NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 87

HOUSE BILL 256

 

 

AN ACT TO AMEND CHAPTERS 157 AND 160 OF THE GENERAL STATUTES SO AS TO AUTHORIZE HOUSING AUTHORITIES AND REDEVELOPMENT COMMISSIONS TO ISSUE BONDS BEARING INTEREST IN EXCESS OF 6% AND TO VALIDATE CERTAIN CONTRACTS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 157-15 is hereby amended by deleting from the first paragraph thereof the words "not exceeding six per centum (6%) per annum payable semiannually" and, by rewriting the last sentence of the second paragraph thereof to read as follows: "The bonds may be sold at such price or prices as the authority shall determine."

Sec. 2.  Article I of Chapter 157 of the General Statutes is hereby amended by adding a new section designated as G.S. 157-32.4 to read as follows:

"G.S. 157-32.4.  Other validation of contracts, agreements, etc. — All contracts or agreements of housing authorities heretofore entered into with the Federal Government or its agencies, and with municipalities or others relating to financial assistance for housing projects in which it was required that loans or advances shall bear an interest rate in excess of six per centum (6%) per annum, or in which a municipality or others had agreed to pay funds equal to the interest in excess of six per centum (6%) per annum are hereby validated, ratified, confirmed, approved and declared legal with respect to the payment of interest in excess of six per centum (6%), and all things done or performed in reference thereto. The housing authorities are hereby authorized to assume the full obligation of the municipalities under the contracts or agreements with reference to interest in excess of six per centum (6%), and to reimburse any municipality which has made any interest payment under such contracts or agreements."

Sec. 3.  G.S. 160-466(c) is hereby amended by deleting therefrom the words "not exceeding six per centum (6%) per annum."

Sec. 4.  Article 37 of Chapter 160 of the General Statutes is hereby amended by adding a new section to be designated as G.S. 160-474.2 and to read as follows:

"G.S. 160-474.2.  Contracts and agreements validated. — All contracts or agreements of redevelopment commissions heretofore entered into with the Federal Government or its agencies, and with municipalities or others relating to financial assistance for redevelopment projects in which it was required that loans or advances shall bear an interest rate in excess of six per centum (6%) per annum, or in which a municipality or others had agreed to pay funds equal to the interest in excess of six per centum (6%) per annum are hereby validated, ratified, confirmed, approved and declared legal with respect to the payment of interest in excess of six per centum (6%), and all things done or performed in reference thereto. The redevelopment commissions are hereby authorized to assume the full obligation of the municipalities under the contracts or agreements with reference to interest in excess of six per centum (6%), and to reimburse any municipality which has made any interest payment under such contracts or agreements."

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

In the General Assembly read three times and ratified, this the 15th day of March, 1971.