North Carolina General Statutes 159-110. Security of project development financing debt instruments
Terms Used In North Carolina General Statutes 159-110
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Lien: A claim against real or personal property in satisfaction of a debt.
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
Project development financing debt instruments are special obligations of the issuing unit. Moneys in the Revenue Increment Fund required by N.C. Gen. Stat. § 159-107(c) are pledged to the payment of the instruments, in accordance with N.C. Gen. Stat. § 159-107(f). Except as provided in N.C. Gen. Stat. § 159-111, the unit may pledge the following additional sources of funds to the payment of the debt instruments, and no other sources: the proceeds from the sale of property in the development financing district; net revenues from any public facilities, other than portions of public utility systems, in the development financing district financed with the proceeds of the project development financing debt instruments; and, subject to N.C. Gen. Stat. § 159-47, net revenues from any other public facilities, other than portions of public utility systems, in the development financing district constructed or improved pursuant to the development financing plan.
Except as provided in N.C. Gen. Stat. § 159-111, the principal and interest on project development financing debt instruments do not constitute a legal or equitable pledge, charge, lien, or encumbrance upon any of the unit’s property or upon any of its income, receipts, or revenues, except as may be provided pursuant to this section. Except as provided in N.C. Gen. Stat. § 159-107 and N.C. Gen. Stat. § 159-111, neither the credit nor the taxing power of the unit is pledged for the payment of the principal or interest of project development financing debt instruments, and no holder of project development financing debt instruments has the right to compel the exercise of the taxing power by the unit or the forfeiture of any of its property in connection with any default on the instruments. Unless the unit’s taxing power has been pledged pursuant to N.C. Gen. Stat. § 159-111, every project development financing debt instrument shall contain recitals sufficient to show the limited nature of the security for the instrument’s payment and that it is not secured by the full faith and credit of the unit. (2003-403, s. 2.)