NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 633

SENATE BILL 498

 

 

AN ACT AUTHORIZING THE CREATION IN COUNTIES OF POLLUTION ABATEMENT AND INDUSTRIAL FACILITIES FINANCING AUTHORITIES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  The General Statutes of North Carolina are hereby amended by inserting therein a new chapter to be designated Chapter 159A and to read as follows:

"Chapter 159A.

"Pollution Abatement and Industrial Facilities Financing Act.

"§ 159 A-l.  Short Title. — This Chapter may be referred to as the 'North Carolina Pollution Abatement and Industrial Facilities Financing Act.'

"§ 159A-2.  Legislative Findings and Purposes. — (a) The General Assembly finds and determines that the development and expansion of commerce and industry within the State, which are essential to the economic growth of the State and to the full employment and prosperity of its citizens are accompanied by the increased use of processes and facilities and the increased production and discharge of noise, and gaseous, liquid, and solid wastes which threaten and endanger the health, welfare and safety of the citizens of the State by polluting the air, land and waters of the State; that in order to reduce, control and prevent such environmental pollution, it is imperative that action be taken at various levels of government to require acquisition and installation of devices, equipment and facilities for the collection, reduction, treatment, and disposal of such wastes and pollutants and that such actions heretofore or hereafter taken be effectively coordinated; that the assistance provided in this act, especially with respect to financing, is therefore in the public interest and serves a public purpose of the State in promoting the health, welfare and safety of the citizens of the State that not only physically by reducing, controlling and preventing environmental pollution but also economically by the securing and retaining of private enterprises and the resulting maintenance of higher level of employment and economic activity and stability.

(b)        The General Assembly further finds and determines that certain areas of the State have not shared in the general economic prosperity and development which is being experienced by the State; that the significant gap which exists between those areas and the other areas of the State will become wider as employment opportunities in agriculture decline with the introduction of mechanized farming methods; that there exists in those areas a critical condition of unemployment and absence of employment opportunities which may well exist from time to time in other areas of the State; that the economic insecurity which results from such unemployment and absence of employment opportunities constitutes a serious menace to the safety, morals and general welfare of the people of not only the directly affected areas but also of the people of the entire State; that such unemployment and absence of employment opportunities have caused many workers and their families, including the youth upon which any future economic prosperity is dependent, to migrate elsewhere to find employment and establish homes; that such migration has resulted in a reduction in the tax base of the counties and other local governmental units in such areas which impairs the financial ability of such counties and other local governmental units to support education and other local governmental services; that such unemployment results in obligations to grant public assistance and in the payment of unemployment compensation; that the aforesaid conditions can best be remedied by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing in such areas; and that there is a need to stimulate a larger flow of private investment funds from banks, investment concerns, insurance companies and other financial institutions into industrial building programs in such areas. It is therefore declared to be the policy of the State to promote the safety, morals, right to gainful employment, business opportunities, the conservation of the air and waters of the State, the achievement and maintenance of a total environment of superior quality, and general welfare of the inhabitants thereof by providing for the creation of county authorities which shall exist and operate as political subdivisions and bodies corporate and politic of the State for the purposes of (1) pollution control financing in the counties in all areas of the State for the public purpose of preventing, controlling and eliminating all types of pollution and/or, (2) industrial facilities financing in the counties for the public purpose of alleviating unemployment, below average manufacturing wages, and below average per capita income by maintaining employment at a high level and by creating, attracting and developing industrial facilities which provide job opportunities, higher skills and better wages than those prevalent in the area.

"§ 159A-3.  Definitions. — The following terms, whenever used or referred to in this Chapter, shall have the following respective meanings, unless a different meaning clearly appears from the context:

(1)        'Agency' shall include any agency, bureau, commission, department or instrumentality.

(2)        'Air pollution control facility' shall mean any structure, equipment or other facility for, including any increment in the cost of any structure, equipment or facility attributable to, the purpose of treating, neutralizing or reducing gaseous industrial waste and other air pollutants, including recovery, treatment, neutralizing or stabilizing plants and equipment and their appurtenances.

(3)        'Authority' shall mean a political subdivision and body corporate and politic organized in accordance with the provisions of this Chapter.

(4)        'Bonds' shall mean revenue bonds of an Authority issued under the provisions of this Chapter and shall include refunding bonds.

(5)        'Cost' as applied to any project shall embrace the cost of construction, the cost of acquisition of all property, including rights in land and other property, both real and personal and improved and unimproved, the cost of demolishing, removing or relocating any buildings or structures on lands so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved or relocated, the cost of all machinery and equipment, start-up expenses, financing charges, interest prior to and during construction and for a period not exceeding one year after completion of construction, the cost of engineering and architectural surveys, plans and specifications, the cost of consultants' and legal services, other expenses necessary or incident to determining the feasibility or practicability of constructing such project, administrative and other expenses necessary or incident to the acquisition or construction of such project and the financing of the acquisition and construction thereof, including reimbursement to any lessee of such project for such expenditures, made with the prior approval of the Authority, as would be costs of the project hereunder had they been made directly by the Authority.

(6)        'County' shall mean any county of this State now or hereafter existing.

(7)        'Governing body' shall mean the board, commission, council or other body in which the general legislative powers of any county or other political subdivision are vested.

(8)        'Industrial waste' shall mean any liquid, gaseous or solid waste substance resulting from any process of industry, manufacture, trade or business, or from the development, processing or recovery of any natural resource which pollutes the water or air of or adjacent to the State of North Carolina.

(9)        'Noise abatement facility' shall mean any facility or equipment for the purpose of reducing, preventing or eliminating noise pollution.

(10)      'Pollution' shall mean the placing of any noxious or deleterious substances (including noise) in any air or water of or adjacent to the State of North Carolina or affecting the physical, chemical or biological properties of any air or waters of or adjacent to the State of North Carolina in a manner and to an extent which renders or is likely to render such air or waters harmful or inimical to the public health, safety or welfare, or to animal, bird or aquatic life, or to the use of such air or waters for domestic, industrial or agricultural purposes or recreation.

(11)      'Political subdivision' shall mean any county, city, town, incorporated village, school district, sanitary district or other public corporation or political subdivision of the State now or hereafter existing.

(12)      'Project' shall mean any equipment or any 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 factory, mill, processing plant, assembly plant, fabricating plant, industrial distribution center or research and development facility, any air pollution control facility, noise abatement facility, water management facility, waste water collecting system, waste water treatment works, or solid waste disposal facility, including facilities for industrial, medical, electronic and other types of research and development and facilities for manufacturing, processing, assembling, or handling of any manufactured, agricultural or animal products or products of mining and other natural resources, or any combination of the foregoing, and including also the sites thereof and all other rights in land, whether improved or unimproved, furnishings, machinery, equipment, landscaping and site preparation, and all appurtenances and incidental facilities such as headquarters or office facilities whether or not at the location of the remainder of the project, warehouses, distribution centers, access roads, sidewalks, utilities, railway sidings, trucking and similar facilities, parking facilities, landing strips and other facilities for aircraft, waterways, dockage, wharfage and other improvements necessary or convenient for the construction, maintenance and operation of any such building or structure, or addition thereto; provided that no retail or wholesale store and no office, storage or other commercial facility not incidental to said use of any such building or structure shall be included in any project.

(13)      'Revenues' shall mean, with respect to any project, the rents, fees, charges, and other income or profit derived therefrom.

(14)      'Sewage' shall mean any substance that contains any of the waste products or excrement or other discharge from the bodies of human beings or animals, together with such ground water infiltration and surface water as may be present. The admixture with sewage of industrial waste or other waste shall also be considered to be sewage.

(15)      'Solid waste' shall mean garbage, refuse and other discarded materials, including, but not limited to, solid waste materials resulting from industrial, commercial, agricultural and residential activities.

(16)      'Solid waste disposal facility' shall mean a facility for the purpose of treating, compacting, composting or disposing of solid waste materials, including treatment, compacting, composting or disposal plants, site and equipment furnishings thereof, and their appurtenances, but not including services or equipment necessary for the collection of solid wastes.

(17)      'State' shall mean the State of North Carolina.

(18)      'Waste water' shall mean any water containing sewage or industrial waste or otherwise subjected to pollution.

(19)      'Waste water collecting system' shall mean a surface or underground system designed to convey waste water from commercial, residential, industrial or other properties to a waste water treatment works.

(20)      'Waste water treatment works' shall mean a facility for the purpose of treating, neutralizing, stabilizing, cooling, segregating or holding waste water, including, without limiting the generality of the foregoing, facilities for the treatment and disposal of sewage or industrial waste and the residue thereof, necessary intercepting, outfall and outlet sewers, pumping stations integral to such plants or sewers, site equipment and furnishings thereof and the appurtenances.

(21)      'Water management facilities' shall mean facilities for the purpose of the development, use and protection of water resources, including, without limiting the generality of the foregoing, facilities for water supply, facilities for stream flow improvement, dams, reservoirs, and other impoundments, water transmission lines, water wells and well fields, pumping stations and works for underground water recharge, stream monitoring systems, facilities for the stabilization of stream and river banks, and facilities for the treatment of streams and rivers, including, without limiting the generality of the foregoing, facilities for the removal of pollutants, oil, debris and other solid waste from the waters of and adjacent to the State of North Carolina.

(22)      'Distressed Areas' shall mean any county meeting at least one of the following tests:

a.         During the immediately preceding calendar year with respect to which published reports are available, the estimated rate of unemployment among the labor force of the county was at least 6%; or

b.         During the immediately preceding calendar year with respect to which published reports are available, the estimated average manufacturing wage of factory production workers in the county was at least 10% less than the State average for the same period; or

c.         During the immediately preceding calendar year with respect to which published reports are available, the estimated average per capita personal income in the county was 10% less than the State average for the same period; or

d.         The county is one which has suffered a substantial loss of population due to lack of employment opportunities. Such a county shall be defined as one which suffered a 1% or more loss of population between 1960 and 1970 (or the immediately preceding ten year period for which published reports are available); or

e.         The county is one where the loss, removal, curtailment, or closing of a major source of employment has caused within three years prior to, or threatens to cause within three years after, the date of the application on unusual and abrupt rise in unemployment of such magnitude that the unemployment rate for such county at the time of the application exceeds the national average, or can reasonably be expected to exceed the national average, by 50% or more if no action is taken to alleviate the problem; or

f.          The county becomes eligible for assistance under any of the tests and standards of Section 401(a) of the Public Works and Economic Development Act of 1965 of the United States of America (Pub. L. 89-136, Title IV, 401) as amended.

For the purposes of this subsection (22), "published reports" shall include the reports and statistical indices published by the Department of Administration, the Department of Conservation and Development, the Department of Labor, the Department of Public Health, the Department of Tax Research and the Employment Security Commission of the State, the U.S. Department of Commerce, the U.S. Department of Labor, and such other state and federal agencies, departments, commissions and bureaus as shall publish reports necessary to establish the existence of the aforementioned conditions.

"§ 159A-4.  Creation of Authorities. — (a) The governing body of any county is hereby authorized to create by resolution or ordinance a political subdivision and body corporate and politic of the State known as The_________________(the blank space to be filled in with the name of the county) County Pollution Abatement and Industrial Facilities Financing Authority', which shall consist of a board of seven commissioners, to be appointed by the governing body of such county in the resolution or ordinance creating such Authority, or by subsequent resolution or ordinance. Such resolution or ordinance shall state whether the Authority may issue its bonds for pollution control purposes or industrial facility financing purposes or both and a certified copy of such resolution shall be filed in the records of the Authority. At least thirty (30) days prior to the adoption of such resolution or ordinance, the governing body of such county shall file with the Department of Conservation and Development of the State of North Carolina and the Local Government Commission of North Carolina, on forms to be furnished by said Department and Commission, notice of its intention to adopt a resolution or ordinance creating an Authority. At the time of the appointment of the first board of commissioners the governing body of the county shall appoint two commissioners for initial terms of two years each, two commissioners for initial terms of four years each and three commissioners for initial terms of six years each and thereafter the terms of all commissioners shall be six years, except appointments to fill vacancies which shall be for the unexpired terms. Each appointed commissioner before entering upon his duties shall take and subscribe to an oath before some person authorized by law to administer oaths to execute the duties of his office faithfully and impartially, and a record of each such oath shall be filed with the governing body of the county and entered in its minutes. If at the end of any term of office of any commissioner a successor thereto shall not have been appointed, then the commissioner whose term of office shall have expired shall continue to hold office until his successor shall be so appointed.

(b)        Each commissioner of an Authority shall be a qualified elector and resident of the county for which the Authority is created, and no commissioner shall be an officer or employee of the State or any political subdivision or any agency of either thereof. Each commissioner of an Authority may be removed, with or without cause, by the governing body of the county which appointed him.

(c)        The board of commissioners of the Authority shall annually elect one of the commissioners as Chairman, another as Vice Chairman, and another person or persons, who may but need not be commissioners, as Treasurer, Secretary and, if desired, Assistant Secretary, any two of which three last named offices may be held by the same person. The Secretary or Assistant Secretary of the Authority shall keep a record of the proceedings of the Authority, and the Secretary shall be the custodian of all books, documents and papers filed with the Authority, the minute book or journal of the Authority and its official seal. Either the Secretary or the Assistant Secretary of the Authority may cause copies to be made of all minutes and other records and documents of the Authority and may give certificates under the official seal of the Authority to the effect that such copies are true copies, and all persons dealing with the Authority may rely upon such certificates.

(d)        A majority of the commissioners of an Authority then in office shall constitute a quorum. The affirmative vote of a majority of the commissioners of an Authority then in office shall be necessary for any action taken by the Authority. A vacancy in the board of commissioners of the Authority shall not impair the right of a quorum to exercise all the rights and perform all the duties of the Authority. Any action taken by the Authority under the provisions of this act may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted.

(e)        No commissioner of an Authority shall receive any compensation for the performance of his duties hereunder; however, subject to the provisions of G.S. 159A-11, each commissioner shall be paid his necessary expenses incurred while engaged in the performance of such duties.

(f)         Within 120 days of the date of creation of the Authority, the commissioners shall file a written application on behalf of the Authority to the Department of Conservation and Development of the State of North Carolina requesting that the Board of Conservation and Development make a determination that the proposed operation of the Authority is for a public purpose and stating the basis of such request. The Department of Conservation and Development shall then make such independent investigations as it deems advisable in order to make its determination. The formal determination shall be made by the full Board of Conservation and Development at its quarterly meeting, which meeting shall be public. At least one week prior to the date set for such meeting, the Board of Conservation and Development shall cause to be published, for three consecutive days, in a newspaper of general circulation within the county for which the Authority was created, notice that the application of the Authority is to be considered at such meeting. The final action and findings of fact by the Board of Conservation and Development shall be contained in a resolution containing the following:

(1)        A statement that the proposed operation of the Authority is or is not for a public purpose, and, if it finds that the proposed authority is for a public purpose,

(2)        That the finding of a public purpose was based upon the determination that a.           the county for which the Authority was created is a Distressed Area (and further stating which test or tests for designation as a Distressed Area were met), and/or

b.   that substantial air, water or noise pollution now exists within said county or may be expected to exist within five years of the application if no effective preventive measures are taken and c. the facts upon which the Board's findings are based.

At any time subsequent to the initial proceeding under G.S. 159A-4(f) in respect to a particular Authority, the Board of Conservation and Development may, only upon application of the Authority, revise its original findings due to a change in circumstances. The additional findings shall be set forth in a resolution in form similar to the resolution adopted at the original proceeding.

Any such findings shall be reviewable as provided in the General Statutes of North Carolina, Chapter 143, Article 33, only by action filed, by the Authority or by any person, firm or corporation who objected at the hearing held pursuant to this Section, within thirty (30) days of the date of the resolution of the Board of Conservation and Development, in the Superior Court of Wake County challenging such findings. Such Superior Court is hereby vested with jurisdiction to hear such action, but if no such action is filed within the thirty (30) days herein prescribed, such findings shall become final and the basis therefor conclusively presumed, and no court shall have authority to inquire into such matters. The petition filed in such action shall name as defendants the Board of Conservation and Development and the Authority and such defendants and the Attorney General of the State of North Carolina shall each be served with a copy of the petition.

"§ 159A-5.  General powers. — After a finding that such Authority is for a public purpose under G.S. 159A-4(f) becomes final, each Authority shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Chapter, including, but without limiting the generality of the foregoing, the power:

(1)        To adopt by-laws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations and policies in connection with the performance of its functions and duties;

(2)        To adopt an official seal and alter the same at pleasure;

(3)        To maintain an office at such place or places within the boundaries of the county for which it was created as it may determine;

(4)        To sue and be sued in its own name, plead and be impleaded;

(5)        To receive, administer and comply with the conditions and requirements respecting any gift, grant or donation of any property or money;

(6)        To make and execute agreements of lease, contracts and other instruments necessary or convenient in the exercise of the powers and functions of the Authority under this act, including contracts with persons, firms, corporations and others;

(7)        To acquire by purchase, lease, gift or otherwise, but not by eminent domain, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, and interests in land less than the fee thereof, for the construction, operation or maintenance of any project; provided that no project shall be financed hereunder unless the Authority shall, in acquiring the site thereof, obtain thereby at least a leasehold interest, sufficient for the purpose, terminating not earlier than 25 years from the final maturity date of the bonds that shall be initially issued to pay any part of the cost of such project;

(8)        To sell, lease, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any real or personal property or interest therein;

(9)        To pledge or assign any money, rents, charges, fees or other revenues and any proceeds derived by the Authority from the sales of property and insurance or condemnation awards;

(10)      To issue bonds of the Authority for the purpose of providing funds to pay all or any part of the cost of any project or for the purpose of refunding any bonds theretofore issued;

(11)      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;

(12)      To fix, charge and collect rents, fees and charges for the use of any project;

(13)      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

(14)      To do all acts and things necessary, convenient or desirable to carry out the purposes, and to exercise the powers granted to the Authority herein.

"§ 159A-6.  Location of projects. — Any project or projects of an Authority shall be located within the boundaries of the county for which the Authority was created.

"§ 159A-7.  Agreements of lease. — No project financed under the provisions of this Chapter shall be operated by an Authority or the State or any political subdivision or any agency thereof. The Authority shall lease a project or projects to one or more persons, firms or private corporations for operation and maintenance in such manner as shall effectuate the purposes of this Chapter, under an agreement of lease in form and substance not inconsistent herewith. Any such agreement of lease may provide, among other provisions, that:

(1)        The lessee shall, at its own expense, operate, repair and maintain the project or projects leased thereunder;

(2)        The rent payable under the lease shall in the aggregate be not less than an amount sufficient to pay all of the principal of and interest and redemption premiums, if any, on the bonds that shall be issued by the Authority to pay the cost of the project or projects leased thereunder;

(3)        The lessee shall pay all other costs incurred by the Authority in connection with the financing, construction and administration of the project or projects leased, except as may be paid out of the proceeds of bonds or otherwise, including, but without limitation, insurance costs, the cost of administering the bond resolution authorizing the bonds and any trust agreement securing the bonds and the fees and expenses of trustees, paying agents, attorneys, consultants and others;

(4)        The term of the lease shall terminate not earlier than the date on which all such bonds and all other obligations incurred by the Authority in connection with the project or projects leased thereunder shall be paid in full, including interest, principal and redemption premiums, if any, or adequate provision for such payment shall be made; and

(5)        The lessee's obligation to pay rent shall not be subject to cancellation, termination or abatement by the lessee until such payment of the bonds or provision for such payment shall be made. Any such agreement of lease may contain such additional provisions as in the determination of the Authority are necessary or convenient to effectuate the purposes of this act, including options for extensions of the term and renewals of the lease and options, to be exercised at such time or times not later than one year after the expiration of the term of the lease or any extension thereof, to purchase the project or projects leased thereunder pursuant to such terms and conditions consistent with this act and for such consideration, if any, as shall be prescribed in the lease; provided that, except as may otherwise be expressly stated in the agreement of lease to provide for any contingencies involving the loss of the tax- exempt status of the bonds under federal law or the destruction or condemnation of the project or projects leased, or any substantial portion thereof, such option to purchase may not be exercised until the expiration of a period of not less than 10 years from the date the final installment of the first year's rent under the lease shall be paid by the lessee and until all bonds issued for such project or projects, including all interest and redemption interest and redemption premiums, if any, and all other obligations incurred by the Authority in connection with such project or projects shall have been paid in full or adequate provision therefor shall have been made.

"§ 159 A-8.  Tax exemption. — The exercise of the powers granted by this act in all respects will be for a public purpose and the benefit of the people of the State, for the maintenance and promotion of the quality of their environment, for the increase of their industry and prosperity, for the provision of gainful employment and for the improvement of their living conditions and general welfare and will constitute the performance of essential public functions, and an Authority shall not be required to pay any taxes on any project or any other property owned by the Authority under the provisions of this act or upon the income therefrom, and the bonds issued under the provisions of this act, their transfer and the income therefrom (including any profit made on the sale thereof), shall at all times be free from taxation by the State or any political subdivision or any agency of either thereof, excepting inheritance or gift taxes. Nothing in this Chapter, however, shall be construed as exempting from taxation or assessments the leasehold interest of any lessee in any project or any other property or interest owned by any lessee nor shall anything in this act be construed to affect any exemption from taxation which "might otherwise be available to any lessee under the laws of the State of North Carolina. Such leasehold interest is hereby classified for purposes of taxation as having the same value as the fee interest in that property.

"§ 159A-9.  Construction contracts. — Contracts for the construction of the project may be awarded by an Authority in such manner as in its judgment will best promote free and open competition, including advertisement for competitive bids in a newspaper of general circulation in the county in which the project is to be located; provided, however, that if an Authority shall determine that the purposes of the Chapter will thereby be more effectively served, the Authority in its discretion may award contracts for the construction of any project, or any part thereof, upon a negotiated basis as determined by the Authority. An Authority shall prescribe such bid security requirements and other procedures in connection with the award of such contracts as in its judgment shall protect the public interest. An Authority may by written contract engage the services of the lessee or prospective lessee of any project in the construction of such project and may provide in such contract that the lessee or prospective lessee may act as an agent of, or an independent contractor for, the Authority for the performance of the functions described therein, subject to such conditions and requirements, consistent with the provisions of this act, as shall be prescribed in such contract, including such functions as the acquisition of the site and other real property for such project, the preparation of plans, specifications and contract documents, the award of construction and other contracts upon a competitive or negotiated basis, the construction of such project, or any part thereof, directly by such lessee or prospective lessee, the inspection and supervision of construction, the employment of engineers, architects, builders and other contractors and the provision of money to pay the cost thereof pending reimbursement by the Authority. Any such contract may provide that the Authority may, out of proceeds of bonds, make advances to or reimburse the lessee or prospective lessee for its costs incurred in the performance of such functions.

"§ 159A-10.  Conflict of interest. — No officer, member, agent or employee of the Authority or the State or any political subdivision or any agency thereof shall be interested either directly or indirectly in any contract with an Authority or in the sale of property, real or personal, to the Authority for the purposes of the projects; provided, however, that this section shall not apply to the ownership of less than one per centum of the stock of any corporation.

"§ 159A-11.  Credit of State not pledged. — (a) Bonds issued under the provisions of this Chapter shall not be deemed to constitute a debt of the State or of any political subdivision or of any agency thereof or a pledge of the faith and credit of the State or of any political subdivision or of any such agency, but shall be payable solely from the revenues and other funds provided therefor. Each bond issued under this Chapter shall contain on the face thereof a statement to the effect that the Authority shall not be obligated to pay the same nor the interest thereon except from the revenues, proceeds and other funds pledged therefor and that neither the faith and credit nor the taxing power of the State or of any political subdivision or of any agency thereof is pledged to the payment of the principal of or the interest on such bonds.

(b)        Expenses incurred by an Authority in carrying out the provisions of this act shall be made payable from revenues, proceeds from the sale of bonds, and any contributions, gifts or donations made available to the Authority, and no liability or obligation shall be incurred by an Authority hereunder beyond the extent to which moneys shall have been so provided.

"§ 159A-12.  Bonds. — (a) Each Authority is hereby authorized to provide for the issuance, at one time or from time to time, of bonds of the Authority for the purpose of paying all or any part of the cost of any project or projects. The principal of and the interest on such bonds shall be payable solely from the funds herein provided for such payment. The bonds of each issue shall bear interest at such rate or rates as may be determined by the Local Government Commission of North Carolina with the approval of the Authority and the lessee and within the limitation of G.S. 24-1.1, as amended, and successor provisions. The bonds of each issue shall be dated and shall mature at such time or times not exceeding 40 years from their date or dates, as may be determined by the Authority, and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The Authority shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the State. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The Authority may also provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in coupon or in fully registered form, or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. No bonds may be issued by an Authority unless the issuance thereof is approved by the Local Government Commission of North Carolina. The Authority shall file with the Secretary of the Local Government Commission an application requesting approval of the issuance of bonds which shall include such information concerning the proposed financing and the prospective lessee as the Secretary may require.

In determining whether a proposed bond issue should be approved, the Local Government Commission shall consider, without limitation, the following:

(1)        The financial responsibility and the capability of the prospective lessee to fulfill its obligations under the agreement of lease. In determining such financial responsibility, consideration shall be given to the lessee's ratio of current assets to current liabilities, net worth, earnings trends, coverage of all fixed charges, the nature of the industry or business involved and its stability, any guarantee of the obligations by some other financially responsible corporation, firm or person, and other factors determinative of the capability of the lessee, financially and otherwise, to fulfill its obligations consistently with the purpose of this Chapter.

(2)        The ability of the political subdivision in or near which the proposed project is to be located to cope satisfactorily with the impact of the project and to provide, or cause to be provided, the public facilities, including utilities, and public services that will be necessary for the construction, operation, repair and maintenance of the project and on account of any increases in population which are expected to result therefrom.

(3)        The making of adequate provision for the operation, repair and maintenance of the proposed project at the expense of the lessee and for the payment of the principal of and the interest on the bonds.

(4)        The effect of the proposed financing upon any scheduled or proposed sale of tax-exempt obligations by the State or 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 the bonds if, upon the information and evidence it receives, it finds and determines that the criteria set forth in the preceding paragraph of this section are satisfied and that the proposed financing will effectuate the purposes of this Chapter. Upon the filing with the Local Government Commission of a resolution of the Authority requesting that its bonds be sold and the issuance of a formal Certificate of Approval by the Director of Conservation and Development as provided for in G.S. 159A-21, such bonds may be sold in such manner, either at public or private sale, and for such price as the Local Government Commission shall determine to be for the best interests of the Authority and effectuate best the purposes of this Chapter, provided that such sale shall be approved by the Authority and the lessee, but no such sale shall be made at a price so low as to cause the net effective interest rate of an issue of bonds to exceed the interest limits set forth in G.S. 24-1.1, as amended, and successor provisions. For the purposes of this section, 'net effective interest rate' shall be computed, without regard to (1) any optional or mandatory redemption prior to the designated maturity dates of the bonds, or (2) any costs incident to the issuance and sale of the bonds including any reasonable legal fees, underwriter's or fiscal agent's fees, recording and issuance cost, by dividing the total amount of interest to accrue on the bonds from their date to their respective maturities, less the amount of any premium above par or plus the amount of any discount at which the bonds are being or have been sold, by the sum of the products derived by multiplying the principal amounts of such bonds maturing on each maturity date by the number of years from the date of such bonds to their respective maturities.

(b)        The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the project or projects, or portion or portions thereof, for which such bonds shall have been 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 such bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds of any issue, by reason of increased construction costs or error in estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficiency, and, unless otherwise provided in the bond resolution or in the trust agreement, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed such cost, such excess shall be deposited to the credit of the sinking fund for such bonds, or, if so provided in such resolution or trust agreement, may be applied to the payment of the cost of any additional project or projects. The Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.

(c)        Bonds may be issued under the provisions of this act without obtaining, except as otherwise expressly provided in this act, the consent of the State or of any political subdivision or of any agency of either thereof, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by this Chapter and the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same.

"§ 159A-13.  Trust agreement. — In the discretion of the Authority any bonds 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. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the fees, rents, charges, proceeds from the sale of any project, or part thereof, insurance proceeds, condemnation awards and other funds and revenues to be received therefor, but shall not convey or mortgage any project or any part thereof.

Such trust agreement or resolution providing for the issuance of such bonds 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 covenants setting forth the duties of the Authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the project or projects in connection with which such bonds shall have been authorized, the fees, rents and other charges to be fixed and collected, the sale of any project, or part thereof, or other property, the terms and conditions for the issuance of additional bonds, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the State which may act as depositary of the proceeds of bonds, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. Any such trust agreement or resolution may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the project or projects in connection with which bonds are issued or as an expense of administration of such project or projects, as the case may be.

"§ 159A-14.  Revenues. — (a) The Authority is hereby authorized to fix and to collect fees, rents and charges for the use of any project or projects, and any part or section thereof, and to contract with any person, partnership, association or corporation respecting the use thereof. The Authority may require that the lessee or users of any project, or any part thereof, shall operate, repair and maintain the project and shall bear the cost thereof and other costs of the Authority in connection with the project or projects leased, as may be provided in the agreement of lease or other contract with the Authority, in addition to other obligations imposed under such agreement or contract.

(b)        The fees, rents and charges shall be so fixed as to provide a fond sufficient, with such other funds as may be made available therefor, to pay the principal of and the interest on such bonds as the same shall become due and payable and to create any necessary or desirable reserves for such purposes. The fees, rents and charges and all other revenues and other proceeds derived from the project or projects in connection with which the bonds of any issue shall have been issued, except such part thereof, if any, as may be provided for in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby 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 fees, rents, charges and other revenues and moneys 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. Neither the resolution nor any trust agreement, financing statement, continuation statement or other instrument by which a pledge is created or by which the Authority's interest in any revenues is assigned need be filed or recorded in order to perfect the lien thereof as against third parties except in the records of the Authority. The use and disposition of money to credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another.

"§ 159A-15.  Trust Funds. — Notwithstanding any other provisions of law to the contrary, all money received pursuant to the authority of this Chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this Chapter. The resolution authorizing the bonds of any issue or the trust agreement securing such bonds may provide that any of such moneys may be temporarily invested and reinvested pending the disbursement thereof in such securities and other investments as shall be provided in such resolution or trust agreement, and shall provide that any officer with whom, or any bank or trust company with which, 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.

"§ 159A-16.  Remedies. — Any holder of bonds issued under the provisions of this Chapter or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such trust agreement or the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, actions, mandamus, or other proceedings, protect and enforce any and all rights under the laws of the State or granted hereunder or, to the extent permitted by law, under such agreement or resolution authorizing the issuance of such bonds or under any agreement of lease or 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 resolution to be performed by an lessee or Authority or by any officer thereof, including the fixing, charging and collecting of fees, rents, and charges.

"§ 159A-17.  Negotiable instruments. — Notwithstanding any of the foregoing provisions of this Chapter or any recitals in any bonds issued under the provisions of this Chapter, all such bonds and interest coupons appertaining thereto shall be and are hereby made negotiable instruments under the laws of this State, subject only to the provisions for registration in any resolution authorizing the issuance of such bonds or any trust agreement securing the same.

"§ 159A-18.  Bonds eligible for investment. — Bonds issued by an Authority under the provisions of this Chapter are hereby made securities in which all public officers and agencies of the State and all 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 bonds are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the State or any political subdivision for any purpose for which the deposit of bonds or obligations of the State or any political subdivision is now or may hereafter be authorized by law.

"§ 159A-19.  Revenue refunding bonds. — (a) Each Authority is hereby authorized to provide by resolution for the issuance of refunding bonds of the Authority for the purpose of refunding any bonds 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 bonds, and, if deemed advisable by the Authority, for either or both of the following additional purposes:

(1)        Constructing improvements, additions, extensions or enlargements of the project or projects in connection with which the bonds to be refunded shall have been issued, and

(2)        Paying all or any part of the cost of any additional project or projects.

The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Authority in respect to the same shall be governed by the provisions of this Chapter which relate to the issuance of bonds, in so far as such provisions may be appropriate therefor.

(b)        Refunding bonds issued under this section may be sold or exchanged for outstanding bonds issued under this act 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 bonds. Refunding bonds may be issued, in the determination of the Authority, at any time not more than five years prior to the date of maturity or maturities or the date selected for the redemption of the bonds being refunded thereby. Pending the application of the proceeds of such refunding bonds, with any other available funds, to the payment of the principal of and accrued interest and any redemption premium on the bonds being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding bonds or in the trust agreement securing the same, to the payment of any interest on such refunding bonds and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America which shall mature or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.

"§ 159A-20.  No power of eminent domain. — No Authority shall have any right or power to acquire any property through the exercise of eminent domain or any proceedings in the nature of eminent domain.

"§ 159A-21.  Approval of each bond issue. — Prior to the issuance of any bonds under the provisions of this Chapter, an Authority shall apply to the Department of Conservation and Development for its approval of the issuance of said bonds. The Department will first make certain pertinent findings as follows:

(1)        That, insofar as the proposed project to be financed is concerned, there have been no material changes in the facts that were the basis of the determination of the Board of Conservation and Development that the County qualified as a 'Distressed Area' as said facts were set forth in the most recent pertinent resolution of the Board of Conservation and Development pursuant to the proceedings conducted under G.S. 159A-4(f)

(2)        That, insofar as the proposed project to be financed is concerned, there have been no material changes in the facts that were the basis of the determination of the Board of Conservation and Development regarding pollution as said facts were set forth in the most recent pertinent resolution of the Board of Conservation and Development pursuant to the proceedings conducted under G.S. 159A-4(f)

(3)        That, insofar as can be determined from published reports and the information available, the Authority has correctly determined that (i) the proposed project to be financed will alleviate those specific conditions which were the basis of the most recent pertinent finding by the Board of Conservation and Development pursuant to the proceedings under G.S. 159A-4(f), and (ii) said conditions continue to exist

(4)        The proposed project (i) will alleviate the aforementioned pollution conditions or (ii) will alleviate or tend to alleviate the conditions of below average manufacturing wages, below average per capita income or high unemployment previously stated in this act, and will also make a significant contribution to the economic growth of the county in which it is to be located, will provide gainful employment to the residents of the county for which the Authority was created, and will advance the economic prosperity and the public welfare of said county, the State and people thereof

(5)        The proposed project will not cause the abandonment of an industrial or research facility existing elsewhere in the State.

After the Department has made these findings, and if the project is approved, the Director shall cause said findings and notice of such approval to be published in a newspaper of general circulation within the county for which the Authority was created. Any such findings and approval shall be reviewable as provided in Article 33 of Chapter 143 of the General Statutes of North Carolina only by an action filed, within thirty (30) days after notice of such findings and approval shall have been so published, in the Superior Court of Wake County challenging such findings and approval, or the authority to issue the bonds, the legality thereof or the source of payment thereof. Such Superior Court is hereby vested with jurisdiction to hear such action, but if no such action is filed within the thirty (30) days herein prescribed, the authority to issue bonds, the legality thereof, shall be conclusively presumed, and no court shall have authority to inquire into such matters. The petition filed in such action shall name as defendants the Department of Conservation and Development and the Authority, and such defendants and the Attorney General of the State of North Carolina shall each be served with a copy of such petition. If the Department of Conservation and Development makes the above such findings and gives such approval and no action has been filed to contest such findings and approval or the issuance of such bonds, the Director of the Department of Conservation and Development shall issue a formal Certificate of Approval evidencing the making of such findings and the approval of the issuance of the bonds.

"§ 159A-22.  Dissolution of Authorities. — Whenever the board of commissioners of an Authority and the governing body of the county for which such Authority was created shall by joint 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 of commissioners and governing body may declare the Authority to be dissolved. On the effective date of such joint resolution, the title to all funds and other property owned by the Authority at the time of such dissolution shall vest in the county or in such other political subdivisions as the county shall direct, and possession of such funds and other property shall forthwith be delivered to the county or to such other political subdivisions in accordance with the direction of the county.

"§ 159A-23.  Annual reports. — Each Authority shall, promptly following the close of each calendar year, submit an annual report of its activities for the preceding year to the governing body of the county for which the Authority was created. Each such report shall set forth a complete operating and financial statement covering the operations of the Authority during such year. The Authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and the cost thereof may be treated as a part of the cost of construction of a project, to the extent such audit covers the construction of the project, or otherwise as part of the expense of administration of the project covered by such audit.

"§ 159A-24.  Officers not liable. — No commissioner of any Authority shall be subject to any personal liability or accountability by reason of his execution of any bonds or the issuance thereof.

"§ 159A-25.  Additional method. — The foregoing sections of this Chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of bonds or refunding bonds under the provisions of this Chapter need not comply with the requirements of any other law applicable to the issuance of bonds."

Sec. 2.  Liberal construction. This act, being necessary for the prosperity and welfare of the State and its inhabitants, shall be liberally construed to effect the purposes hereof

Sec. 3.  Inconsistent laws inapplicable. In so far as the provisions of this Chapter are inconsistent with the provisions of any general or special laws, or parts thereof, the provisions of this act shall be controlling

Sec. 4.  Severability. If any clause or other portion of this act shall be held invalid, that decision shall not affect the validity of the remaining portions of this act. It is hereby declared that all such remaining portions of this act are severable and that the General Assembly would have enacted such remaining portions if the portions that may be so held to be invalid had not been included in this act.

Sec. 5.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 21st day of June, 1971.