Posts Tagged ‘borrowing money’

Security for a Local Government Loan

Monday, January 27th, 2014

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 […]

Debt Financing Primer for Local Governments: Installment Finance Agreements

Thursday, June 2nd, 2011

Quick 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 […]