GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	2 

SENATE BILL 649*
Economic Development Committee Substitute Adopted 5/13/91

Short Title:  Air Cargo Airport Authority.	(Public)
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Sponsors:
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Referred to:  
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April 16, 1991

A BILL TO BE ENTITLED
AN ACT TO CREATE THE NORTH CAROLINA AIR CARGO AIRPORT AUTHORITY, TO AUTHORIZE THE ISSUANCE OF REVENUE BONDS TO FINANCE AIRPORT AND INDUSTRIAL FACILITIES, TO AUTHORIZE UNITS OF LOCAL GOVERNMENT TO TAKE CERTAIN ACTIONS RELATED TO CARGO AIRPORT COMPLEXES, AND TO MAKE CONFORMING CHANGES TO OTHER STATUTES.
The General Assembly of North Carolina enacts:
Section 1.  A new Chapter is added to the General Statutes to read:
“Chapter 159J.
"North Carolina Air Cargo Airport Authority.
"§ 159J-1.  Short title.
This Chapter is the ‘North Carolina Air Cargo Airport Authority Act.' It is enacted in part pursuant to Article V, Section 13, of the North Carolina Constitution with the intent that the body politic and corporate created by this Chapter shall have all power and authority as may be provided to it under that section of the Constitution.
"§ 159J-2.  Definitions.
The following definitions apply in this Chapter:
(1)	Aircraft. – A contrivance that is used or designed for flight.
(2)	Airport project. – Any of the following that is part of or is used in connection with a cargo airport or a facility at a cargo airport complex site and is not a special user project:
a.	Land, equipment, or buildings or other structures, whether located on one or more sites.
b.	The addition to or the rehabilitation, improvement, renovation, or enlargement of any property described in subpart a.
	The term includes infrastructure improvements, such as improvements to railroad facilities, roads, bridges, and water, sewer, or electric utilities even if not located on a cargo airport complex site. An airport project may include a facility leased to one or more entities under a true lease.
(3)	Authority. – The North Carolina Air Cargo Airport Authority.
(4)	Board. – The Board of Directors of the Authority.
(5)	Bonds. – The revenue bonds authorized to be issued by the Authority under this Chapter.
(6)	Cargo airport. – Any area of land or water that is designed for the landing and takeoff of aircraft, any appurtenant area used or suitable for airport buildings or other airport facilities, and any appurtenant right-of-way.  A cargo airport may contain facilities to shelter, service, or repair aircraft and may contain facilities to discharge and receive passengers.
(7)	Cargo airport complex. – A cargo airport and all other facilities, including private facilities, related to the cargo airport that are located within the cargo airport complex site.
(8)	Cargo airport complex site. – The area designated by the Authority as the location of a cargo airport complex.
(9)	Costs. – The capital cost of a project, including:
a.	The costs of doing any or all of the following:
1.	Acquiring, constructing, erecting, providing, developing, installing, furnishing, and equipping.
2.	Reconstructing, remodeling, altering, renovating, replacing, refurnishing, and reequipping.
3.	Enlarging, expanding, and extending.
4.	Demolishing, relocating, improving, grading, draining, landscaping, paving, widening, and resurfacing.
b.	The costs of all property, both real and personal and both improved and unimproved, and of plants, works, appurtenances, structures, facilities, furnishings, machinery, equipment, vehicles, easements, water rights, air rights, franchises, and licenses used or useful in connection with the project.
c.	The costs of demolishing or moving structures from land acquired and acquiring land to which the structures are to be moved.
d.	Financing charges, including estimated interest during the acquisition or construction of a project and for one year thereafter.
e.	The costs of services to provide plans, specifications, studies, reports, surveys, and estimates of costs and revenues.
f.	The costs of paying any interim financing, including principal, interest and premium, related to the acquisition or construction of the project.
g.	Administrative and legal expenses and administrative charges.
h.	The costs of obtaining bond and reserve fund insurance and investment contracts, of credit-enhancement facilities, liquidity facilities, and interest-rate agreements, and of establishing and maintaining debt service and other reserves.
i.	Any other services, costs, and expenses necessary or incidental to the project.
(10)	Credit facility. – An agreement by the Authority with a banking institution, an insurance institution, an investment institution, or other financial institution located inside or outside the United States of America that provides for prompt payment, whether at maturity, presentment, or tender for purchase, redemption, or acceleration, of part or all of the principal or purchase price, redemption premium, if any, and interest on a bond or note issued by the Authority and for repayment of the institution by the Authority.
(11)	Financing agreement. – A written instrument establishing the rights and responsibilities of the Authority and the operator concerning a special user project financed by the issuance of bonds.  A financing agreement may be a lease, a lease and lease-back, a sale and lease-back, a lease purchase, an installment sale and purchase agreement, a conditional sales agreement, a secured or unsecured loan agreement, or other similar contract, and may involve property in addition to the property financed with the bonds.
(12)	Local Government Commission. – The Local Government Commission of the Department of the State Treasurer, established by Article 2 of Chapter 159 of the General Statutes.
(13)	Notes. – Revenue notes or revenue bond anticipation notes issued by the Authority under this Chapter.
(14)	Obligor. – A person, including an operator, who has entered into a financing or other agreement obligating the person to make payments to the Authority or to holders of bonds issued to finance a special user project.
(15)	Operator. – The person entitled to the use or occupancy of a special user project.
(16)	Par formula. – A provision or formula to make periodic adjustments in the interest rate of a bond or note, including:
a.	A provision for an adjustment to keep the purchase price of the bond or note in the open market as close to par as possible.
b.	A provision for an adjustment based on one or more percentages of a prime rate or base rate that may vary or apply for specified periods of time.
c.	Any other provision that does not materially and adversely affect the financial position of the Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority.
(17)	Person. – Any person, corporation, partnership, association, trust, or other legal entity.
(18)	Project. – An airport project or a special user project.
(19)	Revenues. – For a special user project, the term means rents, fees, charges, payments, proceeds,  or other income or profit derived from the special user project or from the financing agreement or security document for the special user project.  For an airport project, the term means rents, fees, charges, payments, proceeds, or other income or profit derived from the airport project or from any pledge of nontax revenues or appropriation or payment made by the State or a county in which the cargo airport is located or pledge of tax revenues made by a county under G.S. 159J-13.
(20)	Security document. – One or more written instruments establishing the rights and responsibilities of the Authority and the holders of bonds issued to finance a special user project.  A security document may provide for, or be in the form of an agreement with, a trustee for the benefit of the  bondholders.  A security document may contain an assignment, pledge, mortgage, or other encumbrance of part or all of the Authority's interest in, or right to receive revenues from, a special user project or any other property provided by the operator or other obligor under a financing agreement.  A financing agreement and a security document may be combined as one instrument.
(21)	Special user project. – Any land, equipment, or buildings or other structures located on one or more sites within a cargo airport complex site and the addition to or the rehabilitation, improvement, renovation, or enlargement of a structure located within a cargo airport complex site when the property is to be used as or in connection with any of the following:
a.	An undertaking for industry, including an industrial or a manufacturing factory, mill, assembly plant, or fabricating plant, a freight terminal, an industrial research, development, or laboratory facility, an industrial processing or distribution facility for industrial or manufactured products;
b.	A commercial, processing, mining, transportation, distribution, storage, marine, aviation, or environmental facility or improvement; or
c.	Any combination of items mentioned subparts a. and b;
	provided such special user project, during its economic life, is to be principally used by one or more for-profit entities other than as lessee under a true lease.
	A special user project may include all appurtenances and incidental facilities such as land, a headquarters or office facility, warehouses, distribution centers, access roads, sidewalks, utilities, railway sidings, trucking and similar facilities, parking facilities, waterways, docks, wharves, and other improvements necessary or convenient for the construction, maintenance, and operation of any structure.
(22)	True lease. – A lease which has a fair market value rental and is nor treated as a financing lease or installment sale for federal tax law purposes.
"§ 159J-3.  Creation of Authority; members.
(a)	Creation.  There is created the North Carolina Air Cargo Airport Authority which shall be a body corporate and politic having the powers and jurisdiction as provided under this Chapter and other additional powers as may be conferred upon the Authority by further acts of the General Assembly.  The Authority shall be a public agency and an instrumentality of the State for the performance of essential governmental and public functions.
(b)	Board of Directors. The Board of Directors of the Authority shall be its governing board, which shall consist of not less than 14 members.  Seven members shall be appointed by the Governor; two members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S.120-121; two members shall be appointed by the General Assembly upon the recommendation of the President of the Senate in accordance with G.S.120-121; and two members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S.120-121; the State Treasurer shall serve as an ex officio voting member; and within 90 days after the acquisition of land by the Authority for development as part of a cargo airport complex site, either by purchase or condemnation, the board of county commissioners in any county in which a portion of the land is located may, by a majority vote of those commissioners in attendance, appoint one member to serve on the Authority.
(c)	Terms.  Appointments to the Board of Directors shall be for the terms set forth as follows:
(1)	Appointments made by the Governor shall be for a term of four years, with the terms of three initial appointees ending on December 31, 1994, and the terms of four initial appointees ending on December 31, 1995.
(2)	Appointments made by the General Assembly upon the recommendation of the Speaker of the House of Representatives, the President of the Senate, or the President Pro Tempore of the Senate shall be made in accordance with G.S. 120-121 for a term of four years, with the term of one initial appointee recommended by each officer ending on December 31, 1994, and the terms for the other initial appointee recommended by each officer ending on December 31, 1995.
(3)	Appointments made by the boards of county commissioners shall be for a term of four years, initially ending on the second December 31 occurring after such appointment.
(d)	Chair and Vice-chair of the Board. The Governor shall designate one of his appointees as the Chair of the Board. The Governor shall convene the first meeting, at which time the members of the Board shall elect from their membership a Vice-chair of the Authority.
(e)	Composition of the Board. After selecting the Chair, the remaining members of the Board appointed by the Governor shall be selected from the State at large and shall represent the geographical regions of the State as follows: two shall represent the western region of the State, two shall represent the piedmont region of the State, and two shall represent the eastern region of the State. In addition, the members appointed by the Governor shall be representative of business, agribusiness, and industrial interests of the State.
(f)	Vacancies. All members of the Board shall remain in office until their successors are appointed and qualify.  Vacancies in appointments made by the Governor or a board of county commissioners shall be filled by the Governor or the county commissioners for the remainder of the unexpired terms.  Vacancies in appointments made by the General Assembly upon the recommendation of the Speaker of the House of Representatives, the President of the Senate, or the President Pro Tempore of the Senate shall be filled in accordance with G.S. 120-122.  Persons appointed to fill vacancies shall qualify in the same manner as persons appointed for full terms.
(g)	Removal of Board Members. Any member of the Board may be removed from office for misfeasance, malfeasance, nonfeasance, or improper influence in accordance with the provisions of G.S. 143B-13, and the resulting vacancy shall be filled as provided by subsection (f) of this section.
(h)	Organization of the Board. The Board shall adopt bylaws with respect to the calling of meetings, quorums, voting procedures, the keeping of records, and other organizational and administrative matters as the Board may determine.  A quorum shall consist of no less than seven members of the Board. No vacancy in the membership of the Board shall impair the right of a quorum to exercise all rights and to perform all the duties of the Board and the Authority.
(i)	Compensation of the Board. No part of the revenues or assets of the Authority shall inure to the benefit of or be distributable to the members of the Board or officers or other private persons.  The members of the Board shall receive no salary for their services but shall be entitled to receive per diem and allowances in accordance with the provisions of G.S. 138-5.
(j)	Treasurer. The Board shall select the Authority's treasurer. The Board shall require a surety bond of the appointee in the amount as the Board may fix, and the premium shall be paid by the Authority as a necessary expense of the Authority.
(k)	Executive Director and other Employees. The Board shall appoint an executive director, whose salary shall be fixed by the Board, to serve at its pleasure. The executive director or his designee shall appoint, employ, dismiss and, within the limits of available funding, fix the compensation of other employees as he deems necessary.
(l)	Office. The Board shall establish an office for the transaction of the Authority's business at the place as, in the opinion of the Board, shall be advisable or necessary to implement the provisions of this Chapter.
"§ 159J-4.  Powers of the Authority.
(a)	The Authority shall have all of the powers necessary to execute the provisions of this Chapter, which shall include at least the following powers:
(1)	To sue and be sued, to make contracts, and to adopt and use a common seal and alter the seal as necessary;
(2)	To establish, finance, purchase, construct, operate, and regulate cargo airport complexes and to own, finance, lease, sell, or manage real or personal property;
(3)	To charge and collect fees and rents for the use of the cargo airport complexes or for services rendered in the operation of the complexes;
(4)	To contract and enter into agreements with the State, local government, other authorities of North Carolina, and other states for the interchange of business and to facilitate the business of cargo airport complexes;
(5)	To rent, lease, purchase, acquire, mortgage, encumber, or dispose of real or personal property, including the power of eminent domain to be exercised without review or concurrence by the Council of State;
(6)	To establish, construct, purchase, maintain, equip, and operate any structure or facilities to aid commerce associated with a cargo airport complex, including the construction of highways, bridges, shipping facilities, electronic cargo transfer systems, mass transit systems, and other transportation facilities;
(7)	To create and operate the agencies and departments as necessary for the furtherance of any of the provisions of this Chapter;
(8)	To pay all necessary costs and expenses in the formation, organization, administration, and operation of the Authority;
(9)	To apply for, accept, and administer loans and grants of money from any federal agency, the State or its political subdivisions or from any public or private sources available; to expend the money in accordance with the requirements imposed by the federal agency, the State or its political subdivisions, or any public or private lender or donor; to give evidences of indebtedness as shall be required, provided, that no indebtedness of any kind incurred or created by the Authority shall constitute an indebtedness of the State or its political subdivisions, and no such indebtedness shall involve or be secured by the faith, credit or taxing power of the State or its political subdivisions except indirectly as permitted by G.S. 159J-13;
(10)	To adopt, alter, or repeal its own bylaws or rules implementing the provisions of this Chapter;
(11)	To execute financing agreements, security documents, and other instruments necessary in the exercise of the Authority under this Chapter;
(12)	To fix, charge, collect, pledge, or assign revenues of the Authority;
(13)	To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and other consultants and employees as may be required in the judgment of the Board and to fix and pay their compensation from funds available to the Authority and to select and retain the financial consultants, underwriters, and bond attorneys to be associated with the issuance of any bonds and to pay for services rendered by underwriters, financial consultants, or bond attorneys out of the proceeds of any issue with regard to which the services were performed;
(14)	To issue revenue bonds or notes of the Authority as provided under this Chapter to pay the cost of the acquisition, construction, reconstruction, improvement, extension, enlargement, operation, or equipping of projects;
(15)	To issue revenue refunding bonds of the Authority as provided under this Chapter;
(16)	To provide for the defense of civil and criminal actions and to pay civil judgments against employees, officers, former employees or officers, and members or former members of the Board as authorized by G.S. 160A-167;
(17)	To purchase real or personal property as provided by G.S. 160A-20;
(18)	To procure and maintain adequate insurance or otherwise provide for the adequate protection to indemnify and save harmless the Authority and its officers, agents, employees, adjoining property owners, or the general public against loss or liability resulting from any act or omission by or on behalf of the Authority;
(19)	To enter into agreements with counties pursuant to G.S. 159J-13 and enforce pledges of payments made pursuant to that agreement;
(20)	To exercise the powers granted political subdivisions under Article 4, Chapter 63 of the General Statutes and to exercise the powers granted to counties or municipalities under Article 6, Chapter 63 of the General Statutes governing public airports and related facilities;
(21)	To act as agent for the United States of America or any agency, department, corporation, or instrumentality thereof.
(22)	To enter into agreements and contracts with units of local government pursuant to, and exercise all powers of a unit of local government derived from, Part 1 of Article 20 of Chapter 160A of the General Statutes.
(23)	With the approval of any unit of local government, to use officers, employees, agents, and facilities of the unit of local government for the purposes and upon the terms as may be mutually agreeable; and
(24)	To do all acts necessary to carry out the provisions of this Chapter.
(b)	To execute the powers provided in subsection (a) of this section, the Board shall determine the policies of the Authority by majority vote of all members of the Board present and voting.  Once a policy is determined, the Board shall communicate it to the executive director, who shall have the sole and exclusive authority to execute the policy of the Authority.  No member of the Board shall have the responsibility or authority to give operational directives to any employee of the Authority other than the executive director.
"§ 159J-5.  Acquisition of property; exchange.
The Authority may acquire property by purchase, negotiation, gift, devise, or by eminent domain. To exercise the right of eminent domain, proceedings shall be maintained by and in the name of the Authority.  The Authority may proceed in the manner provided by the general laws of the State for the procedure by any county, municipality, or authority organized under the laws of this State, or by the Board of Transportation, or in any other manner provided by law, as the Authority may, in its discretion, elect.  The Authority's power of eminent domain shall apply to property of persons, State agencies, or units of local government already devoted to public use.  Transfer of land owned by the State shall not be subject to review or approval by the Governor or Council of State, and the Secretary of the Department of Administration shall execute and deliver a deed transferring fee simple title for the property to the Authority.
The Authority may exchange any property acquired under the authority of this Chapter for other property usable in carrying out the powers conferred on the Authority and also may remove from lands needed for its purposes and reconstruct on other locations, buildings, terminals, or other structures, upon the payment of just compensation, if in its judgment, it is necessary or expedient so to do in order to carry out any of its plans for development, under the authorization of this Chapter.
"§ 159J-6.  Police power.
(a)	The Authority has jurisdiction within a cargo airport complex site.  The Board may adopt ordinances regulating traffic and parking within the cargo airport complex site and for the safety and welfare of those using the cargo airport complex. An ordinance adopted under this subsection shall be recorded in the minutes of Board.  A copy of the ordinance shall be filed in the office of the Attorney General of North Carolina and  shall be posted at appropriate places in the cargo airport complex site.  Any person who violates an ordinance of the Authority is guilty of a misdemeanor and is punishable by a fine of up to fifty dollars ($50.00) or imprisonment for up to 30 days.
(b)	The executive director of the Authority may designate employees of the Authority as special police officers.  A person designated as a special police officer has jurisdiction within the cargo airport complex site to arrest a person who violates any federal or State law or any ordinance of the Authority and has other powers to the same extent as police officers of incorporated municipalities. An employee designated as a special police officer shall take the oath of a law enforcement officer set out in G.S. 11-11.
"§ 159J-7. Authority funds.
All Authority funds shall be deposited in a bank to be designated by the Board.  Funds of the Authority shall be paid out only upon warrants signed by the treasurer or assistant treasurer of the Authority and countersigned by the chair, the acting chair, or the executive director.  No warrants shall be drawn or issued disbursing any of the funds of the Authority except for a purpose authorized by this Chapter and only when the account or expenditure has been audited and approved by the Authority or its executive director.
"§ 159J-8.  Bonds.
(a)	The Authority may provide for the issuance, at one time or from time to time, of bonds and notes, including bond anticipation notes and renewal notes, of the Authority to carry out its corporate purposes including financing the costs of projects. The principal of and interest on the bonds or notes shall be payable solely from funds provided under this Chapter for their payment.  A bond anticipation note may be made payable from the proceeds of bonds or renewal notes or, in the event bond or renewal note proceeds are not available, from any available Authority revenues or other funds provided for this purpose.  Bonds and notes may also be paid from the proceeds of any credit facility.
The bonds and notes of each issue shall be dated and may be made redeemable prior to maturity at the option of the Authority or otherwise, at one or more prices, on one or more dates, and upon the terms and conditions set by the Authority.  The bonds or notes may also be made payable from time to time on demand or tender for purchase by the owner upon terms and conditions set by the Authority.
A bond or note shall bear interest at a rate or rates, including variable rates, as determined by the Local Government Commission with the approval of the Authority.  A bond or note may be secured by a reserve fund created for that purpose and funded from proceeds of the bond or note, revenues, or any other source of funds available to the Authority.
(b)	In fixing the details of bonds or notes, the Authority may provide that the bonds or notes may:
(1)	Be payable from time to time on demand or tender for purchase by the owner of the bond or note if a credit facility supports the bond or note, unless the Local Government Commission specifically determines that a credit facility is not required because the absence of a credit facility will not materially and adversely affect the financial position of the Authority and the marketing of the bonds or notes at a reasonable interest cost to the Authority
(2)	Be additionally supported by a credit facility.
(3)	If the bonds or notes are issued to finance an airport project, be additionally supported by a pledge of any agreement entered into pursuant to G.S. 159J-13.
(4)	Be made subject to redemption or a mandatory tender for purchase prior to maturity.
(5)	Be capital appreciation bonds.
(6)	Bear interest at a rate or rates that may vary, including variations permitted pursuant to a par formula.
(7)	Be made the subject of a remarketing agreement whereby an attempt is made to remarket the bonds or notes to new purchasers prior to their presentment for payment to the provider of the credit facility or to the Authority.
(c)	Notes and bonds shall mature at the times determined by the Authority, not to exceed 40 years from the date of issue.  The Authority shall determine the form and manner of execution of a bond or note, including any interest coupons to be attached to the bond or note.  The Authority shall fix the denominations and places of payment of principal and interest of the bond or note.  The principal of and interest on a bond or note may be paid at any bank or trust company, whether located inside or outside the United States of America.
(d)	The validity of a bond, note, or coupon that has the signature or facsimile signature of a person who was an officer when the bond, note, or coupon was signed or the facsimile signature attached but who is not that officer when the bond, note, or coupon is delivered is not affected by the change in officers.  A bond, note, or coupon may bear the signature or facsimile signature of a person who will be the proper officer to sign the bond, note, or coupon when it is executed but who is not the officer on the date of the bond, note, or coupon.
(e)	The Authority may provide for any of the following:
(1)	Authentication of a bond or note by a trustee or other authenticating agent.
(2)	Issuance of a bond or note as a certificated obligation, an uncertificated obligation, or both.
(3)	Issuance of a bond or note in coupon form, in registered form, or both.
(4)	Registration of a coupon bond or note as to principal alone or as to both principal and interest.
(5)	The reconversion of a bond or note registered as to both principal and interest into a coupon bond or note.
(6)	The interchange of registered and coupon bonds or notes.
(7)	A system for registration.
(8)	Replacement of a bond or note that has been mutilated, lost, or destroyed.
(f)	The Authority may not issue a bond or note under this Chapter unless its issuance is approved by the Local Government Commission, and it is sold by the Local Government Commission.  To obtain approval of a bond or note, the Authority shall file an application for approval with the Local Government Commission.  The application shall contain the information required by the Local Government Commission.
In determining whether to approve a proposed bond or note issue of the Authority, the Local Government Commission shall consider the criteria in G.S. 159-52, the criteria in G.S. 159-86, and the effect of the proposed financing upon any proposed or scheduled sale of obligations by the State, another State agency, or a unit of local government.  The Local Government Commission shall approve the proposed bond or note issue if it determines that the proposed financing for the issue meets the criteria and will effect the purposes of this Chapter.
When the Local Government Commission approves a bond or note issue of the Authority, the Authority may submit a written request to the Local Government Commission to sell the approved bonds or notes.  Upon receiving a written request, the Local Government Commission shall consult with the Authority on the manner in which the bonds or notes will be sold and the price or prices at which the bonds or notes will be sold.  With the approval of the Authority, the Local Government Commission shall sell the bonds or notes either at public or private sale in the manner and at the prices determined to be in the best interest of the Authority and to effect the purposes of this Chapter.
Bonds or notes may be issued under the provisions of this Chapter without obtaining, except as otherwise expressly provided in this Chapter, the consent of any department, division, commission, board, body, bureau, or agency of the State or without any other proceedings or conditions except as specifically authorized by this Chapter or by the provisions of the resolution authorizing the issuance of, or any trust agreement securing, the bonds or notes.
(g)	Each bond or note that is represented by an instrument shall contain a statement signed by the Secretary of the Local Government Commission, or an assistant designated by the Secretary, certifying that the issuance of the bond or note has been approved under this Chapter.  The signature may be a manual signature or a facsimile signature, as determined by the Local Government Commission.  Each bond or note that is not represented by an instrument shall be evidenced by a writing relating to the obligation that identifies the obligation or the issue of which it is a part, contains the signed statement certifying approval of the Local Government Commission that is required on an instrument, and is filed  with the Local Government Commission.  A certification of approval by the Local Government Commission is conclusive evidence that a bond or note complies with this Chapter.
(h)	The proceeds of a bond or note shall be used solely for the purposes for which the bond or note was issued and shall be disbursed in accordance with the resolution authorizing the issuance of the bond or note and with any trust agreement securing the bond or note.
(i)	Prior to the preparation of definitive bonds, the Authority may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery.
(j)	The Authority may secure a bond or note issued under this Chapter by a trust agreement between the Authority and a corporate trustee.  The corporate trustee may be any trust company or bank having the powers of a trust company inside or outside the State.  The Authority may secure a bond or note issued under this Chapter by a deed of trust.  The trustee of the deed of trust may be an individual who is a resident of the State.  A bank or trust company that is incorporated in this State and is a depository of the proceeds of obligations, revenues, or other money of an Authority may furnish indemnifying bonds or pledge securities required by the Authority.
The pledge of any assets, income, or revenues of the Authority to the payment of the principal of or the interest on any obligations of the Authority is binding from the time the pledge is made, and any assets, income, or revenues of the Authority are immediately subject to the lien of the pledge without any physical delivery or other act.  The lien created by a pledge is binding against all persons who have claims of any kind against the Authority, regardless of whether they have notice of the lien.
(k)	A resolution authorizing the issuance of a bond or note and a trust agreement securing a bond or note may provide that any moneys held under the resolution or trust agreement may be temporarily invested pending disbursement.  Any officer with whom, or any bank or trust company with which, the moneys are deposited is considered a trustee of the moneys and must hold and apply the moneys for their stated purpose in accordance with this Chapter and the resolution or trust agreement.  The Authority may invest any moneys, other than the proceeds of bonds issued to finance special user projects, as provided in this subsection or G.S. 159-30.  The proceeds of bonds issued to finance special user projects may be invested as provided in the security document for the bonds.
In connection with or incidental to the acquisition or carrying of any investment relating to bonds, program of investment relating to bonds, or carrying of bonds, the Authority may  enter into a contract to place the investment or obligation of the Authority, as represented by the bonds, investment, or program of investment and the contract or contracts, in whole or in part, on an interest rate, currency, cash-flow, or other basis, including the following:
(1)	Interest rate swap agreements, currency swap agreements, insurance agreements, forward payment conversion agreements, and futures.
(2)	Contracts providing for payments based on levels of, or changes in, interest rates, currency exchange rates, or stock or other indices.
(3)	Contracts to exchange cash flows or a series of payments.
(4)	Contracts to hedge payment, currency, rate, spread, or similar exposure, including interest rate floors or caps, options, puts, and calls.
The Authority may enter a contract of this type in connection with, or incidental to, entering into or maintaining any agreement that secures bonds.  A contract shall contain the payment, security, term, default, remedy, and other terms and conditions the Board considers appropriate.   The Authority may enter a contract of this type with any person after giving due consideration, where applicable, of the person's creditworthiness as determined by a rating by a nationally recognized rating agency or any other criteria the Board deems appropriate.  In connection with, or incidental to, the issuance or carrying of bonds, or entering into any of the contracts described in this subsection, the Authority may enter into credit enhancement or liquidity agreements, with payment, interest rate, termination date, currency, security, default, remedy, and other terms and conditions as the Authority determines.  Proceeds of bonds and any moneys set aside and pledged to secure payment of bonds or any of the contracts entered into pursuant to this subsection may be pledged to and used to service any of the contracts entered into pursuant to this section.
(l)	A bond or note issued by the Authority, interest paid on the bond or note, the transfer of the bond or note, and the income therefrom shall at all times be exempt from all taxes imposed by the State or a political subdivision of the State, except inheritance or gift taxes.
(m)	Bonds or notes issued under this Chapter shall not constitute a debt secured by a pledge of the faith and credit of the State or a political subdivision of the State and shall be payable solely from the revenues, income, or assets of the Authority that are pledged for their payment.  The face of each bond or note issued shall contain a statement that the Authority is obligated to pay the bond or note or the interest on the bond or note only from the revenues, income, or assets pledged in payment of the bond or note and that neither the faith and credit nor the taxing power of the State or any political subdivision of the State is pledged in payment of the principal of or the interest on the bond or note.  This subsection does not apply to bonds or notes for which a county has pledged its taxing power under G.S. 159J-13.
(n)	The State pledges to the holder of a bond or note issued under this Chapter that, as long as the bond or note is outstanding and unpaid, the State will not limit or alter the power the Authority had when the bond or note was issued in a way that impairs the ability of the Authority to produce revenues sufficient with other available funds to do all of the following:
(1)	Maintain and operate the project for which the bond or note was issued.
(2)	Pay the principal of, interest on, and redemption premium, if any, of the  bond or note.
(3)	Fulfill the terms of an agreement with the holder.
The State further pledges to the holder of a bond or note issued under this Chapter that the State will not impair the rights and remedies of the holder concerning the bond or note.
(o)	Obligations issued under the provisions of this Chapter are made securities in which all public offices and public bodies of the State and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. The obligations are made securities which may properly and legally be deposited with and received by any State or municipal officer or any agency or political subdivision of the State for any purpose for which the deposit of bonds, notes, or obligations of the State is now or may be authorized by law.
"§ 159J-9.  Refunding bonds or notes.
(a)	Refunding Bonds. –  The Authority may issue refunding bonds or notes for the purpose of refunding any outstanding bonds or notes issued under this Chapter, including any redemption premium on the bonds or notes and any interest accrued or to accrue to the date of redemption.  Refunding bonds or notes shall be issued in accordance with the same procedures and requirements as bonds or notes.  Refunding bonds or notes may be sold or exchanged for outstanding bonds and notes issued under this Chapter.
Refunding bonds or notes may have different interest rates and maturities than the bonds or notes being refunded.  The proceeds of refunding bonds or notes may be applied to any of the following:
(1)	The payment, purchase, and retirement of the bonds or notes being refunded by direct application to the payment, purchase, and retirement.
(2)	The payment, purchase, and retirement of the bonds or notes being refunded by the deposit in trust of the proceeds.
(3)	The payment of any expenses incurred in connection with the refunding.
(4)	For any other uses not inconsistent with the refunding.
(b)	Refunding Proceeds. –  The proceedings providing for the issuance of refunding bonds or notes may limit the investments in which the proceeds of a particular refunding issue may be invested.  Unless prohibited by the proceedings, the proceeds of refunding bonds or notes that are deposited in trust for the payment, purchase, and retirement of outstanding bonds or notes may be invested in any of the following:
(1)	Direct obligations of the United States of America.
(2)	Obligations the principal and interest on which are guaranteed by the United States of America.
(3)	Evidences of ownership of a proportionate interest in an obligation that is described in subdivisions (1) or (2) of this subsection and is held in a custodial capacity by a bank or trust company organized under the laws of the United States of America or a state.
(4)	Obligations of the State or a unit of local government of the State when payment of the principal of and interest on the obligations has been provided for by depositing with a trustee or other escrow agent obligations that meet all of the following:
a.	Are described in subdivisions (1), (2), or (3) of this subsection.
b.	When due and payable, will provide enough money when added to any other money held in trust for this purpose to pay the principal of, premium, if any, and interest on the State or local obligations.
c.	Are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, Inc.
(5)	Obligations of the State or a unit of local government when payment of the principal and interest on the obligations is insured by a bond insurance company rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, Inc.
(6)	Full faith and credit obligations of the State or a unit of local government of the State that are rated in the highest category by Standard & Poor's Corporation and Moody's Investors Service, Inc.
(7)	Any obligations or investments in which the State Treasurer is then authorized to invest funds of the State.
(c)	This section does not limit any of the following:
(1)	The period for which the proceeds of refunding bonds or notes may be held in trust to retire the bonds or notes that are being refunded and have not matured, are not redeemable or, if redeemable, have not been called for redemption.
(2)	The power to issue bonds or notes for the combined purpose of refunding outstanding bonds or notes and of providing funds for any other corporate purpose.
"§ 159J-10. Special user project bonds.
(a)	The Authority may also, subject to the provisions of this section, issue, at one time or from time to time, bonds and notes to finance or refinance special user projects.
(b)	Bonds and notes may be sold to finance or refinance special user projects irrespective of the interest limitations set forth in G.S. 24-1.1.
(c)	The bonds or notes of each issue of the Authority under this section shall be special, limited obligations of the Authority payable solely from such other revenues, income or assets of the Authority as the Authority shall specifically assign or pledge and the funds, collateral, and undertakings as any private parties may assign or pledge.
(d)	Bonds and notes issued under the provisions of this section may be secured by one or more agreements, including forecloseable deeds of trust and other trust instruments, which may pledge and assign to the trustee or the holders of its obligations the assets, revenues, and income provided for the security of the bonds or notes, including proceeds from the sale of any special user project or part thereof, insurance proceeds and condemnation awards, and third-party agreements, and may convey or mortgage the project and other property and collateral to secure a bond issue.
The Authority may subordinate the bonds or notes or its rights, assets, revenues, and income derived from any special user project to any prior, contemporaneous or future securities or obligations or lien, mortgage, or other security interest.
(e)	Notwithstanding any other provision of law, the Authority may agree that all contracts relating to the acquisition, construction, installation, and equipping of the special user project shall be solicited, negotiated, awarded, and executed by the private parties for which the Authority is financing the special user project or any agents of the private parties subject only to approval by the Authority as the Authority may require.  The Authority may, out of the proceeds of bonds or notes, make advances to or reimburse the private parties or their agents for all or a portion of the costs incurred in connection with the contracts.
(f)	The provisions of G.S. 25-9-104(e) and G.S. 25-9-302(6) to the contrary notwithstanding, the provisions of Article 9 of the North Carolina Uniform Commercial Code, G.S. 25-9-101 to G.S. 25-6-607 inclusive, shall apply to transactions under this section, but not to transactions involving the issuance of bonds for airport projects, to the same extent the provisions of Article 9 would apply were G.S. 25-9-104(e) and G.S. 25-9-302(6) repealed.
(g)	If the Authority is required by federal tax law to obtain allocation of the unified volume limitation on private activity bonds with respect to any bonds issued under this Chapter, the Authority shall apply to the North Carolina Federal Tax Reform Allocation Committee for the allocation.  In the event the Authority makes the application on or before October 1 of a calendar year, the Committee shall allocate a portion of the unified volume limitation for private activity bonds to the Authority for the bonds, but only to the extent the volume limitation remains available at the time the application is received by the Committee.  If application for such allocation is made after October 1 of any year, the Committee shall consider it for approval in accordance with its rules then in effect.
(h)	To the extent that federal tax law requires public hearings to be held with respect to the issuance of bonds to finance special user projects, the hearings may be called for by the executive director and held before one or more members of the Board of the Authority.  The hearings may be held at any place within the State pursuant to public notice given in accordance with current federal tax regulations.  To the extent federal tax law requires approval following the hearing of the issuance of bonds to finance a special user project, the approval shall be sought from the Governor following a report to the Governor of the results of the public hearing accompanied by information relating to the purposes for the proposed bond issue.
"§ 159J-11.  Financing agreements.
Every financing agreement shall provide that:
(1)	The amounts payable under the financing agreement shall be sufficient to pay all of the principal of and redemption premium, if any, and interest on the bonds that shall be issued by the Authority to pay the cost of the special user project as the same shall respectively become due;
(2)	The operator shall pay all costs incurred by the Authority in connection with the financing and administration of the special user project, except as may be paid out of the proceeds of bonds or otherwise, including, but without limitation, insurance costs, the cost of administering the financing agreement and the security document and the fees and expenses of the fiscal agent or trustee, paying agents, attorneys, consultants, and others;
(3)	The operator shall pay all the costs and expenses of operation, maintenance, and upkeep of the special user project; and
(4)	The operator's obligation to provide for the payment of the bonds in full shall not be subject to cancellation, termination, or abatement until such payment of the bonds or provision therefor shall be made.
The financing agreement, if in the nature of a lease agreement, shall either provide that the obligor shall have an option to purchase, or require that the obligor purchase, the special user project upon the expiration or termination of the financing agreement subject to the condition that payment in full of the principal of, and the interest and any redemption premium on, the bonds, or provision therefor, shall have been made.
The financing agreement may provide the Authority with rights and remedies in the event of a default by the obligor including, without limitation, any one or more of the following:
(1)	Acceleration of all amounts payable under the financing agreement;
(2)	Reentry and repossession of the special user project;
(3)	Termination of the financing agreement;
(4)	Leasing or sale of foreclosure of the special user project to others; and
(5)	Taking whatever actions at law or in equity may appear necessary or desirable to collect the amounts payable under, and to enforce covenants made in, the financing agreement.
The Authority's interest in a special user project under a financing agreement may be that of owner, lessor, lessee, conditional or installment vendor, mortgagor, mortgagee, secured party, or otherwise, but the Authority need not have any ownership or possessory interest in the special user project.
The Authority may assign all or any of its rights and remedies under the financing agreement to the trustee or the bondholders under a security document.
Any such financing agreement may contain such additional provisions as in the determination of the Board are necessary or convenient to effectuate the purposes of this Chapter.
"§ 159J-12.  Security documents.
Bonds issued under the provisions of this Chapter may be secured by a security document which may be a trust instrument between the Authority and a bank or trust company or individual within the State, or a bank or a trust company outside the State, as trustee.  The security document may pledge and assign the revenues provided for the security of the bonds, including proceeds from the sale of any project, or part thereof, insurance proceeds and condemnation awards, and may convey or mortgage the project and other property to secure a bond issue.
The revenues and other funds derived from the project, except for any part as may be necessary to provide reserves therefor, if any, may be set aside at such regular intervals as may be provided in such security document in a sinking fund which may be 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 provided.  The pledge shall be valid and binding from the time when the pledge is made.  The revenues so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority, irrespective of whether such parties have notice.  The use and disposition of money to the credit of such sinking fund shall be subject to the provisions of the security document.  The security document may contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including, without limitation, any one or more of the following:
(1)	Acceleration of all amounts payable under the security document;
(2)	Appointment of a receiver to manage the project and any other property mortgaged or assigned as security for the bonds;
(3)	Foreclosure and sale of the project and any other property mortgaged or assigned as security for the bonds; and
(4)	Rights to bring and maintain such other actions at law or in equity as may appear necessary or desirable to collect the amounts payable under, or to enforce the covenants made in, the security document.
It shall be lawful for any bank or trust company incorporated under the laws of this State which may act as depository of the proceeds of bonds, revenues, or other funds provided under this Chapter to furnish indemnifying bonds or to pledge securities as may be required by the Authority.  All expenses incurred in carrying out the provisions of such security document may be treated as a part of the cost of the project in connection with which bonds are issued or as an expense of administration of such project.
The Authority may subordinate the bonds or its rights under the financing agreement or otherwise to any prior, contemporaneous, or future securities or obligations or lien, mortgage, or other security interest.
"§ 159J-13.  County agreements.
(a)	Any county in which all or part of a cargo airport complex site is located may enter into an agreement with the Authority providing for payments to be made by such county to the Authority in respect of benefits accruing to the county from the location of the cargo airport complex site within the county.  The county's obligations under any agreement shall not constitute a pledge of its faith and credit, except pursuant to subsections (b) or (c) of this section.
(b)	Payments made by a county to the Authority pursuant to agreements entered into under subsection (a) of this section may be secured by a pledge of receipts of the exercise of the county's taxing power if the requirements of this subsection are met.
(b1)	Any county may covenant with the Authority for the payment of amounts due under agreements permitted by subsection (a) of this section whereby the county agrees to:
(1)	Levy for the life of the agreement an annual property tax not in excess of the rate set forth in the question submitted to voters as hereinafter provided, the levy to be based upon the operating supplement requirement, as defined in this subsection; or
(2)	Levy for the life of the agreement in respect of which the tax is being levied an annual property tax not in excess of the rate required to pay the principal of and the interest on the aggregate principal amount of revenue bonds set forth in the question submitted to the voters as hereinafter provided, the levy to be based upon the debt service reserve supplement requirement, as defined in this subsection.
(b2)	When any such covenant has been made or any such agreement has been entered into, the county shall determine by not later than June 1 of each fiscal year the amount required, determined as hereinafter provided, to be raised by taxation by such county in the next fiscal year.  The county is obligated to levy the tax only to the extent that an operating supplement requirement or a debt service reserve supplement requirement shall occur during the fiscal year preceding the fiscal year in which the tax is to be levied.  In no event shall the county be required to levy a tax in excess of the rate required to be levied in accordance with the approval of the voters as provided in subsection (b3) of this section.  When any such tax is to be levied, the county shall include in its budget ordinance an appropriation equal to the estimated yield of the tax levy, and shall pay the appropriation to the Authority or transfer moneys to the appropriate fund in equal monthly installments unless another mutually satisfactory schedule of payments is agreed upon.
(b3)	A covenant made, or the pledge of an agreement entered into, by a county pursuant to this subsection shall be effected by the provisions of the agreement permitted pursuant to subsection (a) of this section.
A covenant made, or agreement entered into, by a county pursuant to this subsection shall take effect only if approved by the affirmative vote of a majority of those who vote in a referendum held in the county.  The referendum shall be called and held as provided in G.S. 159-61, except that:
(1)	The ballot proposition shall be in substantially one of the following forms:
	Operating Supplement Requirement:
		‘Shall the agreement binding the county to levy annually a tax on property not in excess of ............... cents on the one hundred dollars ($100.00) value of property subject to taxation for the purpose of supplementing the revenues of the Authority in instances where the gross revenues of an airport project are estimated to be less than the estimated total costs of the (i) current operating expenses of the project, (ii) amount required to maintain the debt service reserve by repaying any withdrawals in respect of all outstanding bonds issued in connection with the project and (iii) debt service on all outstanding bonds issued in connection with the project, all as defined in such agreement, the proceeds of such tax to be used for the payment of the current operating expenses of the project so long as any revenue bonds issued remain outstanding and unpaid be approved?
[ ] Yes
[ ] No'
	Debt  Service Reserve Supplement Requirement:
		‘Shall the agreement binding the county to levy annually, without limitation as to rate or amount, a tax on property subject to taxation for the purpose of supplementing the revenues of the Authority for maintaining the debt service reserve required by said agreement in connection with the issuance of not in excess of $.............. revenue bonds of the Authority to finance an airport project so long as any of such revenue bonds remain outstanding and unpaid, be approved?
[ ] Yes
[ ] No'
	and
(2)	The published statement of result shall have the following statement appended:
		‘Any action or proceeding challenging the regularity or validity of this supplemental tax referendum must be begun within 30 days after  the date of publication.
........................
(title of governing board.)'
(b4)	Any action or proceeding in any court to set aside a supplemental tax referendum held under this section, or to obtain any other relief upon the ground that the referendum is invalid or was irregularly conducted, must be begun within 30 days after the publication of the statement of the result of the referendum.  After the expiration of this period of limitation, no right of action or defense based upon the invalidity of or any irregularity in the referendum shall be asserted, nor shall the validity of the referendum be open to question in any court upon any ground whatever, except in an action or proceeding begun within the period of limitation prescribed in this subsection.
(b5)	An order or agreement submitted to and approved by the voters pursuant to this section may be repealed at any time before bonds are issued pursuant thereto.
(b6)	For the purposes of this section:
(1)	An ‘operating supplement requirement' occurs when, as set forth in the budget prepared by the Authority, the estimated cost in the next succeeding fiscal year of the (i) current operating expenses of the relevant airport project, (ii) amount required to maintain the debt service reserve by repaying any withdrawals therefrom in respect of all outstanding bonds issued in connection with the relevant airport project, and (iii) debt service on all outstanding bonds issued in connection with the relevant airport project are in excess of the pledged revenues of the project for the fiscal year as estimated by the Authority, excluding taxes levied pursuant to this subsection; provided, however, that the amount of the operating supplement requirement shall not exceed the total amount of the current operating expenses of the project; and
(2)	A ‘debt service reserve supplement requirement' occurs when there have been withdrawn from the debt service reserve any moneys for the purpose of paying debt service on the bonds in respect of which the supplemental tax has been authorized by the voters; provided, however, that the amount of the debt service reserve supplement requirement shall not exceed the amount so withdrawn.
(b7)	Any covenant or agreement of a county made pursuant to this section, and the obligations assumed thereby, shall be excludable from the gross debt of the county for purposes of the statement of debt mentioned in G.S. 159-55.
(c)	On or after the effective date of an amendment to the Constitution permitting the General Assembly to enact laws permitting counties to issue bonds secured by incremental increases in real property taxes within specifically designated taxing districts for certain types of projects, counties may utilize such obligations to secure or provide for the agreements described in subsection (a) of this section using a cargo airport complex site or a portion within the county as the development financing district pursuant to Article 6 of Chapter 159 of the General Statutes.
"§ 159J-14.  Remedies.
Any owner of bonds or notes issued under the provisions of this Chapter or any coupons appertaining thereto, and the trustee under any trust agreement securing or resolution authorizing the issuance of such bonds or notes, except to the extent the rights given may be restricted by the trust agreement or resolution, may either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the State or granted hereunder or under the trust agreement or resolution, or under any other contract executed by the Authority pursuant to this Chapter; and may enforce and compel the performance of all duties required by this Chapter or by the trust agreement or resolution by the Authority or by any officer of the Authority.
"§ 159J-15.  Airport zoning authority approval required.
Notwithstanding the provisions of G.S. 63-31, no airport zoning provisions or restrictions may be adopted by any other political subdivision or State agency affecting real property within two miles of any cargo airport complex site without the approval of the Authority.
"§ 159J-16.  Status of bonds and notes under Uniform Commercial Code.
All bonds and notes and interest coupons, if any, issued under this Chapter are made investment securities within the meaning of and for all the purposes of Article 8 of the Uniform Commercial Code, as enacted in Chapter 25 of the General Statutes.
"§ 159J-17.  Officers not liable.
No member or officer of the Authority shall be subject to any personal liability or accountability by reason of his execution of any bonds or notes or the issuance of any bonds or notes.
"§ 159J-18.  Conflicts of interest.
If any member, officer, or employee of the Authority shall be interested either directly or indirectly, or shall be an officer or employee of or have an ownership interest in any firm or corporation, not including units of local government, interested directed or indirectly, in any contract with the Authority, the interest shall be disclosed to the Board and shall be set forth in the minutes of the Board.  The member, officer, or employee having an interest shall not participate on behalf of the Authority in the authorization of any contract.  Other provisions of law notwithstanding, failure to take any or all actions necessary to carry out the purposes of this section may not affect the validity of any bonds or notes pursuant to the provisions of this Chapter.
"§ 159J-19. Cooperation by other State agencies.
All State officers and agencies shall render the services to the Authority within their respective functions as may be requested by the Authority.
"§ 159J-20. Annual reports.
The Authority shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding year to the Governor, the General Assembly, and the Local Government Commission. Each report shall be accompanied by an audit of its books and accounts by an independent certified public accountant.
"§ 159J-21. General laws apply to Authority; exceptions.
As a State agency, the general laws that apply to State agencies apply to the Authority, except as specified below and as specified by other provisions of this Chapter. These general laws include the following:
(1)	Chapter 132 of the General Statutes, which governs public access to records of a State agency, shall apply.
(2)	Article 33C of Chapter 143 of the General Statutes, which governs meetings of a State agency, shall apply.
(3)	Article 5A of Chapter 147 of the General Statutes, which governs oversight by the State Auditor, shall apply.
(4)	Article 31 of Chapter 143 of the General Statutes, which governs tort claims against State agencies, shall apply.
(5)	Chapter 150B of the General Statutes shall apply, except that Articles 2 and 3 of Chapter 150B shall not apply to (i) contracts or other rules or regulations as to the acquisition, construction, operation, or use, including fees or charges for use, of any portions of a cargo airport complex or (ii) any agreement between the Authority and a local government or political subdivision.
(6)	Articles 8B and 36 of Chapter 143 of the General Statutes shall not apply. G.S. 143-31.1 and 143-34.1 shall not apply. The procedures and requirements of Articles 3 and 8 of Chapter 143 of the General Statutes shall apply to contracts with respect to airport projects, but not contracts for services listed in 49 U.S.C. 2210(a)(16) or for special user projects, except that the powers and duties prescribed by those Articles shall be exercised by the Authority and shall not be exercised by the Secretary of Administration, other State officers, employees, or agencies.
(7)	Chapter 126 of the General Statutes shall not apply, except that Articles 5 and 7 of Chapter 126 shall apply and the executive director and other employees of the Authority shall be eligible for participation in the Retirement System for Teachers and State Employees.
"§ 159J-22.  Dissolution.
Whenever the Board shall by resolution determine that the purposes for which the Authority was formed have been substantially fulfilled and that all bonds issued and all other obligations incurred by the Authority have been fully paid or satisfied, the Board may declare the Authority to be dissolved.  On the effective date of the resolution, the title to all funds and other property owned by the Authority at the time of the dissolution shall vest in the State and possession of the funds and other property shall be delivered to the State."
Sec. 2. Interpretation of act. (a) This act shall be deemed to provide an additional and alternative method for executing the provisions of this act, shall be regarded as supplemental to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.
(b) This act, being necessary for the health and welfare of the people of this State, shall be liberally construed to effect its purposes.
(c) Insofar as the provisions of this act are inconsistent with the provisions of any general laws, the provisions of this act shall be controlling.
(d) Insofar as the provisions of this act are inconsistent with the provisions of any local, special, or private laws, the provisions of those laws are repealed to the extent of the conflict.
(e) If any provisions of this act or its application are held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.
Sec. 3. G.S. 126-5(c1) is amended by adding a new subdivision to read:
"(15)	Employees of the North Carolina Air Cargo Airport Authority."
Sec. 4. G.S. 143-336 reads as rewritten:
"§ 143-336. Definitions.
As used in this Article:
‘Agency' includes every agency, institution, board, commission, bureau, council, department, division, officer, and employee of the State, but does not include counties, municipal corporations, political subdivisions, county and city boards of education, and other local public bodies.
‘Community college buildings' means all buildings, utilities, and other property developments located at a community college, which is defined in G.S. 115D-2(2).
	‘Department' means the Department of Administration, unless the context otherwise requires.
‘Public buildings' means all buildings owned or maintained by the State in the City of Raleigh, but does not mean any building which a State agency other than the Department of Administration is required by law to care for and maintain.
‘Public buildings and grounds' means all buildings and grounds owned or maintained by the State in the City of Raleigh, but does not mean any building or grounds which a State agency other than the Department of Administration is required by law to care for and maintain.
‘Public grounds' means all grounds owned or maintained by the State in the City of Raleigh, but does not mean any grounds which a State agency other than the Department of Administration is required by law to care for and maintain.
‘Secretary' means the Secretary of Administration, unless the context otherwise requires.
‘State buildings' mean all State buildings, utilities, and other property developments except the State Legislative Building, railroads, highway structures, bridge structures, and any buildings, utilities, or property owned or leased by the North Carolina Air Cargo Airport Authority.
But under no circumstances shall this Article or any part thereof apply to the judicial or to the legislative branches of the State."
Sec. 5. G.S. 143-433.9 reads as rewritten:
"§ 143-433.9.  Allocation.
(a)	To provide for the orderly and prompt issuance of private activity bonds there are hereby proclaimed formulas for allocating the unified volume limitation and the state housing credit ceiling.  The unified volume limitation for all issues in North Carolina shall be considered as a single resource to be allocated under this Article.  The Committee shall issue allocations of the unified volume limitation and shall issue allocations of the State Housing Credit Ceiling.  The Committee shall set forth procedures for making such allocations and in the making of such allocations shall take into consideration the best interest of the State of North Carolina with regard to the economic development and general prosperity of the people of North Carolina.
(b)	Notwithstanding subsection (a) of this section, the Committee shall comply with the provisions of G.S. 159J-10(g)."
Sec. 6. G.S. 150B-1(d) is amended by adding the following new subdivision to read:
"(14)	This Chapter applies to Chapter 159J of the General Statutes except as provided by G.S. 159J-21(5)."
Sec. 7. G.S. 160A-460 reads as rewritten:
"§ 160A-460. Definitions.
The words defined in this section shall have the meanings indicated when used in this Part:
(1)	‘Undertaking' means the joint exercise by two or more units of local government, or the contractual exercise by one unit for one or more other units, of any power, function, public enterprise, right, privilege, or immunity of local government.
(2)	‘Unit,' or ‘unit of local government' means a county, city, consolidated city-county, local board of education, sanitary district, or other local political subdivision, authority, or agency of local government, or the North Carolina Air Cargo Airport Authority."
Sec. 8.  G.S.120-123 is amended by adding a new subdivision to read:
"(25a)	The North Carolina Air Cargo Airport Authority as established under G.S. 159J-3."
Sec. 9.  G.S. 160A-20 reads as rewritten:
"§ 160A-20. Security interests.
(a)	Cities, counties, water and sewer authorities created under Article 1 of Chapter 162A of the General Statutes, and the North Carolina Air Cargo Airport Authority may purchase or finance the purchase of real or personal property by installment contracts that create in the property purchased a security interest to secure payment of the purchase price to the seller or to an individual or entity advancing moneys or supplying financing for the purchase transaction.
(b)	Cities, counties, water and sewer authorities created under Article 1 of Chapter 162A of the General Statutes, and the North Carolina Air Cargo Airport Authority may finance the construction or repair of fixtures or improvements on real property by contracts that create in the fixtures or improvements, or in all or some portion of the property on which the fixtures or improvements are located, or in both, a security interest to secure repayment of moneys advanced or made available for such construction or repair.
(c)	Cities, counties, water and sewer authorities created under Article 1 of Chapter 162A of the General Statutes, and the North Carolina Air Cargo Airport Authority may use escrow accounts in connection with the advance funding of transactions authorized by this section, whereby the proceeds of such advance funding are invested pending disbursement.
(d)	No contract entered into under this section may contain a nonsubstitution clause that restricts the right of a city, a county, a water and sewer authority created under Article 1 of Chapter 162A of the General Statutes, or the North Carolina Air Cargo Airport Authority to:
(1)	Continue to provide a service or activity; or
(2)	Replace or provide a substitute for any fixture, improvement, project, or property financed or purchased pursuant to such contract.
(e)	A contract entered into under this section is subject to approval by the Local Government Commission under Article 8 of Chapter 159 of the General Statutes if it:
(1)	Meets the standards set out in G.S. 159-148(a)(1), 159-148(a)(2), and 159-148(a)(3), or involves the construction or repair of fixtures or improvements on real property; and
(2)	Is not exempted from the provisions of that Article by one of the exemptions contained in G.S. 159-148(b).
(f)	No deficiency judgment may be rendered against any city, county, water and sewer authority created under Article 1 of Chapter 162A of the General Statutes, or the North Carolina Air Cargo Airport Authority in any action for breach of a contractual obligation authorized by this section, and the taxing power of a city or county is not and may not be pledged directly or indirectly to secure any moneys due under a contract authorized by this section.
(g)	Before entering into a contract under this section involving real property, a city, a county, or a water and sewer authority created under Article 1 of Chapter 162A of the General Statutes shall hold a public hearing on the contract.  A notice of the public hearing shall be published once at least 10 days before the date fixed for the hearing."
Sec. 10.  G.S. 160A-167(d) reads as rewritten:
"(d)	For the purposes of this section, ‘authority' means an authority organized under Article 1 of Chapter 162A of the General Statutes, the North Carolina Water and Sewer Authorities Act, or the North Carolina Air Cargo Airport Authority."
Sec. 11.  This act is effective upon ratification.