Orange County NC Website
SL2006 -0232 <br />GENERAL ASSEMBLY OF NORTH CAROLINA <br />SESSION 2005 <br />SESSION LAW 2006 -232 <br />SENATE BILL 2009 <br />AN ACT TO ALLOW CAPITAL LEASE FINANCING FOR PUBLIC SCHOOLS, <br />The General Assembly of North Carolina enacts: <br />Page 1 of 5 <br />SECTION 1. Article 37 of Chapter 115C is amended by adding a new section to <br />read: <br />"& 115C- 53�1.�Ca�ital leases of�school b dings andischool fac�'ilities. <br />(j) Capital lease. — A capital lease as defined by eg nerall�pted accounting <br />principles regardless of how the parties describe the agreement. <br />Private devetloper — The entity with which the school board enters into a <br />capital lease or build -to -suit lease under the provisions of this section. <br />(b) Authorization. — Local boards of education may enter into capital leases of real or <br />personal property for use as school buildings or school facilities. The capital lease may relate to <br />an existing building or a new school building to be constructed. The term of any capital lease <br />includinan renewal eriods shall not exceed 40 years from the expected date that the local <br />board of education will take occupancy of the propertythat is the subject of a capital lease. <br />Subdivision s_(c) and (d) of G.S. <br />115C -521 do not appl�o <br />a capital <br />lease entered into under this <br />section. <br />L � -- <br />developer is not subject to the requirements of Article 8 of Chapter 143 of the General Statutes. <br />Construction repair or renovation work undertaken or contracted by the private developer <br />involving the estimated expenditure of three hundred thousand dollars ($300,000) or more is <br />subiect to the provisions of G.S. 115C -532. <br />(4) Nonsubstitution Clause. — A capital lease may not contain a nonsubstitution clause <br />that restricts the right of a local board to continue to provide a service or activLpf or to replace or <br />provide a substitute for any mmerty_financed <br />or purchased <br />by the capital lease. <br />V V31J1UVLVV 4 VV11G LMiia uuv,. rya vwYava ... <br />provided however, notwithstanding any provision of G.S. 115C- 441(cl) or G.S. 115C -426, in <br />each fiscal year the <br />p so priation of funds by the coup for the payment of amounts due under <br />the capital lease shall be at the discretion of the board o county coininissioners. <br />(g) Local Government Coininission Approval. — Capital leases entered into under this <br />section are subiect to approval by the Local Government Commission under Article 8 of Chapter <br />159 of the General Statutes if then meet the standards set out in G.S. 159- 148(a)(1), 159- 148(a) <br />http: / /www.ncleg. net / Sessions/ 2005Bills /Senate/HTML /S2009v4.html 8/21/2006 <br />