NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 767

HOUSE BILL 1035

 

 

AN ACT TO AMEND SUBCHAPTER III OF CHAPTER 156 OF THE GENERAL STATUTES RELATING TO DRAINAGE DISTRICTS AS IT RELATES TO NOTICE OF HEARINGS AND LETTING OF CONTRACT; TYPES OF BONDS AND NOTES; SINKING FUND; TREASURER; AUDITOR; SUPERINTENDENT OF CONSTRUCTION; RECORDING OF BONDS AND NOTES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 156-64. Notice of Further Hearing.

Amend to read as follows:

Line 2—delete the words "for two consecutive weeks" and substitute therefor "once a week for at least two (2) consecutive weeks".

Sec. 2.  G.S. 156-73. Final Report Filed; Notice of Hearing.

Amend to read as follows:

Line 7—delete the word "ten" and substitute therefor the word "twenty".

Line 11—delete the words "for at least one week" and substitute therefor the words "once a week for at least three consecutive weeks".

Sec. 3.  G.S. 156-79. Election and Organization Under Original Act.

Amend by deleting the ninth sentence which begins on line 17 and reads as follows:

"The treasurer of the county in which the proceeding was instituted shall be ex officio treasurer of such drainage commissioners."

Sec. 4.  Add a new Section to Article 6 to read as follows:

G.S. 156-81.1. Treasurer.

"The clerk of the Superior Court for the county where the district was organized, shall appoint a treasurer for the drainage district for a term not to exceed twelve (12) months. The treasurer so appointed may be a member of the board of commissioners of the district or some other person deemed competent, and shall furnish bond as may be required by the said clerk of the Superior Court. The treasurer shall continue in office until a successor has been appointed and qualified.

"All references in subchapter III of Chapter 156 of the General Statutes of North Carolina, to 'treasurer' or 'county treasurer' or 'county auditor' are hereby amended to refer exclusively to the treasurer appointed as hereinbefore provided."

Sec. 5.  G.S. 156-83. Superintendent of Construction.

Amend to read as follows:

Lines 3 and 4—delete the comma in line 3 and insert in lieu thereof a period and delete the remainder of the sentence following the period so inserted.

Sec. 6.  G.S. 156-84. Letting Contracts.

Amend to read as follows:

1.         Delete the first and second lines and insert in lieu thereof the following:

"The board of drainage commissioners shall cause notice to be given of the letting of the contract. The notice shall be posted at the courthouse door in the county wherein the district was organized. Notice shall be posted no less than fifteen (15) days prior to the opening of the bids and shall be published at least once a week for two (2) consecutive weeks immediately prior to the opening of the bids, in some newspaper published in".

2.         Line 18 — delete the words "twenty-five" and substitute therefor the following, "no less than twenty-five nor more than one hundred".

Sec. 7.  G.S. 156-97.1. Issuance of Assessment Anticipation Notes.

Add a new paragraph to be the third paragraph, and to read as follows:

"The commissioners may issue either serial notes or an amortized note."

Sec. 8.  G.S. 156-99. Application of Funds; Holder's Remedy.

Amend by deleting the entire Section and inserting in lieu thereof the following:

"The commissioners of the district may sell the bonds or notes of the district for not less than par and devote the proceeds to the payment of the work as it progresses and to the payment of the other expenses of the district provided for in this subchapter. The proceeds from the sale of the said bonds or notes shall be for the exclusive use of the levee or drainage district specified therein. A copy of said bonds or notes shall be recorded in the drainage record. If serial bonds or notes are issued it shall only be necessary to record the first numbered bond or note, with a statement showing the serial numbers, the amount and the due dates of principal and interest.

"There shall be set out specifically in the drainage record of said proceeding, a description of the lands embraced in the district for which the tax or assessment has not been paid in full, and which is subject to the lien of the said obligations. A reference to the tract number on the map of the district as recorded in the drainage proceeding or in the office of the Register of Deeds is sufficient description.

"If any installment of principal or interest represented by the bonds and notes, shall not be paid at the time and in the manner when the same shall become due and payable, and such default shall continue for a period of six (6) months, the holder of such bonds or notes upon which default has been made may have a right of action against the drainage district or the board of drainage commissioners of the district, its officers, including the tax collector and treasurer, directing the levying of a tax or special assessment as herein provided, and the collection of same, in such sum as may be necessary to meet any unpaid installments of principal and interest and costs of action; and such other remedies are hereby vested in the holders of such bonds or notes in default, as may be authorized by law and the right of action is hereby vested in the holders of such bonds or notes upon which default has been made, authorizing them to institute suit against any officer on his official bond for failure to perform any duty imposed by the provisions of this subchapter.

"The official bond of the tax collector and treasurer shall be liable for the faithful performance of the duties herein assigned them. Such bond may be increased by the board of county commissioners."

Sec. 9.  Add a new Section to subchapter III of Chapter 156 to be designated as follows:

G.S. 156-100.2.  Payment of Assessments Which Become Liens After Original Bond Issue.

"Payment of assessments not included in the original bond or note issue shall be financed in the following manner:

"1.        In the event of appeal from the order of the clerk of Superior Court approving the final report of the board of viewers, the assessment approved by the appellate court shall be due and payable thirty (30) days from the entry of the final order in said appeal.

"2.        In the event land should be included within the district for any other reason, the assessment thereon shall be due and payable thirty (30) days after the date of the agreement or court order by which said land is included.

"3.        In the event the assessments referred to in the preceding paragraphs one (1) and two (2) are not paid at the expiration of the said thirty-day period, then the commissioners may provide for installment payments of said assessment upon such terms as may be approved by the clerk of the Superior Court who has jurisdiction of the said drainage proceeding.

"The commissioners of the district may issue bonds or notes for an amount equal to the total of the installment payments, upon terms as approved by the clerk of the Superior Court. The lien of the assessment, the rights of the bond or note holder, and all other liabilities and rights shall be the same as prescribed in this subchapter III for other bonds and notes of the district."

Sec. 10.  Add a new Section to subchapter III of Chapter 156 to be designated as follows:

G.S. 156-100.3.  Sinking Fund.

"The commissioners of the drainage district may establish a sinking fund to be used to pay bonds and notes issued by the district. The terms and conditions by which the said sinking fund is established shall be approved by the clerk of the Superior Court who has juisdiction of said district."

Sec. 11.  G.S. 156-133. Auditor Appointed.

Delete the existing Section and insert in lieu thereof, the following:

"The clerk of the Superior Court for the county where the district was organized, shall annually appoint an intelligent and competent person of sufficient experience, as auditor for each drainage district which levies current assessments or which has accumulated funds. The same person may be auditor of more than one drainage district. The auditor shall annually report to the court as to the financial affairs of the drainage district. The auditor may prepare all financial reports required by the drainage law to be made to the court by the commissioners of the drainage district. The compensation of the auditor shall be fixed by the said clerk of the Superior Court, and shall be paid out of the general, or operating, fund of the district."

Sec. 12.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 13.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 7th day of June, 1963.