NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 1059

HOUSE BILL 169

 

 

AN ACT AUTHORIZING THE BOARD OF TRUSTEES OF EAST CAROLINA COLLEGE TO CONSTRUCT AN ADDITION AND IMPROVEMENTS TO FICKLEN STADIUM AT EAST CAROLINA COLLEGE TO PROVIDE ADDITIONAL PERMANENT SEATING FACILITIES; WITH APPURTENANCES AND INCIDENTALS, AND TO ISSUE REVENUE BONDS THEREFOR WITHOUT A PLEDGE OF TAXES OR THE FAITH AND CREDIT OF THE STATE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Purpose of Act. The purpose of this Act is to authorize the financing of an addition and improvements to Ficklen Stadium at East Carolina College to provide additional permanent seating facilities, with appurtenances and incidentals, at East Carolina College by the issuance of revenue bonds not to exceed the sum of six hundred thousand dollars ($600,000.00) payable out of revenues derived from the operation of said stadium, admission fees from athletic games and student fees collected from students enrolled at said College, without pledging therefor any taxes or the faith and credit of the State or any political subdivision thereof.

Sec. 2.  Credit of State Not Pledged. Revenue bonds issued under this Act shall not be deemed to constitute a debt or liability of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any such political subdivision, but shall be payable solely from the funds herein provided therefor from revenues. All such revenue bonds shall contain on the face thereof a statement to the effect that neither the State nor the Board of Trustees of East Carolina College shall be obligated to pay the same or the interest thereon except from revenues as herein defined and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of revenue bonds shall not directly or indirectly or contingently obligate the State or any political subdivision thereof to levy or to pledge any taxes whatsoever therefor.

Sec. 3.  Definitions. As used in this Act:

A.        "board" means the Board of Trustees of East Carolina College or, if said board shall be abolished, the board, body, commission, department or officer succeeding to the principal functions thereof or to whom the powers given by this Act to the board shall be given by law;

B.         "College" means East Carolina College, in Greenville;

C.        "cost", as applied to the project, embraces the cost of construction, the cost of the acquisition of all property, both real and personal, the cost of demolishing, removing or relocating any buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved or relocated, the cost of all machinery and equipment, financing charges, interest prior to and during construction and, if deemed advisable by the board, for a period not exceeding one year after completion of such construction, reserves for interest, cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing the project and such other expenses as may be necessary or incident to the construction of the project and the financing of such construction;

D.        "project" means an addition and improvements to Ficklen Stadium to provide additional permanent seating facilities for approximately 10,000 additional persons, with appurtenances and incidentals, including, but without limiting the generality thereof, the relocation of existing semi-permanent seating facilities, parking facilities, lighting, facilities for newspaper, radio and television coverage, elevators, dressing rooms, first aid facilities, rest rooms, ticket booths, fences and gates, concession facilities, approach roads and other roadways, pedestrian ramps and walks, drainage facilities, traffic control facilities, landscaping, water, sewer and other public facilities, scoreboards, public address and other electronic equipment, and such additional equipment, furnishings, machinery, improvements and property, both real and personal, necessary or convenient for the construction, operation, repair and maintenance of a modern, efficient stadium for the use, accommodation, enjoyment and welfare of the students enrolled at the College, the general public, State agencies and other public and private agencies;

E.         "revenues" includes all or any part of the fees, rents, charges and other income and revenues derived from or in connection with the project, receipts of the College from athletic games and student fees collected from students enrolled at the College; and

F.         "stadium" means the Ficklen Stadium, including the project.

Sec. 4.  General Grant of Powers to Board. The board is authorized, subject to the requirements of this Act:

A.        to construct the project and to maintain, repair and operate the stadium and to enter into contracts for the management, lease, use or operation of the stadium or any portion thereof;

B.         to issue revenue bonds as hereinafter provided to pay the cost of the project in whole or in part, and to fund or refund the same;

C.        to fix and revise from time to time and charge and collect student fees from students enrolled at the College, rates, fees, rents and charges for the use of and for the services furnished by the stadium or any portion thereof, and admission fees for athletic games at the College;

D.        to establish rules and regulations for the use of and the services rendered by the stadium;

E.         to acquire, hold, lease and dispose of real and personal property in the exercise of its powers and the performance of its duties hereunder and to lease the stadium or any portion thereof for such period or periods of years, not exceeding 40 years, upon such terms and conditions as the board may determine;

F.         to employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and such other employees and agents as may be necessary in its judgment in connection with the project or the stadium, and to fix their compensation;

G.        to make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this Act;

H.        to receive and accept from any Federal, State or other public agency or from any private agency or agencies or benefactors, including any college alumni or other persons or entities, donations, loans, grants, aid or contributions of either money, property, labor or other things of value, to be held, used and applied only for such aspects of the project or the stadium for which such donations, loans, grants, aid or contributions may be made; and

I.          to do all acts and things necessary or convenient to carry out the powers expressly granted by this Act.

Sec. 5.  Incidental Powers. The board shall have power to make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation and removal of tracts, pipes, mains, conduits, cables, wires, towers, poles and other equipment and appliances (herein called "public utility facilities") of any public utility, pipe line company or other public or private entity in, on, along, over or under the stadium. Whenever the board shall determine that it is necessary that any such public utility facilities which now are, or hereafter may be, located in, on, along, over or under the stadium should be relocated or should be removed, the owner or operator of such facilities shall relocate or remove the same in accordance with the order of the board; provided, however, that the cost and expenses of such relocation or removal, including the cost of installing such facilities in a new location or new locations, and the cost of any lands, or any rights or interests in lands, and any other rights, required to accomplish such relocation or removal shall be ascertained and paid by the board as a part of the cost of the project.

Sec. 6.  Revenue Bonds. The board is hereby authorized to issue, subject to the approval of the Advisory Budget Commission, at one time or from time to time, revenue bonds of the board, not to exceed six hundred thousand dollars ($600,000.00), for the purpose of paying all or any part of the cost of the project. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding six per centum (6%) per annum, shall mature at such time or times not exceeding 40 years from their date or dates, as may be determined by the board, and may be made redeemable before maturity, at the option of the board, at such price or prices and under such terms and conditions as may be fixed by the board prior to the issuance of the bonds. The board shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the State. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. Notwithstanding any of the other provisions of this Act, all such bonds shall be deemed to be negotiable instruments under the laws of this State, subject only to the provisions for registration in any resolution authorizing the issuance of such bonds or any trust agreement securing the same. The bonds may be issued in coupon or in registered form, or both, as the board may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the exchange of either coupon bonds or registered bonds without coupons for an equal aggregate principal amount of other coupon bonds or registered bonds without coupons, or both, of any denomination or denominations. The board may sell such bonds in such manner, either at public or private sale, and for such price as it may determine will best effect the purposes of this Act and otherwise serve the public interest.

The proceeds of the bonds of each issue shall be disbursed in such manner and under such restrictions, if any, as the board may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter mentioned securing the same. Unless otherwise provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, if the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit and shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds.

The resolution providing for the issuance of any bonds hereunder, and any trust agreement securing such bonds, may also contain such limitations upon the issuance of additional revenue bonds as the board may deem proper, and such additional bonds shall be issued under such restrictions and limitations as may be prescribed by such resolution or trust agreement.

Prior to the preparation of definitive bonds, the board may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The board may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Except as herein otherwise provided, bonds may be issued under this Act, and other powers vested in the board under this Act may be exercised by the board without obtaining the consent of any department, division, commission, board, bureau, or agency of the State, and without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this Act.

Sec. 7.  Trust Agreement. In the discretion of the board any revenue bonds issued under this Act may be secured by a trust agreement by and between the board and a corporate trustee (or trustees) which may be any trust company or bank having the powers of a trust company within or without the State. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received, but shall not convey or mortgage the stadium or any part thereof. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the holders of such bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the board in relation to the construction of the project and the improvement, maintenance, repair, operation and insurance of the stadium, the student fees, other fees, rents and charges to be fixed and collected, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the State which may act as depositary of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the board. Any such trust agreement may set forth the rights and remedies of the holders of the bonds and of the trustee or trustees, and may restrict the individual right of action by such holders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the board may deem reasonable and proper for the security of such holders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the project for which such bonds are issued or as an expense of operation of the stadium, as the case may be.

Sec. 8.  Revenues. The board is hereby authorized to fix, revise, charge and collect student fees from students enrolled at the College, to fix, revise, charge and collect other fees, rents and charges for the use of and for the services furnished or to be furnished by the stadium, or any portion thereof, and admission fees for athletic games and other public events at the College and to contract with any person, partnership, association or corporation desiring the use of any part or all thereof, and to fix the terms, conditions, fees, rents and charges for such use. Such fees, rents and charges shall be so fixed and adjusted, with relation to other revenues or funds available therefor, as to provide funds at least sufficient, with such other revenues or funds, if any, (a) to pay the cost of maintaining, repairing and operating the stadium, (b) to pay the principal of and the interest on such bonds as the same shall become due and payable and (c) to create and maintain reserves for such purposes. Such fees, rents and charges shall not be subject to supervision or regulation by any other commission, board, bureau or agency of the State. A sufficient amount of the revenues, except such part thereof as may be necessary to pay such cost of maintenance, repair and operation and to provide such reserves therefor and for renewals, replacements, extensions, enlargements and improvements as may be provided for in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby 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 therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the fees, rents and charges and other revenues or other moneys so pledged and thereafter received by the board shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the board, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the board. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement.

Sec. 9.  Insurance. Notwithstanding the provisions of any other law, the board may carry insurance on the stadium in such amounts and covering such risks as it may deem advisable.

Sec. 10.  Trust Funds. All moneys received pursuant to the authority of this Act, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this Act. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such requirements as are provided in this Act and the resolution authorizing the bonds or the trust agreement securing such bonds.

Sec. 11.  Remedies. Any holder of bonds issued under this Act or of any of the coupons appertaining thereto, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by such trust agreement or the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the State or granted hereunder or under such trust agreement or resolution, and may enforce and compel the performance of all duties required by this Act or by such trust agreement or resolution to be performed by the board or by any officer thereof, including the fixing, charging and collecting of fees, rents and charges.

Sec. 12.  Exemption From Taxation. The exercise of the powers granted under this Act will be in all respects for the benefit of the people of the State and for the furtherance of public education and the commerce and prosperity of the State, and as the operation and maintenance of the stadium by the board will constitute the performance of an essential governmental function, the board shall not be required to pay any taxes or assessments upon such project or any property acquired or used by the board under the provisions of this Act or upon the income from such property, and any bonds issued under this Act, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation by the State and by the municipalities, counties and other political subdivisions in the State.

Sec. 13.  Bonds Eligible for Investment. Bonds issued by the board under the provisions of this Act are hereby made securities in which all public officers 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. Such bonds are hereby 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 or obligations of the State is now or may hereafter be authorized by law.

Sec. 14.  Bond Anticipation Notes. The board shall have power, at any time and from time to time after the issuance of bonds hereunder shall have been authorized by the board, to borrow money for the purpose for which such bonds are to be issued in anticipation of the receipt of the proceeds of the sale of such bonds and within the authorized maximum amount of such bond issue. Bond anticipation notes shall be issued for moneys borrowed under the provisions of this Section, which notes shall be payable solely from the proceeds of the sale of such bonds. Such notes may be renewed from time to time and such notes, including any renewal notes, shall mature not later than five years after the date on which the issuance of such bonds shall have been authorized. Such notes shall be authorized by a resolution of the board or its executive committee and shall be in such denomination or denominations, shall bear interest at such rate or rates not exceeding six per centum (6%) per annum, shall be in such form and shall be executed in such manner, all as the board or its executive committee shall prescribe. Such notes may be sold at either public of private sale or, if such notes shall be renewal notes, may be exchanged for notes then outstanding on such terms as the board shall determine.

Sec. 15.  Revenue Refunding Bonds. The board is hereby authorized, subject to the approval of the Advisory Budget Commission, to provide for the issuance of its revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued by it under the provisions of this Act, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, if deemed advisable by the board, for the additional purpose of paying all or part of the cost of constructing improvements, extensions or enlargements of the stadium. In case such bonds shall be issued for the purpose or in part for the purpose of refunding outstanding bonds prior to their stated maturity or earliest redemption date, the board must determine either (a) that such refunding will result in savings to the board, taking into account the redemption premium, if any, to be paid and the interest to accrue to such maturity or redemption date, the savings resulting from a reduction in the interest rate borne by the outstanding bonds, any premium or discount on the sale of such refunding bonds and the income to be received from the investment of the proceeds of such refunding bonds, or (b) that such refunding is necessary to avoid a default in the payment of the principal of such outstanding bonds at their stated maturity. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the board in respect of the same, shall be governed by the provisions of this Act insofar as the same may be applicable.

Sec. 16.  Vesting of Authority in Executive Committee of Board. The board may authorize its executive committee to sell any bonds or notes which the board has authorized to be issued under this Act and to perform or cause to be performed such other duties and functions in connection with the construction of the project and the operation and maintenance of the stadium and the issuance of bonds or notes under this Act as the board by resolution may prescribe, subject to such limitations and conditions as the board may impose.

Sec. 17.  Miscellaneous. Any action taken by the board under the provisions of this Act may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted.

Sec. 18.  Additional Method. The foregoing Sections of this Act shall be regarded as supplemental and additional to powers conferred by other laws; provided, however, that the issuance of revenue bonds, revenue refunding bonds or bond anticipation notes under the provisions of this Act need not comply with the requirements of any other law applicable to the issuance of bonds.

Sec. 19.  Act Liberally Construed. This Act, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes thereof.

Sec. 20.  Constitutional Construction. The provisions of this Act are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.

Sec. 21.  Inconsistent Laws Inapplicable. All other general or special laws, or parts thereof, inconsistent herewith are hereby declared to be inapplicable to the provisions of this Act.

Sec. 22.  Effective Date. 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 3rd day of July, 1967.