Bill Summary for H 538 (2015-2016)

Summary date: 

Jul 23 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 538 (Public) Filed Wednesday, April 1, 2015
AN ACT TO AMEND AND CLARIFY THE POWERS OF WATER AND SEWER AUTHORITIES, TO AUTHORIZE COUNTIES AND CITIES TO PLEDGE A SECURITY INTEREST IN AN ESCROW ACCOUNT UNDER CERTAIN CONDITIONS, TO ALLOW THE LOCAL GOVERNMENT COMMISSION TO AUTHORIZE A THIRTY‑YEAR MATURITY DATE FOR THE FINANCING OF CERTAIN WATER SYSTEM PROJECTS, TO AUTHORIZE METROPOLITAN WATER DISTRICTS AND METROPOLITAN WATER AND SEWERAGE DISTRICTS TO ENTER INTO INSTALLMENT CONTRACT FINANCING AGREEMENTS, AND TO REQUIRE PUBLIC OR COMMUNITY WASTEWATER SYSTEMS TO ACCEPT LIQUID CONDENSATE GENERATED BY RESIDENTIAL HEATING AND COOLING SYSTEMS.
Intro. by Millis.

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Bill summary

Senate committee substitute makes the following changes to the 3rd edition.

Amends the act's long title.

Renumbers and renames proposed GS 158-7.5, Security interests in rural economic development loans as GS 160A-17.2, Security interests in United States Department of Agriculture loans. Deletes subsection (a) and replaces it with provisions providing that a county or municipality can pledge a security interest in an escrow account funded with loan proceeds or a certificate of deposit in order to secure repayment of the loan if the loan is an interest-free agreement entered into with the US Department of Agriculture or other authorized intermediary. Requires the escrow accounts to be substantiated by a written escrow agreement. Sets other compliance requirements for deposits/certificates of deposits.

Amends GS 159G-40(b), deleting language which provided that the maximum maturity for a loan for a high unit cost project is 30 years or the project's expected life, whichever is shorter. Provides that the changes in the act to GS 159G-40 become effective when the act becomes law but expire on July 1, 2016, with such sunset not affecting the validity of any loan agreement approved before or loan increases approved after the sunset if the loan was approved in accordance with GS 159G-40.

Amends GS 160A-20(h) to provide that the term "unit of local government" also includes metropolitan water districts and metropolitan water and sewer districts.

Amends GS 162A-36(a) and GS 162A-69 to provide that metropolitan water and sewerage districts have the authority to pledge security interests in accordance with GS 160A-20. 

Makes technical changes.  

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