in the University Improvement Bonds Fund shall be used for the purposes set forth in this act.  The proceeds of university improvement bonds and notes shall be allocated and expended for paying the cost of university capital improvements, to the extent and as provided in this act and subject to change as provided in this act, as follows:

	Constituent
	Institution or Board	Projected
	of Governors	Capital Improvement	Allocation
Appalachian State University	Academic Support Services
  Building	$  8,506,500
Renovation-Academic Bldgs	3,883,055
East Carolina University	Addition to Joyner Library	25,963,900
Land Acquisition	5,000,000
Elizabeth City State
  University	Fine Arts and Mass
  Communications Building	6,536,200
Fayetteville State
  University	Indoor Health, Physical Education,
  Intramural Facility	8,677,800
North Carolina A & T State
  University	School of Technology Classroom/
  Laboratory Building	7,702,100
Renovation of Bluford Library
  Building	4,621,200
North Carolina Central
  University	Chidley Hall Complex	8,799,400
Conversion of Women's
  Gymnasium in Support
  of Academic Programs	1,841,600
North Carolina School of
  the Arts	Film School	5,000,000
North Carolina State University
  at Raleigh	Engineering Graduate Research
  Center	32,464,000
Hazardous Waste Facility
and Waste Site Study	3,322,300
Agricultural Programs - Laboratory
  Animal Facilities	3,509,600
Pembroke State University	New Administrative Office
  Building	5,832,800
The University of North Carolina
at Asheville	Physical Education Building
  (Health Promotion)	5,186,000
Ramsey Library Renovation	3,311,700
The University of North Carolina
  at Chapel Hill	New Building, School of
  Social Work	9,759,700
New Building, School of
  Business Administration	14,852,900
Addition to Lineberger Cancer
Research Center	7,547,300
Carolina Living and Learning
  Center	1,120,700
Area Health Education
  Centers - Construction
  Grants	2,000,000
Addition to the School of
  Dentistry	8,676,600
The University of North Carolina
at Charlotte	Classroom and Academic
  Support Facility	22,136,800
The University of North Carolina
at Greensboro	New Music Building	21,868,700
The University of North Carolina
at Wilmington	Physical Sciences Building and
Renovation of DeLoach Hall	16,861,800
Western Carolina University	Completion of Belk Building
  and Asbestos Removal	3,248,600
Renovate Camp Lab School	3,879,100
Renovate Moore Hall	1,360,300
Winston-Salem State
University	Student Services/Cafeteria/
  Student Union Complex	5,959,100
Renovation-O'Kelly Library	993,900
UNC Center for Public
Television	Improvements to Facilities	5,100,000

The Board of Governors	Repairs/Renovations - Various
Constituent Institutions	431,454

North Carolina School of
Science and Mathematics	Educational Technologies
  Center and Auditorium	5,044,891
          TOTAL	$271,000,000.

The particular capital improvements and the amount of the allocation for the improvements set out above may be changed from time to time as the General Assembly may decide.
No University Improvement bonds or notes shall be issued and no proceeds of University Improvement bonds and notes shall be allocated for the purposes provided in this act, however, until the General Assembly authorizes issuance of some or all of University Improvements bonds and notes and appropriates the proceeds of the bonds and notes for specific projects within these purposes by legislative action at the 1992 session or any subsequent session.  Nothing in this act or as a result of the approval of the bonds at the election provided for in this act restricts the right of the General Assembly at the 1992 session or at a subsequent session to:
(1)	Establish a procedure whereby projected allocations set forth in subsequent legislation may be increased or decreased to reflect the availability of other funds, including, without limitation, contingency funds, income earned on the investment of bond and notes proceeds, and the proceeds of grants.
(2)	Establish a contingency account and provide for an allocation of bond proceeds thereto.  The funds in the contingency account may be used to pay the cost of projects, the costs of issuance of bonds and notes, and increased project costs resulting from construction costs exceeding projections, inflationary factors and changes in projects and allocations.  The funds allocated to the contingency account shall be placed by the State Treasurer in a separate account in the University Improvement Bonds Fund and shall be disbursed in accordance with the procedures herein established for disbursements from the University Improvement Bonds Fund.
(3)	Empower the Director of the Budget, when the Director of the Budget determines it is in the best interest of the State and The University of North Carolina to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project itemized by the General Assembly, or to increase the amount allocated to a particular institution or the Board of Governors within the aggregate amount of funds available under this section; the Director of the Budget having the right to consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations.
(4)	Provide that the provisions of G.S. 116-9 with respect to appropriations to the Board of Governors of The University of North Carolina shall not apply to proceeds of University Improvement bonds and notes issued pursuant to the provisions of this act.
Allocations to the costs of a capital improvement or undertaking in each case may include allocations to pay the costs set forth in Section 3(4) c., d., and e. of this act in connection with the issuance of bonds for that capital improvement or undertaking.
(b)	Community College Bonds.  Moneys in the Community College Bonds Fund shall be used for the purposes provided in this act.  The proceeds of Community College bonds and notes shall be used for making grants to community or technical colleges, as set forth in this act, the proceeds of the grants to be allocated and expended for paying the cost of community college capital improvements, to the extent and as provided in this act and subject to change as provided in this act, as follows:
	PROJECTED
COLLEGE	CAPITAL IMPROVEMENT	ALLOCATION
Alamance CC	Science Labs, Classrooms,
  Indiv. Trg.	2,300,000
Anson CC	Science Lab/Class Building	1,500,024
Asheville-Buncombe TCC	LRC Expansion	2,300,000
Beaufort County CC	Student Services Center	2,300,000
Bladen CC	Allied Health Building	480,000
Blue Ridge CC	Allied Health Building	2,300,000
Tech. & Voc. Trade Bldg - 
Transylvania County	2,002,226
Brunswick CC	Recreational Grounds Mgmt.	800,000
Caldwell CC & TI	Classrooms/Laboratories	2,300,000
Classroom/Lab - Watauga Co.	2,265,000
Cape Fear CC	Health Sciences Building	2,300,000
Classroom Building - Pender Co.	690,213
Carteret CC	Student Center/Classroom	1,900,000
Catawba Valley CC	Classroom/Lab Building	2,300,000
Central Carolina CC	Classroom/Lab Building	2,000,000
Central Piedmont CC	Law Enforcement Center	2,300,000
Cleveland CC	Adv. Technology Ctr/
  Continuing Ed.	2,208,022
Coastal Carolina CC	Public Service Tech. Building	2,300,000
College of The
  Albemarle	Classroom Building	2,300,000
Classroom Building - Dare Co.	1,500,000
Craven CC	ACAD Studies/Basic Skills	2,300,000
Davidson County CC	Advanced Technology Building	2,300,000
Classroom/Lab - Davie Co.	2,000,000
Durham TCC	Northern Durham Center/
  New Construction	2,300,000
Edgecombe CC	Rocky Mount Campus/New Building	1,850,000
Fayetteville TCC	Literacy & Cont. Educ. Building	2,300,000
Forsyth TCC	FTCC Northeast Campus	2,300,000
Gaston College	Business/Classroom Building	2,300,000
Guilford TCC	Advanced Technology Center	2,300,000
Halifax CC	Classroom Building	1,877,145
Haywood CC	Student Center Completion	584,517
Isothermal CC	Continuing Ed./Comm. Center	2,300,000
James Sprunt CC	Library/Continuing Ed.	1,800,000
Johnston CC	Classrooms & Health Occup.
  Building	2,300,000
Lenoir CC	Renovations & Repairs	2,300,000
Instruction Facility/Greene Co.	1,500,000
Vocational Annex/Jones Co.	100,000
Martin CC	Equine Arena	576,997
New Construction - Bertie Co.	250,000
Mayland CC	Student Lecture Hall/
  Classroom Shop Bldg.	2,300,000
McDowell TCC	Bookstore, Amphitheatre, &
  Mezzanine	283,988
Mitchell CC	Main Building-Renovation	2,200,000
Montgomery CC	LRC Building	2,300,000
Nash CC	LRC/Student Center/
  Parking/Renov.	2,300,000
Pamlico CC	Classroom Multipurpose/Renov.	1,175,348
Piedmont CC	Renovate Buildings E & F	100,000
Learning Center - Caswell Co.	1,500,000
Pitt CC	Student Services	2,300,000
Randolph CC	Photographic Studio	1,017,500
Richmond CC	Fine Arts Ctr/Auditorium	2,188,773
Roanoke-Chowan CC	Learning Resource/Student
  Activity	1,799,088
Robeson CC	Emergency Training Grounds	702,000
Rockingham CC	Multipurpose Classroom	2,300,000
Rowan-Cabarrus CC	Technology Building	2,300,000
Classroom Building/Cabarrus Co.	1,085,000
Sampson CC	Multipurpose Building	2,300,000
Sandhills CC	Continuing Ed. Center/
  Classrooms	2,300,000
Southeastern CC	New Construction	2,300,000
Southwestern CC	Classroom Renovations	470,000
Attendance Center/Swain Co.	600,000
Parking Lot/Driving - Macon Co.	150,000
Stanly CC	Learning Resource Center	2,140,209
Classroom/Office Bldg-Union Co.	770,023
Surry CC	Health - Library Building	2,300,000
Tri-County CC	Student Services Center	1,124,851
Vance-Granville CC	Allied Health Building	1,877,007
New Construction/Franklin Co.	1,547,780
Add Classrooms - Granville Co.	454,289
Renovate Classrooms - Warren Co.	330,000
Wake TCC	Student Education Building	2,300,000
Wayne CC	Classroom & Lab Building	2,300,000
Western Piedmont CC	Business Tech. Building	2,300,000
Wilkes CC	Library-Student Services	2,300,000
Classrooms - Ashe Co.	200,000
Wilson TCC	LRC/Auditorium Expansion	   1,200,000
          TOTAL	$127,000,000
The particular capital improvements and the amount of the allocation for the improvements set out above may be changed from time to time as the General Assembly may decide.
No Community College bonds or notes shall be issued and no proceeds of Community College bonds and notes shall be allocated for the purposes provided in this act, however, until the General Assembly authorizes issuance of some or all Community College bonds and notes and appropriates the proceeds of the bonds and notes for specific projects within these purposes by legislative action at the 1992 session or any subsequent session.  Nothing in this act or as a result of the approval of the bonds at the election provided for in this act restricts the right of the General Assembly at the 1992 session or at a subsequent session to:
(1)	Establish a procedure whereby projected allocations set forth in subsequent legislation may be increased or decreased to reflect the availability of other funds, including, without limitation, contingency funds, income earned on the investment of bond and notes proceeds and the proceeds of grants.
(2)	Establish a contingency account and provide for an allocation of bond proceeds thereto.  The funds in the contingency account may be used to pay the cost of projects, the costs of issuance of bonds and notes, and increased project costs resulting from construction costs exceeding projections, inflationary factors and changes in projects and allocations.  The funds allocated to the contingency account shall be placed by the State Treasurer in a separate account in the Community College Bonds Fund and shall be disbursed in accordance with the procedures herein established for disbursements from the Community College Bonds Fund.
(3)	Empower the State Board of Community Colleges, when the State Board of Community Colleges determines it is in the best interest of the State and the community college system to do so, and if the cost of a particular project is less than the projected allocation, to use the excess funds to increase the size of that project or increase the size of any other project described by the General Assembly, or to increase the amount allocated to a particular institution within the aggregate amount of funds available under this section.  To the extent that funds are not required to be expended for the specific projects prescribed by the General Assembly, the General Assembly may provide that allocations authorized by it may be used for capital outlay projects at any community college or colleges, including community colleges not described by the General Assembly as replacement projects, but none of the funds may be used for operating expenditures.
Sec. 7.  Election.  The questions of the issuance of the two hundred seventy-one million dollars ($271,000,000) North Carolina University Improvement bonds and the issuance of the one hundred twenty-seven million dollars ($127,000,000) North Carolina Community College Bonds authorized by this act shall be submitted to the qualified voters of the State at an election to be held on a date to be fixed by the Governor by proclamation, but in any event not later than November 3, 1992.  Any other primary, election, or referendum validly called or scheduled by law at the time the election on the bond questions provided for in this section is held may be held as called or scheduled.  Notice of the election on the bond questions shall be given by publication twice in a newspaper or newspapers having general circulation in each county in the State, and the election and the registration of voters therefor shall be held under and in accordance with the general laws of the State.  Absentee ballots shall be authorized in the election.
The State Board of Elections shall reimburse the counties of the State for all necessary expenses incurred in holding the election which are in addition to those which would have otherwise been incurred, the same to be paid out of the Contingency and Emergency Fund or other funds available to the State Board of Elections.
Voting machines may be used in accordance with rules prescribed by the State Board of Elections.  The State Board of Elections may also provide, to the extent necessary, ballots for use in the election.  The bond questions to be used in the voting machines and any ballots shall be in substantially the following forms:
"[]	FOR the issuance of two hundred seventy-one million dollars ($271,000,000) State of North Carolina University Improvement Bonds secured by a pledge of the faith and credit and taxing power of the State for paying, with any other available funds, the cost of capital improvements at the constituent or affiliated institutions and the Center for Public Television of The University of North Carolina.
[]	AGAINST the issuance of two hundred seventy-one million dollars ($271,000,000) State of North Carolina University Improvement Bonds secured by a pledge of the faith and credit and taxing power of the State for paying, with any other available funds, the cost of capital improvements at the constituent or affiliated institutions and the Center for Public Television of The University of North Carolina.
[]	FOR the issuance of one hundred twenty-seven million dollars ($127,000,000) State of North Carolina Community College Bonds secured by a pledge of the faith and credit and taxing power of the State for making grants to community and technical colleges to pay, together with other available funds, the cost of capital improvements.
[]	AGAINST the issuance of one hundred twenty-seven million dollars ($127,000,000) State of North Carolina Community College Bonds secured by a pledge of the faith and credit and taxing power of the State for making grants to community and technical colleges to pay, together with other available funds, the cost of capital improvements."
If a majority of those voting on a bond question in the election vote in favor of the issuance of the bonds described in the question, those bonds may be issued as provided in this act.  If a majority of those voting on a bond question in the election vote against the issuance of the bonds described in the question, those bonds shall not be issued.
The results of the election shall be canvassed and declared as provided by law for elections for State officers; the results of the election shall be certified by the State Board of Elections to the Secretary of State, in the manner and at the time provided by the general election laws of the State.
Sec. 8.  Issuance of bonds and notes.  (a)	Terms and conditions.  Bonds or notes may bear such date or dates, may be serial or term bonds or notes, or any combination thereof, may mature in such amounts and at such time or times, not exceeding 40 years from their date or dates, may be payable at such place or places, either within or without the United States of America, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, may bear interest at such rate or rates, which may vary from time to time, and may be made redeemable before maturity, at the option of the State or otherwise as may be provided by the State, at such price or prices, including a price less than the face amount of the bonds or notes, and under such terms and conditions, all as may be determined by the State Treasurer, by and with the consent of the Council of State.
(b)	Signatures; form and denomination; registration.  Bonds or notes may be issued as certificated or uncertificated obligations.  If issued as certificated obligations, bonds or notes shall be signed on behalf of the State by the Governor or shall bear his facsimile signature, shall be signed by the State Treasurer or shall bear his facsimile signature, and shall bear the Great Seal of the State or a facsimile thereof shall be impressed or imprinted thereon.  If bonds or notes bear the facsimile signatures of the Governor and the State Treasurer, the bonds or notes shall also bear a manual signature which may be that of a bond registrar, trustee, paying agent, or designated assistant of the State Treasurer.  Should any officer whose signature or facsimile signature appears on bonds or notes cease to be such officer before the delivery of the bonds or notes, the signature or facsimile signature shall nevertheless have the same validity for all purposes as if the officer had remained in office until delivery and bonds or notes may bear the facsimile signatures of persons who at the actual time of the execution of the bonds or notes shall be the proper officers to sign any bond or note although at the date of the bond or note such persons may not have been such officers.  The form and denomination of bonds or notes, including the provisions with respect to registration of the bonds or notes and any system for their registration, shall be as the State Treasurer may determine in conformity with this act; provided, however, that nothing in this act shall prohibit the State Treasurer from proceeding, with respect to the issuance and form of the bonds or notes, under the provisions of Chapter 159E of the General Statutes, the Registered Public Obligations Act, as well as under this act.
(c)	Manner of sale; expenses.  Subject to determination by the Council of State as to the manner in which bonds or notes shall be offered for sale, whether at public or private sale, whether within or without the United States of America and whether by publishing notices in certain newspapers and financial journals, mailing notices, inviting bids by correspondence, negotiating contracts of purchase or otherwise, the State Treasurer is authorized to sell bonds or notes at one time or from time to time at such rate or rates of interest, which may vary from time to time, and at such price or prices, including a price less than the face amount of the bonds or the notes, as the State Treasurer may determine.  All expenses incurred in preparation, sale and issuance of bonds or notes shall be paid by the State Treasurer from the proceeds of bonds or notes or other available moneys.
(d)	Notes; repayment.
(1)	By and with the consent of the Council of State, the State Treasurer is hereby authorized to borrow money and to execute and issue notes of the State for the same, but only in the following circumstances and under the following conditions:
a.	For anticipating the sale of bonds to the issuance of which the Council of State shall have given consent, if the State Treasurer shall deem it advisable to postpone the issuance of the bonds;
b.	For the payment of interest on or any installment of principal of any bonds then outstanding, if there shall not be sufficient funds in the State treasury with which to pay the interest or installment of principal as they respectively become due;
c.	For the renewal of any loan evidenced by notes herein authorized;
d.	For the purposes authorized in this act; and
e.	For refunding bonds or notes as herein authorized.
(2)	Funds derived from the sale of bonds or notes may be used in the payment of any bond anticipation notes issued under this act.  Funds provided by the General Assembly for the payment of interest on or principal of bonds shall be used in paying the interest on or principal of any notes and any renewals thereof, the proceeds of which shall have been used in paying interest on or principal of the bonds.
(e)  Refunding bonds and notes.  By and with the consent of the Council of State, the State Treasurer is authorized to issue and sell refunding bonds and notes pursuant to the provisions of the State Refunding Bond Act for the purpose of refunding bonds or notes issued pursuant to this act.  The refunding bonds and notes may be combined with any other issues of State bonds and notes similarly secured.
(f)  Tax exemption.  Bonds and notes 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.  The interest on bonds and notes shall not be subject to taxation as to income, nor shall the bonds and notes be subject to taxation when constituting a part of the surplus of any bank, trust company, or other corporation.
(g)  Investment eligibility.  Bonds and notes are hereby made securities in which all public officers, agencies, and public bodies of the State and its political subdivisions, all insurance companies, trust companies, investment companies, banks, savings banks, savings 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.  Bonds and 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.
(h)  Faith and credit.  The faith and credit and taxing power of the State are hereby pledged for the payment of the principal of and the interest on bonds and notes.
Sec. 9.  Variable interest rates.  In fixing the details of bonds and notes, the State Treasurer 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 the bonds or notes, unless the State Treasurer specifically determines that a credit facility is not required upon a finding and determination by the State Treasurer that the absence of a credit facility will not materially or adversely affect the financial position of the State and the marketing of the bonds or notes at a reasonable interest cost to the State;
(2)	Be additionally supported by a credit facility;
(3)	Be made subject to redemption or a mandatory tender for purchase prior to maturity;
(4)	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 the bonds or notes, including, without limitation, such variations as may be permitted pursuant to a par formula; and
(5)	Be made the subject of a remarketing agreement whereby an attempt is made to remarket bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the State.
If the aggregate principal amount repayable by the State under a credit facility is in excess of the aggregate principal amount of bonds or notes secured by the credit facility, whether as a result of the inclusion in the credit facility of a provision for the payment of interest for a limited period of time or the payment of a redemption premium or for any other reason, then the amount of authorized but unissued bonds or notes during the term of such credit facility shall not be less than the amount of such excess, unless the payment of such excess is otherwise provided for by agreement of the State executed by the State Treasurer.
Sec. 10.  Interpretation of act.  (a)	Additional method.  The foregoing sections of this act 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.
(b)	Statutory references.  References in this act to specific sections or chapters of the General Statutes or to specific acts are intended to be references to these sections, chapters, or acts as they may be amended from time to time by the General Assembly.
(c)	Liberal construction.  This act, being necessary for the health and welfare of the people of the State, shall be liberally construed to effect the purposes thereof.
(d)	Inconsistent provisions.  Insofar as the provisions of this act are inconsistent with the provisions of any general laws, or parts thereof, the provisions of this act shall be controlling.
(e)  Severability.  If any provision 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 the 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. 11.  Effective date.  This act is effective upon ratification.