2005 North Carolina Code - General Statutes § 142-95. RECOP indebtedness.

§ 142‑95.  RECOP indebtedness.

(a)       Authorization. – In addition to special indebtedness described in the preceding sections of this Article, the State may incur special indebtedness as described in this section to be called real estate certificates of participation (RECOP) indebtedness. RECOP indebtedness shall be incurred for the purposes and otherwise as prescribed in the preceding sections of this Article, with the exceptions and limitations provided in this section. All of the provisions of this Article apply to RECOP indebtedness except to the extent a provision of this section specifically conflicts with a provision in the preceding sections of this Article.

(b)       Purposes. – In addition to the purposes provided in G.S. 142‑83, RECOP indebtedness may be incurred to refund any indebtedness of the State. RECOP indebtedness may refund non‑RECOP indebtedness to the same extent it may refund RECOP indebtedness in accordance with the preceding sections of this Article, except that the General Assembly must first enact legislation authorizing the incurrence of RECOP indebtedness for this purpose up to a specific maximum amount. The proceeds of RECOP indebtedness may not be used for operating expenses, start‑up costs, or other items of working capital.

(c)       Security. – In addition to the security authorized in G.S. 142‑85(a), RECOP indebtedness may be secured by any property or interest in property of the State selected by the Director of the Budget in consultation with the State Treasurer and approved by the Council of State in accordance with this Article. Before selecting as security any property or interest in property not authorized in G.S. 142‑85, the Director of the Budget must consult with the Joint Legislative Commission on Governmental Operations. This subsection supplements G.S. 142‑85(a); all of the remaining provisions of G.S. 142‑85 apply to RECOP indebtedness.

(d)       Principal. – The entire principal amount may mature on a single date. No principal reduction is required prior to maturity.

(e)       Interest. – Interest on RECOP indebtedness may be payable partly periodically and partly at maturity or earlier redemption, in the latter case with interest accreting and compounding at a stated interest rate.

(f)        Additional State Property Law Exception. – Chapter 146 of the General Statutes does not apply to any sale of the State's interest in property securing RECOP indebtedness if the sales proceeds are used first to pay, or provide for the payment of, all or a portion of that RECOP indebtedness. The property law exceptions in G.S. 142‑85(h) also apply to RECOP indebtedness. (2004‑179, s. 7.1.)