North Carolina General Statutes 160A-17.2. Security interests in United States Department of Agriculture loans
Terms Used In North Carolina General Statutes 160A-17.2
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- United States: shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(a) A county or municipality may pledge a security interest in an escrow account funded with loan proceeds, or a certificate of deposit, to secure repayment of the loan, only if the loan is an interest-free loan agreement entered into with the United States Department of Agriculture or an authorized intermediary acting on behalf of the United States Department of Agriculture. Any such escrow account must be substantiated by a written escrow agreement, and the funds must be deposited in accordance with N.C. Gen. Stat. § 159-30 and N.C. Gen. Stat. § 159-31 Any certificate of deposit shall comply with the requirements of N.C. Gen. Stat. § 159-30
(b) An interest-free loan agreement entered into under this section is subject to approval by the Local Government Commission under Article 8 of Chapter 159 of the N.C. Gen. Stat., unless exempted in N.C. Gen. Stat. § 159-148(b).
(c) No deficiency judgment may be rendered against any county or municipality in any action for breach of a contractual obligation authorized by this section. The taxing power of a county or municipality is not and may not be pledged directly or indirectly to secure any moneys due under a contract authorized by this section. (2015-207, s. 3.)