Applying for Debt

LGC Approval

LGC Approval

LGC approval is required for more than just issuing bonds; units of local government wishing to enter into certain contracts, MOUs, and other financing arrangements also require LGC approval. These helpful flowcharts below from the UNC School of Government will help you to determine if LGC approval is required prior to a unit of local government issuing debt or entering into contracts or other financing arrangements. For a full explanation of transactions requiring LGC approval, refer to Local Government Commission (LGC) Approval of Contracts, Leases, and Other (Non-Debt) Financing Agreements

Master Flowchart Start with this flowchart to determine if LGC approval is required.  Use the flowcharts that follow based on the findings of the Master Flowchart
Flowchart A Installment Purchase (G.S. 160A-20) Financings
Flowchart B Contracts Relating to Lease, Acquisition, or Construction of Capital Asset (G.S. 159-48)
Flowchart C Borrowings by Other Entity on behalf of Local Government, or on behalf of Public Body, Agency, or Similar Entity Created by Action of Local Government (G.S. 159-153)
Flowchart D Local Government, or Public Body, Agency, or Similar Entity Created by Action of Local Government Enters into Financing Agreement Similar to Incurring Indebtedness (G.S. 159-153)

 

LGC Guidelines for Debt Issuance

LGC Guidelines for Debt Issuance

The LGC staff publishes guidelines for units of local government wishing to issue debt.  These guidelines provide a summary of the fiscal management and debt management items that the LGC may consider, and are meant to assist applicants in receiving timely approval of financing requests.

North Carolina General Statutes

North Carolina General Statutes

Refer to the following North Carolina General Statutes below for information and requirements related to debt applications, approval, and issuance.

Local Government Bond Act
NCGS Chapter 159 Article 4

Revenue Bonds
NCGS Chapter 159 Article 5

Capital Appreciation Bonds
NCGS Chapter 159 Article 5A

Project Development Financing Act
NCGS Chapter 159 Article 6

Issuance and Sale of Bonds
NCGS Chapter 159 Article 7

Financing Agreements and Other Financing Arrangements
NCGS Chapter 159 Article 8

Bond Anticipation, Tax, Revenue and Grant Anticipation Notes
NCGS Chapter 159 Article 9

Borrowing by Cities for Competitive Purposes
NCGS Chapter 159 Article 9A

Assistance for Defaulting Units in Refinancing Debt
NCGS Chapter 159 Article 10

Borrowing by Development Authorities Created by General Assembly
NCGS Chapter 159 Article 12

Interest Rate Swap Agreements for Governmental Units
NCGS Chapter 159 Article 13

Borrowing by Airport Authorities
NCGS Chapter 159 Article 14

Borrowing for Expansion of Existing Landfills and Construction of New Landfills in Certain Circumstances
NCGS Chapter 159 Article 15
 

Application and Audit Deadlines

Application and Audit Deadlines

Go to Application and Audit Deadlines page