NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION

CHAPTER 636
SENATE BILL 576

AN ACT AMENDING PART 4 OF ARTICLE 1 OF CHAPTER 116 OF THE GENERAL STATUTES RELATING TO THE ISSUANCE OF REVENUE BONDS FOR SERVICE AND AUXILIARY FACILITIES AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL.

The General Assembly of North Carolina do enact:

Section 1.  Part 4 of Article 1 of Chapter 116 of the General Statutes is hereby amended as follows:
(a)	G.S. 116-41.1 is hereby amended by deleting in subdivision (3) thereof the comma at the end of the phrase "including reasonable provisions for initial operating expenses necessary or incident to the financing herein authorized" and inserting "and a reserve for debt service," and rewriting subdivision (4) to read as follows:
"'Project' means any undertaking under this part to acquire, construct or provide service and auxiliary facilities necessary or desirable for the proper and efficient operation of the University Enterprises, either as additions, extensions, improvements or betterments to the University Enterprises or otherwise, including one or more or any combination of any system, facility, plant, works, instrumentality or other property used or useful:
a.	In obtaining, conserving, treating or distributing water for domestic, industrial, sanitation, fire protection or any other public or private use;
b.	For the collection, treatment, purification or disposal of sewage, refuse or wastes;
c.	For the production, generation, transmission or distribution of gas, electricity or heat;
d.	In providing communication facilities including telephone facilities;
e.	In providing storage, service, repair and duplicating facilities;
f.	In improving, extending or adding to the University Enterprises as herein defined; and
g.	In providing other service and auxiliary facilities serving the needs of the students, the staff or the physical plant of the University; and including all plants, works, appurtenances, machinery, equipment and properties, both personal and real, used or useful in connection therewith;
and in the case of the telephone, electric and water systems comprising a part of the University Enterprises such additions, extensions, improvements or betterments thereof as may be necessary or desirable, in the discretion of the Board, to provide service from such systems, where it may be reasonably made available, within the environs of the University, including, without limitation, areas presently served by the University Enterprises in Orange, Durham and Chatham Counties."
(b)	G.S. 116-41.2 is hereby amended by renumbering existing subdivisions (7) and (8) as (8) and (9) and inserting a new subdivision (7) reading as follows:
"(7)	To insure the payment of service charges with respect to the telephone, electric and water systems of the University Enterprises, as the same shall become due and payable, the Board may, in addition to any other remedies which it may have,
(1)	require reasonable advance deposits to be made with it to be subject to application to the payment of delinquent service charges, and
(2)	at the expiration of 30 days after any such service charges become delinquent, discontinue supplying the services and facilities of such telephone, electric and water systems."
(c)	G.S. 116-41.4 is hereby amended by:
(i)	adding the following paragraph at the end of the first sentence thereof:
"; provided, however, that the aggregate principal amount of revenue bonds which the board is authorized to issue under this section during the biennium ending June 30, 1973 shall not exceed thirteen million dollars ($13,000,000)",
(ii)	deleting from the second sentence of the first paragraph thereof the words "not exceeding seven and one-half per centum (7.5%) per annum", and
(irewriting the last sentence of the first paragraph thereof to read as follows:
"The Board may sell such bonds in such manner, at public or private sale, and for such price as it may determine to be for the best interests of the University."
Sec 2.  All laws and clauses of laws in conflict with the provisions of this act are hereby repealed.
Sec 3.  This act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 21st day of June, 1971.