May a unit pledge town hall as security for an installment finance loan, where the borrowed monies will be used to fund road and sidewalk construction and improvements? If a municipality issues revenue bonds to fund an expansion to its water system, may it repay the loan with general fund monies? May a county pledge […]
Posts Tagged ‘borrowing money’
Debt Financing Primer for Local Governments: Installment Finance Agreements
Thursday, June 2nd, 2011Quick Quiz: Which of the following constitutes an installment finance agreement under North Carolina law? 1. The Village of BlueSky purchases a fire truck for $350,000. To pay for the truck, the town enters into a financing agreement with a local bank. The financing contract extends for a period of five years, at 4.2% interest. The […]