NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 858

HOUSE BILL 1264

 

 

AN ACT TO ESTABLISH FINANCING AUTHORITY FOR A PARKING DECK WITHIN THE STATE GOVERNMENT COMPLEX.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Short title. This act shall be known and may be cited as the North Carolina Parking Facilities Revenue Bond Act.

Sec. 2.  Purpose. The purpose of this act is to authorize the financing of off-street parking facilities within the State government complex in order to provide parking facilities for the public, including, without limitation, visitors to State offices and State employees.

Sec. 3.  Definitions. As used in this section the pertinent terms are defined as follows:

(1)        "Secretary" shall mean the Secretary of the North Carolina Department of Administration.

(2)        "State Treasurer" shall mean the Treasurer of the State of North Carolina.

(3)        "Project" shall mean any facility or facilities within the boundaries of the State government complex to be operated by or on behalf of the Department of Administration for the parking and/or storage of vehicles and, without limitation, shall include all real and personal property, driveways, roads, approaches, structures, garages, meters, mechanical equipment and all appurtenances and facilities, either at, above, or below ground level, which are used or usable in connection with such parking and/or storage of such vehicles.

(4)        "Cost" shall mean and include: all costs related to the design; construction with reasonable contingency; acquisition of all property, demolition or relocation of any on-site structures; fixed and movable equipment; finance charges; interest prior to and during construction, and, if deemed advisable by the secretary, for a period not exceeding one year after completion of such construction; reserves for debt service; administrative expenses for the sale of bonds; and, such other expenses as may be necessary or incident to the construction of the project and the financing of such construction, including the reimbursement of any monies advanced by the State for the payment of any of the above mentioned project costs.

(5)        "Revenues" shall mean and include all or any part of the fees, rents, charges and other income derived from and/or in connection with the operation and/or ownership of this project or any other State parking facility within the State government complex.

Sec. 4.  General grant of powers. The Secretary of the Department of Administration is authorized, subject to the requirements of this act:

(1)        to acquire property for and construct the project within the limitation of authorization herein defined and to operate the project or enter into contracts for the management, lease, use, or operation of the project or any portion thereof;

(2)        to issue revenue bonds and bond anticipation notes as herein provided to pay the cost of the project in whole or in part, and to fund or refund the same;

(3)        to fix, revise, charge, and collect fees, rents and charges for the use of and for the services and facilities furnished by the project any portion thereof;

(4)        to establish and enforce rules and regulations for the use of and for the services and facilities furnished by the project or any portion thereof;

(5)        to acquire, hold, lease and dispose of real and personal property in the exercise of his powers and the performance of his duties hereunder and to lease the project or any portion thereof for such period or periods of years, not exceeding 40 years in total, upon such terms and conditions as the Council of State may determine;

(6)        to employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and such other employees and agents as may be necessary in his judgment in connection with the financing, construction and operation of the project; and to fix their compensation where required;

(7)        to make and enter into all contracts and agreements necessary or incidental to the performance of his duties and the execution of his powers under this act;

(8)        to receive and accept from any federal, state, or other public agency or agencies or from any private agency or agencies, donations, loans, grants, or contributions of property, labor or other things of value, to be held, used and applied only for such aspects of the project for which such donations, loans, grants, or contributions may be made;

(9)        to carry insurance on the project from the North Carolina State Property Fire Insurance Fund in such amounts and covering such risks as the Commissioner of Insurance may deem advisable;

(10)      to do all acts and things necessary or convenient to carry out the powers expressly granted by this act.

Sec. 5.  Issuance of revenue bonds. It is the intent of this General Assembly that the total self-liquidating portion of said project not exceed two million dollars ($2,000,000). If upon receipt of bids, the level of authorization is insufficient to award contracts, the Advisory Budget Commission may authorize an increase in scope of the project, in no case to exceed two million three hundred thousand dollars ($2,300,000), if in its opinion, sufficient reasonable attempts to award the contracts through negotiation have been made.

Revenue bonds authorized by this act are to be designated "State of North Carolina Parking Facilities Revenue Bonds" (with appropriate series designation). Said bonds may be issued, at one time or from time to time, not to exceed two million three hundred thousand dollars ($2,300,000) for the purpose of paying all or any part of the cost of the project in excess of any direct appropriation or appropriation by the North Carolina General Assembly. The bonds of each issue shall be dated, shall bear interest at such rate or rates, shall mature at such time or times not exceeding 40 years from their date or dates of issuance and may be made redeemable before maturity, at such price or prices and under such terms and conditions, all as may be fixed by the State Treasurer with the approval of the secretary, subject to review by the Council of State.

The bonds shall be signed on behalf of the State of North Carolina by the Governor or shall bear his facsimile signature; shall be signed by the State Treasurer, or shall bear his facsimile signature, shall bear the Great Seal of the State or a facsimile thereof impressed or imprinted thereon; and shall carry interest coupons which shall bear a facsimile of the signature of the State Treasurer. In the event that the bonds shall bear the facsimile signature of the State Treasurer, the bonds shall also be signed by an assistant treasurer or a deputy treasurer, as the State Treasurer shall determine. Should any officer whose signature or facsimile signature appears on any bonds or coupons cease to be such officer before the delivery of the bonds, such signature or facsimile shall nevertheless have the same validity for all purposes as if the officer had remained in office until delivery. The form and denomination of the bonds shall be as the State Treasurer may determine in conformity with this act, and the bonds shall be subject to registration as is now or hereafter may be provided by law for State bonds, and provision may also be made for the reconversion into coupon bonds of any bonds registered as to both principal and interest.

Subject to determination by the secretary as to the manner in which the bonds shall be offered for sale, whether by publishing notices in certain newspapers and financial journals or by mailing notices or by inviting bids by correspondence or otherwise, the State Treasurer is authorized to sell the bonds, at either public or private sale, at one time or from time to time at the best price obtainable.

The proceeds of the bonds shall be disbursed in such manner and under such restrictions, if any, as the State Treasurer shall determine, with the approval of the secretary, subject to review by the Council of State.

The order providing for the issuance of the bonds, and any trust agreement securing such bonds, may also contain such limitations upon the issuance of additional revenue bonds as the State Treasurer may deem proper, with the approval of the secretary and the Council of State.

Bonds or bond anticipation notes may be issued under this act and other powers vested in the State Treasurer or the Secretary of the Department of Administration or the Council of State under this act may be exercised without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions, or things which are specifically required by this act.

Sec. 6.  Trust agreement. In the discretion of the secretary, subject to approval by the Council of State, any revenue bonds issued under this act may be secured by a trust agreement by and between the secretary, representing the State, 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 order of the secretary providing for the issuance of such bonds may pledge or assign the revenues to be received from or in connection with the operation of the project, but shall convey or mortgage the project or any part thereof. Such trust agreement or order may contain such provisions for protecting and enforcing the rights and remedies of the holders of such bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the secretary in relation to the acquisition, construction, improvement, maintenance, repair and operation of the project, the fees, rents and charges to be fixed and collected, and the custody, safeguarding and application of all monies. 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 or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the secretary. Any such trust agreement or order may set forth the rights and remedies of the holders of the bonds and of the trustee, and may restrict the individual right of action by such holders. In addition to the foregoing, any such trust agreement or order may contain such other provisions as the secretary or State treasurer may deem reasonable and proper for the security of such holders. Expenses incurred in carrying out the provisions of such trust agreements or order may be treated as a part of the cost of the project for which such bonds are issued or as an expense of operation of the project.

Sec. 7.  Revenues. The secretary is hereby authorized to fix, revise, charge, and collect fees, rents, and charges for the use of and for the services and facilities furnished by the project or any portion thereof, on any time basis he deems appropriate and to contract with any person, partnership, association or corporation desiring the use of any part or all thereof, and to fix the terms, conditions, fees, rents, and charges for such use. Such fees, rents, and charges shall be so fixed and adjusted, with relation to other revenues or funds available therefor, as to provide funds at least sufficient, with such other revenues or funds, if any, (1) to pay the cost of maintaining, repairing, and operating the project, (2) to pay the principal of and the interest on such bonds as the same shall become due and payable and (3) to create and maintain reserves for such purposes. Such fees, rents, and charges shall not be subject to supervision or regulation by any municipal corporation, political subdivision, or commission, board, bureau, or agency of the State. A sufficient amount of revenues, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and to provide such reserves therefor and for renewals, replacements, extensions, enlargements and improvements as may be provided for in the order 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 order 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 so pledged and thereafter received, on behalf of the secretary 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 secretary, irrespective of whether such parties have notice thereof. Neither the order nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Secretary and the Council of State. The use and disposition of monies to the credit of such sinking fund shall be subject to the provisions of the order authorizing the issuance of such bonds or of such trust agreement.

Sec. 8.  Trust funds. All monies received pursuant to the authority of this act, whether as proceeds from the sale of bonds or bond anticipation notes or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this act. The order authorizing the issuance of, or any trust agreement securing, any bonds or bond anticipation notes may provide that any of such monies may be temporarily invested pending the disbursement thereof and shall provide that any officer with whom, or any bank or trust company with which, such monies shall be deposited shall act as trustee of such monies and shall hold and apply the same for the purposes hereof, subject to such requirements as this act and such order or trust agreement may provide. Any such monies may be deposited or invested as provided in such resolution or trust agreement in permissible deposits or investments under G.S. 147-69.1.

Sec. 9.  Remedies. Any holder of bonds or bond anticipation notes issued under this act or of any coupons appertaining thereto and the trustee or trustees under any trust agreement or resolution authorizing the issuance of such bonds, except to the extent the rights herein given may be restricted by such trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the State or granted hereunder or under such trust agreement or order, and may enforce and compel the performance of all duties required by this act or by such trust agreement or order to be performed by the secretary, including the fixing, charging and collecting of fees, rents and charges.

Sec. 10.  Bond anticipation notes. With the approval of the secretary, subject to approval by the Council of State, the State Treasurer shall have the power, at any time and from time to time after the issuance of bonds hereunder shall have been authorized by the secretary, to borrow money for the purpose for which such bonds are to be issued in anticipation of the receipt of the proceeds of the sale of such bonds and within the authorized maximum amount of such bond issue. Bond anticipation notes shall be issued for monies borrowed under the provisions of this section, which notes shall be payable solely from the proceeds of the sale of such bonds or revenues derived from the project. Such notes may be renewed from time to time and such notes, including any renewal notes, shall mature not later than five years after the date on which the issuance of such bonds shall have been authorized. Such notes shall be authorized, shall be in such denomination or denominations, shall bear interest at such rate or rates, shall be in such form and shall be executed in such manner, all as may be fixed by the State Treasurer with the approval of the secretary and subject to approval by the Council of State.

Subject to determination by the secretary as to the manner in which the notes shall be offered for sale, whether by publishing notices in certain newspapers and financial journals or by mailing notices or by inviting bids by correspondence or otherwise, the State Treasurer is authorized to sell the notes, at either public or private sale, at one time or from time to time at the best price obtainable.

Sec. 11.  Credit of State not pledged. Revenue bonds and bond anticipation notes issued under this act shall not be deemed to constitute a debt or liability of the State or a pledge of the faith and credit of the State, but shall be payable solely from the funds herein provided therefor. All such revenue bonds and notes shall contain on the face thereof a statement to the effect that neither the State, the Council of State, nor the secretary shall be obligated to pay the same or the interest thereon except from revenues as herein defined or, in the case of notes, from the proceeds of bonds, and that neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal of or the interest on such bonds and notes. The issuance of revenue bonds or notes shall not directly or indirectly or contingently obligate the State to levy or to pledge any taxes whatsoever therefor.

Sec. 12.  Construction contracts. Contracts for the construction of the project will be subject to the provisions of Article 8 of Chapter 143 of the North Carolina General Statutes.

Sec. 13.  Negotiable instruments. Notwithstanding any of the foregoing provisions of this act or any recitals in any bonds or bond anticipation notes issued under the provisions of this act, all such bonds or notes and interest coupons appertaining thereto shall be and are hereby made negotiable instruments under the laws of this State, subject only to any applicable provisions for registration.

Sec. 14.  Coupons as payment. The coupons appertaining to any bonds or bond anticipation notes after maturity shall be receivable in payment of all taxes, debts, dues, licenses, fines, and demands of any kind whatever due the State.

Sec. 15.  Tax exemptions. All of the bonds, bond anticipation notes and coupons authorized by this act and their transfer 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, and the interest on the bonds and the notes shall not be subject to taxation as to income, nor shall the bonds, notes, or coupons be subject to taxation when constituting a part of the surplus of any bank, trust company or other corporation.

Sec. 16.  Investment legality. It shall be lawful for all executors, administrators, guardians, and fiduciaries generally, and all sinking fund commissions, to invest any monies in their hands in bonds and bond anticipation notes authorized by this act.

Sec. 17.  Conflicting laws. This act is in addition to, not in derogation of, any other powers and authorities heretofore granted.

Sec. 18.  Effective date. This act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 25th day of June, 1975.