NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

CHAPTER 690

SENATE BILL 659

AN ACT TO ALLOW HOUSING AUTHORITIES TO GIVE MORTGAGES WITHOUT GOVERNMENT SUBSIDY.

The General Assembly of North Carolina enacts:

Section 1.  Section 157-9 of the General Statutes of North Carolina is amended to remove from line 48 of the second paragraph of that section the following parenthetical phrase, "(subject to the limitations hereinafter imposed)".

Sec. 2.  Section 157-16(1) of the General Statutes of North Carolina is amended to remove from it the following parenthetical phrase, "(subject to the limitations hereinafter imposed)".

Sec. 3.  Section 157-16(25) of the General Statutes of North Carolina is amended to substitute a period for the semicolon after the word "thereof" and to remove the proviso at the end.

Sec. 4.  General Statutes Section 157-21 is rewritten to read as follows:

"§ 157-21.  Limitations on remedies of obligee. — All property of the authority shall be exempt from levy and sale by virtue of an execution, and no execution shall issue against the same. No judgment against the authority shall be a charge or lien against its property, real or personal. The provisions of this section shall not apply to or limit the right of obligees of any mortgage of the authority provided for in G.S. 157-17, after foreclosure sale thereunder, to obtain a judgment or decree for any deficiency due on the indebtedness secured thereby and to issue execution on the credit of the authority. Such deficiency judgment or decree shall be a lien and charge upon the property of the authority, which may be levied on and sold by virtue of an execution or other judicial process for the purpose of satisfying such deficiency judgment or decree."

Sec. 5.  Chapter 157 of the General Statutes is amended by adding a new section to read:

"§ 157-17.1.  Approval of mortgages by Local Government Commission. — (a) With the exception of mortgages under G.S. 157-17, no housing authority may execute any mortgage authorized by this Chapter without the approval of the Local Government Commission.

(b)        The Local Government Commission shall consider, in any application by a housing authority for approval of a mortgage, the following issues:

(1)        the value of the property, and any other secured indebtedness upon the property;

(2)        the ability of the authority to repay the indebtedness secured by the mortgage;

(3)        any other issues it deems necessary to insure the financial soundness of the housing authority.

(c)        The Local Government Commission shall adopt rules and regulations to implement this section."

Sec. 6.  If any provision of this act or the application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 7.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 29th day of May, 1979.