Agenda - 06-04-1979 - Laserfiche WebLink

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k AGENDA ITEM i 8 Mrs, Atattr of �Grfh darafinaa $ Peijazrttt nt of Mats Tr.ea enrer HARLAN E BOYY.ES State and Local Goi,crunlent Finance Division JOHN O. Foust TREA GtIR ER DEPUTY TREASUArP and the Local Governveent C.ov mission May 8, 1979 MEMORANDUM TO: County Managers FROM: J. D. Foust, Secretary �~ North Carolina local Gove nment Commission SUBJECI: Bond Counsel for County Industrial Facilities and Pollution Control Financing Authority In several instances recently, counties or authorities created by counties to finance industrial projects under Chapter 159C of the General Statutes of North Carolina have been brought under pressure by private companies seeking to have such authorities finance projects in such counties, to ac,ept attorneys chosen by the private companies or bond counsel. I.t is very important that bond counsel for all industrial development bond financings should be the firm of bond counsel regularly employed by the county. G,S. 159C-8 states "No bonds may be issued by an authority unless the issuance thereof is first approved by the Local Government Commission." The Commission's interests in this matter are twofold: 1. First, and of paramount importance to t"c;- Commission, is the concern that bond counsel, which is charged with the respon- sibility for structuring the transaction, drafting the papers and delivering the necessary opinion on the bonds and in most instances preparing and reviewing opinions rendered by other attorneys in the financing, should be working with the best interests of the county and its industrial development authority at heart. Where counsel other than regular bond counsel to the county is selected by a private corporation, such selection is often made with the best interests of the corporation and not the county in mind. 2, Second, the Commission is charged by statute to approve the issuance of all bonds issued under Chapter 159C, to approve the interest rate thereon and to approve the manner of the sale. In the exercise of this responsibility, the Commission staff works very closely with the county's bond counsel. While the Commission staff reviews thoroughly the financial statements of each private corporation involved in an industrial, development bond financing, in North Carolina and reviews generally the papers prepared by bond counsel for the financing, the Commission has not chosen to establish lengthy regulations or formal. time 325 N SALt SOURY 5TREET RALEIGH NORTH CAROLINA 27611 19191 733 306A