North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S680 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 680
	3	+	S D
	4	+	SENATE BILL DRS45337-TCa-6
	5	+
5	6
6	7
7	8		Short Title: Comprehensive Capital for Childcare Expansion. (Public)
8	9		Sponsors: Senators Chitlik, Chaudhuri, and Garrett (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S680 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45337 -TCa-6
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO ESTABLISH THE NORTH CAROLINA CHILD CARE FINANCE AGENCY . 2
14	15		The General Assembly of North Carolina enacts: 3
15	16		SECTION 1.(a) The General Statutes is amended by adding a new Chapter to read: 4
16	17		"Chapter 122F. 5
17	18		"North Carolina Child Care Finance Agency. 6
18	19		"§ 122F-1. Short title. 7
19	20		This Chapter shall be known and may be cited as the "North Carolina Child Care Finance 8
20	21		Agency Act." 9
21	22		"§ 122A-2. Legislative findings and purposes. 10
22	23		(a) The General Assembly hereby finds and declares the following: 11
23	24		(1) That there exists in the State of North Carolina a serious shortage of accessible 12
24	25		and affordable child care. This statewide shortage severely impacts the State's 13
25	26		workforce and economy and is inimical to the health, safety, welfare and 14
26	27		prosperity of all residents of the State and to the sound growth of North 15
27	28		Carolina's economy. 16
28	29		(2) That private enterprise and investment have not been able to produce, without 17
29	30		assistance, the needed supply or rehabilitation of child care facilities to 18
30	31		provide sufficient child care for the State's workforce, including low-income 19
31	32		families. It is imperative that the supply of child care for families be increased; 20
32	33		and that private enterprise and investment be encouraged to sponsor, build, 21
33	34		rehabilitate, and operate child care for families to remove barriers to 22
34	35		employment and to foster health development for children. 23
35	36		(3) That the purposes of this Chapter are to provide financing for child care 24
36	37		construction, new or rehabilitated, for individuals providing high-quality child 25
37	38		care to families. 26
38	39		(4) That faith-based organizations are eligible for financing for child care 27
39	40		construction that provides high-quality child care. 28
40	41		(5) That businesses that make child care accessible to the their employees are 29
41	42		eligible for financing for child care construction that provides high-quality 30
42	43		child care. 31
43	44		(b) In accomplishing these public purposes, the North Carolina Child Care Finance 32
44	45		Agency, a public agency and an instrumentality of the State, is acting in all respects for the benefit 33
45	46		of the people of the State in the performance of essential public functions and serves a public 34
46		-	purpose in improving and otherwise promoting their health, welfare and prosperity. The North 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 680-First Edition
	47	+	purpose in improving and otherwise promoting their health, welfare and prosperity. The North 35
	48	+	FILED SENATE
	49	+	Mar 25, 2025
	50	+	S.B. 680
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45337-TCa-6
48	53		Carolina Child Care Finance Agency, is empowered to act on behalf of the State of North 1
49	54		Carolina and its people in serving this public purpose for the benefit of the general public. 2
50	55		(c) Whenever feasible, the North Carolina Child Care Finance Agency shall prioritize the 3
51	56		following policy goals in its actions: 4
52	57		(1) Give first priority in its programs to assisting child care providers with fewer 5
53	58		than 10 facilities. 6
54	59		(2) Undertake its programs in the areas where the greatest child care needs exists. 7
55	60		(3) Give priority to projects for child care facilities with licenses that indicate 8
56	61		high-quality child care, as determined by the North Carolina Child Care 9
57	62		Commission. 10
58	63		(4) Incentivize child-care providers, including faith-based organizations, to 11
59	64		provide full-day child care. 12
60	65		(5) Encourage private employers to provide on-site child care to employees, and 13
61	66		provide advising on information for research-based solutions, including 14
62	67		methods and guides to financing facilities and child care providers as partners. 15
63	68		(6) Encourage apprenticeships with community colleges and other institutions of 16
64	69		higher education for child care workers. 17
65	70		"§ 122F-3. Definitions. 18
66	71		The following definitions apply in this Chapter: 19
67	72		(1) Agency. – The North Carolina Child Care Finance Agency created by this 20
68	73		Chapter. 21
69	74		(2) Bonds or notes. – The bonds or the bond anticipation notes or construction 22
70	75		loan notes authorized to be issued by the Agency under this Chapter. 23
71	76		(3) Child care facility. – As defined in G.S. 110-86. For the purposes of this 24
72	77		chapter, a child care facility does not include a residential dwelling where 25
73	78		child care is provided. 26
74	79		(4) Construction loan. – A loan made by a lending institution or by the Authority 27
75	80		to any person for the purpose of financing construction of a child care facility. 28
76	81		(5) Federally insured securities. – An evidence of indebtedness secured by a first 29
77	82		mortgage lien on child care centers and insured or guaranteed as to repayment 30
78	83		of principal and interest by the United States or any agency or instrumentality 31
79	84		thereof. 32
80	85		(6) Governmental agency. – Any department, division, public agency, political 33
81	86		subdivision, or other public instrumentality of the State, the federal 34
82	87		government, any other State or public agency, or any two or more thereof. 35
83	88		(7) Mortgage or mortgage loan. – A mortgage loan for child care facilities, 36
84	89		including, without limitation, a mortgage loan to finance, either temporarily 37
85	90		or permanently, the construction, rehabilitation, improvement, or acquisition 38
86	91		and rehabilitation or improvement of a child care facility and a mortgage loan 39
87	92		insured or guaranteed by the United States or an instrumentality thereof or for 40
88	93		which there is a commitment by the United States or an instrumentality thereof 41
89	94		to insure such a mortgage. A mortgage obligation may be evidenced by a 42
90	95		security document and secured by a lien upon real property, including a deed 43
91	96		of trust and land sale agreement. 44
92	97		(8) Mortgage lenders. – Any bank or trust company, savings bank, national 45
93	98		banking association, savings and loan association, or building and loan 46
94	99		association, life insurance company, mortgage banking company, the federal 47
95	100		government, and any other financial institution authorized to transact business 48
96	101		in the State. 49 General Assembly Of North Carolina Session 2025
97		-	~~Senate Bill 680-First Edition~~ Page 3
	102	+	DRS45337-TCa-6 Page 3
98	103		(9) Mortgagee. – The owner of a beneficial interest in a mortgage loan, the 1
99	104		servicer for the owner of a beneficial interest in a mortgage loan, or the trustee 2
100	105		for a securitized trust that holds title to a beneficial interest in a mortgage loan. 3
101	106		(10) Obligations. – Any bonds or bond anticipation notes authorized to be issued 4
102	107		by the Agency under the provisions of this Chapter. 5
103	108		(11) Rehabilitation. – The renovation or improvement of a child care facility by the 6
104	109		owner or operator of that facility. 7
105	110		(12) Rehabilitation loan. – A loan made by a lending institution or by the Authority 8
106	111		to any person for the purpose of financing renovation of a child care facility. 9
107	112		(13) State. – The State of North Carolina. 10
108	113		"§ 122F-4. North Carolina Child Care Finance Agency. 11
109	114		(a) There is hereby created a body politic and corporate to be known as "North Carolina 12
110	115		Child Care Finance Agency" which shall be constituted a public agency and an instrumentality 13
111	116		of the State for the performance of essential public functions. 14
112	117		(b) The Agency shall be governed by a board of directors composed of 12 members for 15
113	118		a term of four years beginning July 1. The directors of the Agency shall be residents of the State 16
114	119		and shall not hold other public office. 17
115	120		(c) The Agency shall be appointed as follows: 18
116	121		(1) Six members appointed by the Governor as follows: 19
117	122		a. One member with experience in workforce needs. 20
118	123		b. One member with experience as a licensed child care provider. 21
119	124		c. One member with experience as a specialist in child care licensure. 22
120	125		d. One member with experience in construction of child care facilities. 23
121	126		e. One member with experience in commercial small business lending. 24
122	127		f. One member with experience in real estate development. 25
123	128		(2) Three members appointed by the General Assembly upon the 26
124	129		recommendation of the President Pro Tempore of the Senate as follows: 27
125	130		a. One member with experience with a savings and loan institution. 28
126	131		b. One member with experience as a licensed child care provider. 29
127	132		c. One member with experience in construction lending. 30
128	133		(3) Three members appointed by the General Assembly upon the 31
129	134		recommendation of the Speaker of the House of Representatives as follows: 32
130	135		a. One member with experience with a mortgage-servicing institution. 33
131	136		b. One member with experience as a licensed child care provider. 34
132	137		c. One member with experience in a business that makes on-site child 35
133	138		care available to employees. 36
134	139		(d) Any vacancy for a person appointed under subsection (1) of section (c) of this section 37
135	140		shall be filled by appointment of the Governor for the remainder of the unexpired term. Any 38
136	141		appointment by the General Assembly shall be made in accordance with G.S. 120-121 and 39
137	142		vacancies in those appointments shall be filled in accordance with G.S. 120-122. 40
138	143		(e) Any member of the board of directors shall be eligible for reappointment. Each 41
139	144		member of the board of directors may be removed by the Governor for misfeasance, malfeasance 42
140	145		or neglect of duty after reasonable notice and a public hearing, unless the same are in writing 43
141	146		expressly waived. Each member of the board of directors before entering upon the duties shall 44
142	147		take an oath of office to administer the duties of the office faithfully and impartially, and a record 45
143	148		of such oath shall be filed in the office of the Secretary of State. 46
144	149		(f) The Governor shall designate from among the members of the Board a chair and a 47
145	150		vice-chair. The terms of the chair and vice-chair shall extend to the earlier of either two years or 48
146	151		the date of expiration of their then current terms as members of the Board of Directors of the 49
147	152		Agency. The Agency shall exercise all of its prescribed statutory powers independently of any 50
148	153		principal State Department except as described in this Chapter. 51 General Assembly Of North Carolina Session 2025
149		-	Page 4 ~~Senate Bill 680-First Edition~~
	154	+	Page 4 DRS45337-TCa-6
150	155		(g) The Executive Director of the Agency shall be appointed by the Board of Directors, 1
151	156		subject to approval by the Governor. All staff and employees of the Agency shall be appointed 2
152	157		by the Executive Director, subject to approval by the Board of Directors; shall be eligible for 3
153	158		participation in the State Employees' Retirement System; and shall be exempt from the provisions 4
154	159		of the North Carolina Human Resources Act. All employees other than the Executive Director 5
155	160		shall be compensated in accordance with the salary schedules adopted pursuant to the North 6
156	161		Carolina Human Resources Act. The salary of the Executive Director shall be fixed by the Board 7
157	162		of Directors. The salary of the Executive Director and all staff and employees of the Agency shall 8
158	163		not be subject to any limitations imposed pursuant to any salary schedule adopted pursuant to the 9
159	164		terms of the North Carolina Human Resources Act. The Board of Directors shall, subject to the 10
160	165		approval of the Governor, elect and prescribe the duties of any other officers it finds necessary 11
161	166		or advisable, and the Board of Directors shall fix the compensation of these officers. 12
162	167		(h) The books and records of the Agency shall be maintained by the Agency and shall be 13
163	168		subject to periodic review and audit by the State. 14
164	169		(i) No part of the revenues or assets of the Agency shall inure to the benefit of or be 15
165	170		distributable to its members or officers or other private persons. The members of the Agency 16
166	171		shall receive no compensation for their services but shall be entitled to receive, from funds of the 17
167	172		Agency, for attendance at meetings of the Agency or any committee thereof and for other services 18
168	173		for the Agency reimbursement for such actual expenses as may be incurred for travel and 19
169	174		subsistence in the performance of official duties and such per diem as is allowed by law for 20
170	175		members of other State boards, commissions and committees. 21
171	176		(j) The Executive Director shall administer, manage and direct the affairs and business 22
172	177		of the Agency, subject to the policies, control and direction of the members of the Agency Board 23
173	178		of Directors. The Secretary of the Agency shall keep a record of the proceedings of the Agency 24
174	179		and shall be custodian of all books, documents and papers filed with the Agency, the minute book 25
175	180		or journal of the Agency and its official seal. The Secretary may have copies made of all minutes 26
176	181		and other records and documents of the Agency and may give certificates under the official seal 27
177	182		of the Agency to the effect that such copies are true copies, and all persons dealing with the 28
178	183		Agency may rely upon such certificates. 29
179	184		(k) Seven members of the Board of Directors of the Agency shall constitute a quorum 30
180	185		and the affirmative vote of a majority of the members present at a meeting of the Board of 31
181	186		Directors duly called and held shall be necessary for any action taken by the Board of Directors 32
182	187		of the Agency, except adjournment; provided, however, that the Board of Directors may appoint 33
183	188		an executive committee to act in behalf of said Board during the period between regular meetings 34
184	189		of said Board, and said committee shall have full power to act upon the vote of a majority of its 35
185	190		members. No vacancy in the membership of the Agency shall impair the rights of a quorum to 36
186	191		exercise all the rights and to perform all the duties of the Agency. 37
187	192		"§ 122F-5. General powers. 38
188	193		The Agency shall have all of the powers necessary or convenient to carry out the provisions 39
189	194		of this Chapter, including the power: 40
190	195		(1) To make or participate in the making of mortgage loans, construction loans, 41
191	196		and rehabilitation loans to licensed child care providers for rehabilitation and 42
192	197		construction; provided, however, that such loans shall be made only upon the 43
193	198		determination by the Agency that mortgage loans, construction loans, and 44
194	199		rehabilitation loans are not otherwise available wholly or in part from private 45
195	200		lenders upon reasonably equivalent terms and conditions. 46
196	201		(2) To collect and pay reasonable fees and charges in connection with making, 47
197	202		purchasing and servicing its loans, notes, bonds, commitments and other 48
198	203		evidences of indebtedness. 49
199	204		(3) To acquire on a temporary basis real property, or an interest therein, in its own 50
200	205		name, by purchase, transfer or foreclosure, where such acquisition is 51 General Assembly Of North Carolina Session 2025
201		-	~~Senate Bill 680-First Edition~~ Page 5
	206	+	DRS45337-TCa-6 Page 5
202	207		necessary or appropriate to protect any loan in which the Agency has an 1
203	208		interest and to sell, transfer and convey any such property to a buyer and, in 2
204	209		the event such sale, transfer or conveyance cannot be effected with reasonable 3
205	210		promptness or at a reasonable price, to rent or lease such property to a tenant 4
206	211		pending such sale, transfer or conveyance. 5
207	212		(4) To sell, at public or private sale, all or any part of any mortgage or other 6
208	213		instrument or document securing a loan of any type permitted by this Chapter. 7
209	214		(5) To procure insurance against any loss in connection with its operations in such 8
210	215		amounts, and from such insurers, as it may deem necessary or desirable. 9
211	216		(6) To consent, whenever it deems it necessary or desirable in the fulfillment of 10
212	217		its corporate purposes, to the modification of the rate of interest, time of 11
213	218		payment of any installment of principal or interest, or any other terms, of any 12
214	219		mortgage loan, mortgage loan commitment, construction loan, rehabilitation 13
215	220		loan, contract or agreement of any kind to which the Agency is a party. 14
216	221		(7) To borrow money as herein provided to carry out and effectuate its corporate 15
217	222		purposes and to issue its obligation as evidence of any such borrowing. 16
218	223		(8) To include in any borrowing such amounts as may be deemed necessary by 17
219	224		the Agency to pay financing charges, interest on the obligations for a period 18
220	225		not exceeding two years from their date, consultant, advisory and legal fees 19
221	226		and such other expenses as are necessary or incident to such borrowing. 20
222	227		(9) To make and publish rules and regulations respecting its lending programs 21
223	228		and such other rules and regulations as are necessary to effectuate its corporate 22
224	229		purposes. 23
225	230		(10) To provide technical and advisory services to sponsors, builders and 24
226	231		developers of child care facilities. 25
227	232		(11) To promote research and development in scientific methods of constructing 26
228	233		low-cost child care facilities of high durability and improved safety and utility. 27
229	234		(12) To service or contract for the servicing of mortgage loans, construction loans, 28
230	235		and rehabilitation loans, and to make and execute agreements, contracts and 29
231	236		other instruments necessary or convenient in the exercise of the powers and 30
232	237		functions of the Agency under this Chapter, including contracts with any 31
233	238		person, firm, corporation, governmental agency or other entity, and each and 32
234	239		any North Carolina governmental agency is hereby authorized to enter into 33
235	240		contracts and otherwise cooperate with the Agency to facilitate the purposes 34
236	241		of this Chapter. 35
237	242		(13) To receive, administer and comply with the conditions and requirements 36
238	243		respecting any appropriation or any gift, grant or donation of any property or 37
239	244		money, including the proceeds of general obligation bonds of the State. 38
240	245		(14) To sue and be sued in its own name, plead and be impleaded. 39
241	246		(15) To establish and maintain an office for the transaction of its business in the 40
242	247		City of Raleigh and at such place or places as the board of directors deems 41
243	248		advisable or necessary in carrying out the purposes of this Chapter. 42
244	249		(16) To adopt an official seal and alter the same at pleasure. 43
245	250		(17) To adopt bylaws for the regulation of its affairs and the conduct of its business 44
246	251		and to prescribe rules, regulations and policies in connection with the 45
247	252		performance of its functions and duties. 46
248	253		(18) To employ fiscal consultants, engineers, attorneys, real estate counselors, 47
249	254		appraisers and such other consultants and employees as may be required in 48
250	255		the judgment of the Agency and to fix and pay their compensation from funds 49
251	256		available to the Agency therefor. 50 General Assembly Of North Carolina Session 2025
252		-	Page 6 ~~Senate Bill 680-First Edition~~
	257	+	Page 6 DRS45337-TCa-6
253	258		(19) To purchase or to participate in the purchase and enter into commitments by 1
254	259		itself or together with others for the purchase of federally insured securities; 2
255	260		provided, however, that the Agency shall first determine that the proceeds of 3
256	261		such securities will be utilized for the purpose of making new mortgage loans 4
257	262		to licensed child care providers, all as specified in regulations to be adopted 5
258	263		by the Agency. 6
259	264		(20) To advise the Governor regarding the coordination of child care facilities. 7
260	265		(21) To acquire, hold, rent, encumber, transfer, convey, and otherwise deal with 8
261	266		real property and utilities in the same manner as a private person or 9
262	267		corporation, subject only to the approval of the Governor and Council of State. 10
263	268		The Board of Directors may pledge or encumber income and assets of the 11
264	269		Agency to secure financing for real property. 12
265	270		(22) To select and retain, subject to the approval of the Local Government 13
266	271		Commission, the financial consultants, underwriters, and bond attorneys to be 14
267	272		associated with the issuance of any bonds and to pay for services rendered by 15
268	273		underwriters, financial consultants, or bond attorneys out of the proceeds of 16
269	274		any such issue with regard to which the services were performed. 17
270	275		"§ 122F-6. Rules and regulations governing Agency activity. 18
271	276		(a) The Agency shall from time to time adopt, modify or repeal rules and regulations 19
272	277		governing the purchase of federally insured securities by the Agency and the purchase and sale 20
273	278		of mortgage loans, construction loans, and rehabilitation loans and the application of the proceeds 21
274	279		thereof, including rules and regulations as to any or all of the following: 22
275	280		(1) Procedures for the submission of requests or the invitation of proposals for the 23
276	281		purchase and sale of mortgage loans, construction loans, rehabilitation loans, 24
277	282		or for the purchase of federally insured securities. 25
278	283		(2) Limitations or restrictions as to the number, location, or other qualifications 26
279	284		or characteristics of child care facilities to be financed by mortgage loans, 27
280	285		construction loans, and rehabilitation loans. 28
281	286		(3) Restrictions as to the interest rates on mortgage loans, construction loans, and 29
282	287		rehabilitation loans or the return which may be realized by lenders on any 30
283	288		mortgage loans, construction loans, and rehabilitation loans, or on the sale of 31
284	289		federally insured securities to the Agency. 32
285	290		(4) Requirements as to commitments by lenders with respect to the use of the 33
286	291		proceeds of sale of any federally insured securities. 34
287	292		(5) Schedules of any fees and charges necessary to provide for expenses and 35
288	293		reserves of the Agency. 36
289	294		(6) Any other matters related to the duties and the exercise of the powers of the 37
290	295		Agency to purchase and sell mortgage loans, construction loans, and 38
291	296		rehabilitation loans or to purchase federally insured securities. 39
292	297		Such rules and regulations shall be designed to effectuate the general purposes of this Chapter 40
293	298		and the following specific objectives: (i) the construction of decent, safe and sanitary full day 41
294	299		child care facilities; (ii) the rehabilitation of present child care facilities; (iii) increasing the supply 42
295	300		and access to affordable child care for all families, regardless of income level; (iv) the 43
296	301		encouraging of private enterprise and investment to sponsor, build and rehabilitate child care 44
297	302		facilities; and (v) the restriction of the financial return and benefit to that necessary to protect 45
298	303		against the realization by lenders of an excessive financial return or benefit as determined by 46
299	304		prevailing market conditions. 47
300	305		(b) The interest rate or rates and other terms of federally insured securities or mortgage 48
301	306		loans, construction loans, and rehabilitation loans purchased from the proceeds of any issue of 49
302	307		bonds of the Agency shall be at least sufficient to assure the payment of said bonds and the 50 General Assembly Of North Carolina Session 2025
303		-	~~Senate Bill 680-First Edition~~ Page 7
	308	+	DRS45337-TCa-6 Page 7
304	309		interest thereon as the same become due from the amounts received by the Agency in repayment 1
305	310		of such federally insured securities or such loans and interest thereon. 2
306	311		(c) The Agency shall provide that mortgage loans, construction loans, and rehabilitation 3
307	312		loans are forgivable in full after 15 years if the licensed child care provider (i) serves at least 4
308	313		twenty-five (25%) more children than when the loan was received, and (ii) at least fifty percent 5
309	314		(50%) of the children served by the child care facility receive a child care subsidy. 6
310	315		(d) The Agency shall require as a condition of the purchase of federally insured securities 7
311	316		from a mortgage lender and the purchase or the making of a commitment to purchase mortgage 8
312	317		loans from a mortgage lender where the Agency has not given its approval prior to the initial 9
313	318		making of the mortgage loan that such mortgage lender shall on or prior to the 10
314	319		one-hundred-eightieth day (or such earlier day as may be prescribed by rules and regulations of 11
315	320		the Agency) following the receipt of the sale proceeds have entered into written commitments to 12
316	321		make, and shall thereafter proceed as promptly as practicable to make from such sale proceeds, 13
317	322		new mortgage loans with respect to child care facilities in the State having a stated maturity of 14
318	323		not less than 20 years from the date thereof in an aggregate principal amount equal to the amount 15
319	324		of such sale proceeds. The Agency shall not purchase nor make commitment to purchase 16
320	325		mortgage loans, federally insured securities or other obligations from a mortgage lender from 17
321	326		which it has previously purchased federally insured securities or mortgage loans initially made 18
322	327		without such prior approval unless said mortgage lender has either made or entered into written 19
323	328		commitments to make such new mortgage loans. 20
324	329		"§ 122F-7. Mortgage insurance authority. 21
325	330		(a) The Agency may upon application of a proposed mortgagee insure and make advance 22
326	331		commitments to insure payments required by a loan for child care facilities upon such terms and 23
327	332		conditions as the Agency may prescribe. Mortgage loans insured by the Agency under this 24
328	333		Chapter may provide financing for related ancillary facilities to the extent permitted by applicable 25
329	334		Agency regulations. Mortgage loans insured by the Agency under this Chapter shall be secured 26
330	335		by a first mortgage. 27
331	336		The aggregate principal amount of all mortgages so insured by the Agency under this Chapter 28
332	337		and outstanding at any one time shall not exceed 10 times the average annual balance for the 29
333	338		preceding calendar year of funds on deposit in the child care mortgage insurance fund, the 30
334	339		creation of which is hereby authorized. The aggregate amount of principal obligations of all 31
335	340		mortgages so insured shall not be deemed to constitute a debt, liability or obligation of the State 32
336	341		or of any political subdivision thereof or a pledge of the faith and credit of the State or of any 33
337	342		such political subdivision, but shall be payable solely from moneys on deposit to the credit of the 34
338	343		child care mortgage insurance fund. Any contract of insurance executed by the Agency under 35
339	344		this section shall be conclusive evidence of eligibility for such mortgage insurance and the 36
340	345		validity of any contract of insurance so executed or of an advance commitment to issue such shall 37
341	346		be incontestable in the hands of a mortgagee from the date of execution of such contract or 38
342	347		commitment, except for fraud or misrepresentation on the part of such mortgagee and, as to 39
343	348		commitments to insure, noncompliance with the terms of the advance commitment or Agency 40
344	349		regulations in force at the time of issuance of the advance commitment. 41
345	350		(b) For mortgage payments to be eligible for insurance under the provisions of this 42
346	351		Chapter, the underlying mortgage loan shall: 43
347	352		(1) Be one which is made and held by a mortgagee approved by the Agency as 44
348	353		responsible and able to service the mortgage properly. 45
349	354		(2) Not exceed (i) ninety percent (90%) of the estimated cost of the proposed child 46
350	355		care facility. 47
351	356		(3) Have a maturity satisfactory to the Agency but in no case longer than eighty 48
352	357		percent (80%) of the Agency's estimate of the remaining useful life of said 49
353	358		child care facility or 40 years from the date of the issuance of insurance, 50
354	359		whichever is earlier. 51 General Assembly Of North Carolina Session 2025
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356	361		(4) Contain amortization provisions satisfactory to the Agency requiring periodic 1
357	362		payments by the mortgagor not in excess of the ability to pay as determined 2
358	363		by the Agency. 3
359	364		(5) Be in such form and contain such terms and provisions with respect to 4
360	365		maturity, property insurance, repairs, alterations, payment of taxes and 5
361	366		assessments, default reserves, delinquency charges, default remedies, 6
362	367		anticipation of maturity, additional and secondary liens, equitable and legal 7
363	368		redemption rights, prepayment privileges and other matters as the Agency 8
364	369		may prescribe. 9
365	370		(c) All applications for mortgage insurance shall be forwarded, together with an 10
366	371		application fee prescribed by the Agency, to the executive director of the Agency. The Agency 11
367	372		shall cause an investigation of the proposed project to be made, review the application and the 12
368	373		report of the investigation, and approve or deny the application. No application shall be approved 13
369	374		unless the Agency finds that it is consistent with the purposes of this Chapter and further finds 14
370	375		that the financing plan for the proposed project is sound. The Agency shall notify the applicant 15
371	376		and the proposed lender of its decision. Any such approval shall be conditioned upon payment 16
372	377		to the Agency, within such reasonable time and after notification of approval as may be specified 17
373	378		by the Agency, of the commitment fee prescribed by the Agency. 18
374	379		(d) The Agency shall fix mortgage insurance premiums for the insurance of mortgage 19
375	380		payments under the provision of this Chapter. Such premiums shall be computed as a percentage 20
376	381		of the principal of the mortgage outstanding at the beginning of each mortgage year, but shall not 21
377	382		be more than one half of one percent (1/2 of 1%) per year of such principal amount. The amount 22
378	383		of premium need not be uniform for all insured loans. Such premiums shall be payable by 23
379	384		mortgagors or mortgagees in such manner as prescribed by the Agency. 24
380	385		(e) In the event of default by the mortgagor, the mortgagee shall notify the Agency both 25
381	386		of the default and the mortgagee's proposed course of action. When it appears feasible, the 26
382	387		Agency may for a temporary period upon default or threatened default by the mortgagor authorize 27
383	388		mortgage payments to be made by the Agency to the mortgagee which payments shall be repaid 28
384	389		under such conditions as the Agency may prescribe. The Agency may also agree to revised terms 29
385	390		of financing when such appear prudent. The mortgagee shall be entitled to receive the benefits 30
386	391		of the insurance provided herein upon: 31
387	392		(1) Any sale of the mortgaged property by court order in foreclosure or a sale with 32
388	393		the consent of the Agency by the mortgagor or a subsequent owner of the 33
389	394		property or by the mortgagee after foreclosure or acquisition by deed in lieu 34
390	395		of foreclosure, provided all claims of the mortgagee against the mortgagor or 35
391	396		others arising from the mortgage, foreclosure, or any deficiency judgment 36
392	397		shall be assigned to the Agency without recourse except such claims as may 37
393	398		have been released with the consent of the Agency; or 38
394	399		(2) The expiration of six months after the mortgagee has taken title to the 39
395	400		mortgaged property under judgment of strict foreclosure, foreclosure by sale 40
396	401		or other judicial sale, or under a deed in lieu of foreclosure if during such 41
397	402		period the mortgagee has made a bona fide attempt to sell the property, and 42
398	403		thereafter conveys the property to the Agency with an assignment, without 43
399	404		recourse, to the Agency of all claims of the mortgagee against the mortgagor 44
400	405		or others arising out of the mortgage foreclosure, or deficiency judgment; or 45
401	406		(3) The acceptance by the Agency of title to the property or an assignment of the 46
402	407		mortgage, without recourse to the Agency, in the event the Agency determines 47
403	408		it imprudent to proceed under (1) or (2) above. 48
404	409		Upon the occurrence of either (1), (2) or (3) hereof, the obligation of the mortgagee to pay 49
405	410		premium charges for insurance shall cease, and the Agency shall, within 30 days thereafter, pay 50
406	411		to the mortgagee ninety-eight percent (98%) of the sum of (i) the then unpaid principal balance 51 General Assembly Of North Carolina Session 2025
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	412	+	DRS45337-TCa-6 Page 9
408	413		of the insured indebtedness, (ii) the unpaid interest to the date of conveyance or assignment to 1
409	414		the Agency, as the case may be, (iii) the amount of all payments made by the mortgagee for 2
410	415		which it has not been reimbursed for taxes, insurance, assessments and mortgage insurance 3
411	416		premiums, and (iv) such other necessary fees, costs or expenses of the mortgagee as may be 4
412	417		approved by the Agency. 5
413	418		(f) Upon request of the mortgagee, the Agency may at any time, under such terms and 6
414	419		conditions as it may prescribe, consent to the release of the mortgagor from the mortgagor's 7
415	420		liability or consent to the release of parts of the property from the lien of the mortgage, or approve 8
416	421		a substitute mortgagor or sale of the property or part thereof. 9
417	422		(g) No claim for the benefit of the insurance provided in this Chapter shall be accepted 10
418	423		by the Agency except within one year after any sale or acquisition of title of the mortgaged 11
419	424		premises described in subdivisions (1) or (2) of subsection (e) of this section. 12
420	425		(h) There shall be paid into the child care mortgage insurance fund (i) all premiums 13
421	426		received by the Agency for the granting of such mortgage insurance, (ii) any moneys or other 14
422	427		assets received by the Agency as a result of default or delinquency on mortgage loans insured by 15
423	428		the Agency, including any proceeds from the sale or lease of real property, (iii) any moneys 16
424	429		appropriated and made available by the State for the purpose of such fund. 17
425	430		"§ 122F-8. Terms and conditions of loans to and by lenders. 18
426	431		(a) The Agency shall from time to time adopt, modify, amend or repeal rules and 19
427	432		regulations governing the making of loans to lenders and the application of the proceeds thereof. 20
428	433		These rules and regulations shall be designed to effectuate the general purposes of this Chapter 21
429	434		and the following specific objectives: (i) the construction and renovation of decent, safe and 22
430	435		sanitary child care facilities; (ii) the encouragement of private enterprise and investment to 23
431	436		sponsor, build and renovate child care facilities; (iii) the increase in the supply and access to 24
432	437		affordable child care for all families, regardless of income level; and (iv) the restriction of the 25
433	438		financial return and benefit to the mortgage lenders from such loans to an amount that is 26
434	439		necessary to induce their participation and that is not excessive as determined by prevailing 27
435	440		market conditions. 28
436	441		(b) Notwithstanding any other provision of this section, the interest rate or rates and other 29
437	442		terms of the loans to lenders made from the proceeds of any issue of bonds of the Agency shall 30
438	443		provide that the amounts received by the Agency in repayment of the loans and interest thereon 31
439	444		shall be at least sufficient to assure the payment of the principal of and the interest on the bonds 32
440	445		as they become due. 33
441	446		(c) The Agency shall enter into a written agreement with each lender that shall require as 34
442	447		a condition of each loan to such lender that the lender shall originate new mortgage loans, 35
443	448		construction loans, and rehabilitation loans within a reasonable period of time as determined by 36
444	449		the Agency's rules and regulations and that such new loans shall have such stated maturities as 37
445	450		determined by the Agency's rules and regulations. 38
446	451		(d) The loans to lenders shall be general obligations of the respective lenders owing them. 39
447	452		The Agency shall require that such loans shall be secured as to payment of both principal and 40
448	453		interest by a pledge and lien upon collateral security. The collateral security itself shall be in such 41
449	454		amount as the Agency determines will assure the payment of the principal of and the interest on 42
450	455		the bonds as they become due. Collateral security shall be deemed to be sufficient if the principal 43
451	456		of and the interest on the collateral security, when due, will be sufficient to pay the principal of 44
452	457		and the interest on the bonds. The collateral security shall consist of any of the following items: 45
453	458		(i) direct obligations of, or obligations guaranteed by, the State or the United States of America; 46
454	459		(ii) bonds, debentures, notes or other evidences of indebtedness, satisfactory to the Agency, 47
455	460		issued by any of the following federal agencies: Bank for Cooperatives, Federal Intermediate 48
456	461		Credit Bank, Export-Import Bank of Washington, Federal Land Banks, the Government National 49
457	462		Mortgage Association; (iii) direct obligations of or obligations guaranteed by the State; (iv) 50
458	463		mortgages insured or guaranteed by the United States of America or an instrumentality of it as 51 General Assembly Of North Carolina Session 2025
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460	465		to payment of principal and interest; (v) any other mortgages secured by real estate on which 1
461	466		there is located a commercial structure, the collateral value of which shall be determined by the 2
462	467		regulations issued from time to time by the Agency; (vii) certificates of deposit of banks or trust 3
463	468		companies, including the trustee, organized under the laws of the United States or any state, 4
464	469		which have a combined capital and surplus of at least fifteen million dollars ($15,000,000); (viii) 5
465	470		Bankers Acceptances; and (ix) commercial paper that has been classified for rating purposes by 6
466	471		Dun & Bradstreet, Inc., as Prime-1 or by Standard & Poor's Corp. as A-1. 7
467	472		(e) The Agency may require as a condition of any loan to a lender such representations 8
468	473		and warranties that it determines to be necessary to secure such loans and to carry out the 9
469	474		purposes of this section. 10
470	475		"§ 122F-9. Credit of State not pledged. 11
471	476		Obligations issued under the provisions of this Chapter shall not be deemed to constitute a 12
472	477		debt, liability or obligation of the State or of any political subdivision thereof or a pledge of the 13
473	478		faith and credit of the State or of any such political subdivision, but shall be payable solely from 14
474	479		the revenues or assets of the Agency. Each obligation issued under this Chapter shall contain on 15
475	480		the face thereof a statement to the effect that the Agency shall not be obligated to pay the same 16
476	481		nor the interest thereon except from the revenues or assets pledged therefor and that neither the 17
477	482		faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged 18
478	483		to the payment of the principal of or the interest on such obligation. 19
479	484		Expenses incurred by the Agency in carrying out the provisions of this Chapter may be made 20
480	485		payable from funds provided pursuant to this Chapter and no liability shall be incurred by the 21
481	486		Agency hereunder beyond the extent to which moneys shall have been so provided. 22
482	487		"§ 122F-10. Bonds and notes. 23
483	488		The Agency is hereby authorized to provide for the issuance, at one time or from time to time, 24
484	489		of bonds and notes of the Agency to carry out and effectuate its corporate purposes. The Agency 25
485	490		also is hereby authorized to provide for the issuance, at one time or from time to time of (i) bond 26
486	491		anticipation notes in anticipation of the issuance of such bonds and (ii) construction loan notes 27
487	492		to finance the making or purchase of mortgage loans, construction loans, and rehabilitation loans, 28
488	493		for the construction, rehabilitation or improvement of child care facilities. The total amount of 29
489	494		bonds, bond anticipation notes, and construction loan notes outstanding at any one time shall not 30
490	495		exceed twelve billion dollars ($12,000,000,000) excluding therefrom any bond anticipation notes 31
491	496		for the payment of which bonds have been issued. The principal of and the interest on such bonds 32
492	497		or notes shall be payable solely from the funds herein provided for such payment. Any such notes 33
493	498		may be made payable from the proceeds of bonds or renewal notes or, in the event bond or 34
494	499		renewal note proceeds are not available, such notes may be paid from any available revenues or 35
495	500		assets of the Agency. The bonds or notes of each issue shall be dated and may be made 36
496	501		redeemable before maturity at the option of the Agency at such price or prices and under such 37
497	502		terms and conditions as may be determined by the Agency. Any such bonds or notes shall bear 38
498	503		interest at such rate or rates as may be determined by the Local Government Commission of 39
499	504		North Carolina with the approval of the Agency. Notes shall mature at such time or times not 40
500	505		exceeding 10 years from their date or dates and bonds shall mature at such time or times not 41
501	506		exceeding 43 years from their date or dates, as may be determined by the Agency. The Agency 42
502	507		shall determine the form and manner of execution of the bonds or notes, including any interest 43
503	508		coupons to be attached thereto, and shall fix the denomination or denominations and the place or 44
504	509		places of payment of principal and interest, which may be any bank or trust company within or 45
505	510		without the State. In case any officer whose signature or a facsimile of whose signature shall 46
506	511		appear on any bonds or notes or coupons attached thereto shall cease to be such officer before 47
507	512		the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient 48
508	513		for all purposes the same as if that officer had remained in office until such delivery. The Agency 49
509	514		may also provide for the authentication of the bonds or notes by a trustee or fiscal agent. The 50
510	515		bonds or notes may be issued in coupon or in registered form, or both, as the Agency may 51 General Assembly Of North Carolina Session 2025
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512	517		determine, and provision may be made for the registration of any coupon bonds or notes as to 1
513	518		principal alone and also as to both principal and interest, and for the reconversion into coupon 2
514	519		bonds or notes of any bonds or notes registered as to both principal and interest, and for the 3
515	520		interchange of registered and coupon bonds or notes. Upon the filing with the Local Government 4
516	521		Commission of North Carolina of a resolution of the Agency requesting that its bonds and notes 5
517	522		be sold, such bonds or notes may be sold in such manner, either at public or private sale, and for 6
518	523		such price as the Commission shall determine to be for the best interest of the Agency and best 7
519	524		effectuate the purposes of this Chapter, as long as the sale is approved by the Agency. 8
520	525		The proceeds of any bonds or notes shall be used solely for the purposes for which issued 9
521	526		and shall be disbursed in such manner and under such restrictions, if any, as the Agency may 10
522	527		provide in the resolution authorizing the issuance of such bonds or notes or in the trust agreement 11
523	528		hereinafter mentioned securing the same. 12
524	529		Prior to the preparation of definitive bonds, the Agency may, under like restrictions, issue 13
525	530		interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds 14
526	531		when such bonds shall have been executed and are available for delivery. The Agency may also 15
527	532		provide for the replacement of any bonds or notes which shall become mutilated or shall be 16
528	533		destroyed or lost. 17
529	534		Bonds or notes may be issued under the provisions of this Chapter without obtaining, except 18
530	535		as otherwise expressly provided in this Chapter, the consent of any department, division, 19
531	536		commission, board, body, bureau or agency of the State, and without any other proceedings or 20
532	537		the happening of any conditions or things other than those proceedings, conditions or things 21
533	538		which are specifically required by this Chapter and the provisions of the resolution authorizing 22
534	539		the issuance of such bonds or notes or the trust agreement securing the same. 23
535	540		"§ 122F-11. Trust agreement or resolution. 24
536	541		In the discretion of the Agency any obligations issued under the provisions of this Chapter 25
537	542		may be secured by a trust agreement by and between the Agency and a corporate trustee, which 26
538	543		may be any trust company or bank having the powers of a trust company within or without the 27
539	544		State. Such trust agreement or the resolution providing for the issuance of such obligations may 28
540	545		pledge or assign all or any part of the revenues or assets of the Agency, including, without 29
541	546		limitation, mortgage loans, construction loans, rehabilitation loans, mortgage loan commitments, 30
542	547		contracts, agreements and other security or investment obligations, the fees or charges made or 31
543	548		received by the Agency, the moneys received in payment of loans and interest thereon and any 32
544	549		other moneys received or to be received by the Agency. Such trust agreement or resolution may 33
545	550		contain such provisions for protecting and enforcing the rights and remedies of the holders of 34
546	551		any such obligations as may be reasonable and proper and not in violation of law, including 35
547	552		covenants setting forth the duties of the Agency in relation to the purposes to which obligation 36
548	553		proceeds may be applied, the disposition or pledging of the revenues or assets of the Agency, the 37
549	554		terms and conditions for the issuance of additional obligations, and the custody, safeguarding 38
550	555		and application of all moneys. It shall be lawful for any bank or trust company incorporated under 39
551	556		the laws of the State which may act as depositary of the proceeds of obligations, revenues or 40
552	557		other money hereunder to furnish such indemnifying bonds or to pledge such securities as may 41
553	558		be required by the Agency. Any such trust agreement or resolution may set forth the rights and 42
554	559		remedies of the holders of any obligations and of the trustee, and may restrict the individual right 43
555	560		of action by any such holders. In addition to the foregoing, any such trust agreement or resolution 44
556	561		may contain such other provisions as the Agency may deem reasonable and proper for the 45
557	562		security of the holders of any obligations. All expenses incurred in carrying out the provisions of 46
558	563		such trust agreement or resolution may be paid from the revenues or assets pledged or assigned 47
559	564		to the payment of the principal of and the interest on obligations or from any other funds available 48
560	565		to the Agency. 49
561	566		"§ 122F-12. Validity of any pledge. 50 General Assembly Of North Carolina Session 2025
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	567	+	Page 12 DRS45337-TCa-6
563	568		The pledge of any assets or revenues of the Agency to the payment of the principal of or the 1
564	569		interest on any obligations of the Agency shall be valid and binding from the time when the 2
565	570		pledge is made and any such assets or revenues shall immediately be subject to the lien of such 3
566	571		pledge without any physical delivery thereof or further act, and the lien of any such pledge shall 4
567	572		be valid and binding as against all parties having claims of any kind in tort, contract or otherwise 5
568	573		against the Agency, irrespective of whether such parties have notice thereof. Nothing herein shall 6
569	574		be construed to prohibit the Agency from selling any assets subject to any such pledge except to 7
570	575		the extent that any such sale may be restricted by the trust agreement or resolution providing for 8
571	576		the issuance of such obligations. 9
572	577		"§ 122F-13. Trust funds. 10
573	578		Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to 11
574	579		the authority of this Chapter shall be deemed to be trust funds to be held and applied solely as 12
575	580		provided in this Chapter. The resolution authorizing any obligations or the trust agreement 13
576	581		securing the same may provide that any of such moneys may be temporarily invested pending 14
577	582		the disbursement thereof and shall provide that any officer with whom, or any bank or trust 15
578	583		company with which, such moneys shall be deposited shall act as trustee of such moneys and 16
579	584		shall hold and apply the same for the purposes hereof, subject to such regulations as this Chapter 17
580	585		and such resolution or trust agreement may provide. 18
581	586		Any moneys received pursuant to the authority of this Chapter and any other moneys 19
582	587		available to the Agency for investment may be invested: 20
583	588		(1) As provided in G.S. 159-30, except that for purposes of G.S. 159-30(b) the 21
584	589		Agency may deposit moneys at interest in banks or trust companies outside as 22
585	590		well as in this State, as long as any moneys at deposit outside this State are 23
586	591		collateralized to the same extent and manner as if at deposit in this State. 24
587	592		(2) In evidences of ownership of, or fractional undivided interests in, future 25
588	593		interest and principal payments on either direct obligations of the United 26
589	594		States government or obligations the principal of and the interest on which are 27
590	595		guaranteed by the United States government, which obligations are held by a 28
591	596		bank or trust company organized and existing under the laws of the United 29
592	597		States of America or any state in the capacity of custodian. 30
593	598		(3) In repurchase agreements with respect to (i) direct obligations of the United 31
594	599		States government, (ii) obligations the principal of and the interest on which 32
595	600		are guaranteed by the United States government, or (iii) obligations described 33
596	601		in G.S. 159-30(c)(2), (3), (6), or (7), if all of the following conditions are met: 34
597	602		a. The repurchase agreement is entered into with an institution whose 35
598	603		ability to pay its unsecured long-term obligations (including, if the 36
599	604		institution is an insurance company, its claims paying ability) is rated 37
600	605		in one of the two highest ratings categories by a nationally recognized 38
601	606		securities rating agency. If the term of the repurchase agreement is for 39
602	607		a period of one year or less, however, the repurchase agreement may 40
603	608		be entered into with an institution that does not have such a long-term 41
604	609		rating if its ability to pay its unsecured short-term obligations is rated 42
605	610		in one of the two highest ratings categories by a nationally recognized 43
606	611		securities rating agency. If the institution with which the agreement is 44
607	612		to be entered does not meet the ratings requirement of this 45
608	613		subparagraph, the repurchase agreement may nevertheless be entered 46
609	614		into with the institution if the obligations of the institution under the 47
610	615		repurchase agreement are fully guaranteed by another institution that 48
611	616		does meet the ratings requirement of this subparagraph. 49
612	617		b. The repurchase agreement provides that it shall be terminated, without 50
613	618		penalty, if the institution with which the repurchase agreement is 51 General Assembly Of North Carolina Session 2025
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	619	+	DRS45337-TCa-6 Page 13
615	620		entered or by whom the institution's obligations are guaranteed fails to 1
616	621		maintain (i) in the event that the repurchase agreement was entered 2
617	622		into in reliance upon the rating of the institution's long-term 3
618	623		obligations, a rating of its long-term obligations in one of the three 4
619	624		highest ratings categories by at least one nationally recognized 5
620	625		securities rating agency, or (ii) in the event that the repurchase 6
621	626		agreement was entered into in reliance upon the rating of the 7
622	627		institution's short-term obligations, a rating of its short-term 8
623	628		obligations in one of the two highest ratings categories by at least one 9
624	629		nationally recognized securities rating agency. The repurchase 10
625	630		agreement does not have to be terminated, however, if a new guarantor 11
626	631		meeting the rating requirement set forth in subparagraph a. as the 12
627	632		requirement necessary for the Agency to enter the repurchase 13
628	633		agreement agrees to fully guarantee the obligations of the institution 14
629	634		under the repurchase agreement. 15
630	635		c. The obligations that are subject to the repurchase agreement are 16
631	636		delivered (in physical or in book entry form) to the Agency, or any 17
632	637		financial institution serving either as trustee for obligations issued by 18
633	638		the Agency or as fiscal agent for the Agency or the State Treasurer or 19
634	639		are supported by a safekeeping receipt issued by a depository 20
635	640		satisfactory to the Agency. The repurchase agreement must provide 21
636	641		that the value of the underlying obligations shall be maintained at a 22
637	642		current market value, calculated at least daily, of not less than one 23
638	643		hundred percent (100%) of the repurchase price. The financial 24
639	644		institution serving either as trustee or as fiscal agent for the Agency 25
640	645		holding the obligations subject to the repurchase agreement hereunder 26
641	646		or the depository issuing the safekeeping receipt shall not be the 27
642	647		provider of the repurchase agreement. 28
643	648		d. A valid and perfected first security interest in the obligations which 29
644	649		are the subject of the repurchase agreement has been granted to the 30
645	650		Agency or its assignee or book entry procedures, conforming, to the 31
646	651		extent practicable, with federal regulations and satisfactory to the 32
647	652		agency have been established for the benefit of the Agency or its 33
648	653		assignee. 34
649	654		e. The securities are free and clear of any adverse third-party claims. 35
650	655		f. The repurchase agreement is in a form satisfactory to the Agency. 36
651	656		"§ 122F-14. Remedies. 37
652	657		Any holder of obligations issued under the provisions of this Chapter or any coupons 38
653	658		appertaining thereto, and the trustee under any trust agreement or resolution authorizing the 39
654	659		issuance of such obligations, except to the extent the rights herein given may be restricted by 40
655	660		such trust agreement or resolution, may, either at law or in equity, by suit, action, mandamus or 41
656	661		other proceeding, protect and enforce any and all rights under the laws of the State or granted 42
657	662		hereunder or under such trust agreement or resolution, or under any other contract executed by 43
658	663		the Agency pursuant to this Chapter, and may enforce and compel the performance of all duties 44
659	664		required by this Chapter or by such trust agreement or resolution to be performed by the Agency 45
660	665		or by any officer thereof. 46
661	666		"§ 122F-15. Negotiable instruments. 47
662	667		Notwithstanding any of the foregoing provisions of this Chapter or any recitals in any 48
663	668		obligations issued under the provisions of this Chapter, all such obligations and interest coupons 49
664	669		appertaining thereto shall be and are hereby made negotiable instruments under the laws of this 50
665	670		State, subject only to any applicable provisions for registration. 51 General Assembly Of North Carolina Session 2025
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	671	+	Page 14 DRS45337-TCa-6
667	672		"§ 122F-16. Obligations eligible for investment. 1
668	673		Obligations issued under the provisions of this Chapter are hereby made securities in which 2
669	674		all public officers and public bodies of the State and its political subdivisions, all insurance 3
670	675		companies, trust companies, banking associations, investment companies, executors, 4
671	676		administrators, trustees and other fiduciaries may properly and legally invest funds, including 5
672	677		capital in their control or belonging to them. Such obligations are hereby made securities which 6
673	678		may properly and legally be deposited with and received by any State or municipal officer or any 7
674	679		agency or political subdivision of the State for any purpose for which the deposit of bonds, notes 8
675	680		or obligations of the State is now or may hereafter be authorized by law. 9
676	681		"§ 122F-17. Refunding obligations. 10
677	682		The Agency is hereby authorized to provide for the issuance of refunding obligations for the 11
678	683		purpose of refunding any obligations then outstanding which shall have been issued under the 12
679	684		provisions of this Chapter, including the payment of any redemption premium thereon and any 13
680	685		interest accrued or to accrue to the date of redemption of such obligations and, if deemed 14
681	686		advisable by the Agency, for any corporate purpose of the Agency. The issuance of such 15
682	687		obligations, the maturities and other details thereof, the rights of the holders thereof, and the 16
683	688		rights, duties and obligations of the Agency in respect of the same shall be governed by the 17
684	689		provisions of this Chapter which relate to the issuance of obligations, insofar as such provisions 18
685	690		may be appropriate therefor. 19
686	691		Refunding obligations may be sold or exchanged for outstanding obligations issued under 20
687	692		this Chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized 21
688	693		purposes, to the purchase, redemption or payment of such outstanding obligations. Pending the 22
689	694		application of the proceeds of any such refunding obligations, with any other available funds, to 23
690	695		the payment of the principal, accrued interest and any redemption premium on the obligations 24
691	696		being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such 25
692	697		refunding obligations or in the trust agreement securing the same, to the payment of any interest 26
693	698		on such refunding obligations and any expenses in connection with such refunding, such 27
694	699		proceeds may be invested in direct obligations of, or obligations the principal of and the interest 28
695	700		on which are unconditionally guaranteed by, the United States of America which shall mature or 29
696	701		which shall be subject to redemption by the holders thereof, at the option of such holders, not 30
697	702		later than the respective dates when the proceeds, together with the interest accruing thereon, will 31
698	703		be required for the purposes intended. 32
699	704		"§ 122F-18. Oversight by committees of General Assembly; annual report; audit; 33
700	705		construction of Chapter. 34
701	706		(a) Oversight. – The Finance Committee of the House of Representatives, the Finance 35
702	707		Committee of the Senate, and the Joint Legislative Oversight Committee on Health and Human 36
703	708		Services shall exercise continuing oversight of the Agency in order to assure that the Agency is 37
704	709		effectively fulfilling its statutory purpose. 38
705	710		(b) Comprehensive Report. – The Agency shall, on or before February 15 of each year, 39
706	711		submit an annual comprehensive report of its activities for the preceding year to the Governor, 40
707	712		the Office of State Budget and Management, State Auditor, the Local Government Commission, 41
708	713		the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal 42
709	714		Research Division. The comprehensive report required under this subsection shall include at least 43
710	715		all of the following: 44
711	716		(1) The goals and objectives of the program administered by the Agency. 45
712	717		(2) The number and types of activities funded by the Agency. 46
713	718		(c) Audit. – The Agency shall cause an audit of its books and accounts to be made at least 47
714	719		once in each year by an independent certified public accountant and the cost thereof may be paid 48
715	720		from any available moneys of the Agency. 49
716	721		(d) Construction. – Nothing in this Chapter shall be construed as requiring the Agency to 50
717	722		receive legislative approval for the exercise of any of the powers granted by this Chapter. 51 General Assembly Of North Carolina Session 2025
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	723	+	DRS45337-TCa-6 Page 15
719	724		"§ 122F-19. Officers not liable. 1
720	725		No member or other officer of the Agency shall be subject to any personal liability or 2
721	726		accountability by reason of his execution of any obligations or the issuance thereof. 3
722	727		"§ 122F-20. Authorization to accept appropriated moneys. 4
723	728		The Agency is authorized to accept such moneys as may be appropriated from time to time 5
724	729		by the General Assembly for effectuating its corporate purposes including, without limitation, 6
725	730		the payment of the initial expenses of administration and operation and the establishment of a 7
726	731		reserve or contingency fund to be available for the payment of the principal of and the interest 8
727	732		on any bonds or notes of the Agency. 9
728	733		"§ 122F-21. Tax exemption. 10
729	734		The exercise of the powers granted by this Chapter will be in all respects for the benefit of 11
730	735		the people of the State, for their well-being and prosperity and for the improvement of their social 12
731	736		and economic conditions, and the Agency shall not be required to pay any tax or assessment on 13
732	737		any property owned by the Agency under the provisions of this Chapter or upon the income 14
733	738		therefrom. 15
734	739		Any obligations issued by the Agency under the provisions of this Chapter shall at all times 16
735	740		be free from taxation by the State or any local unit or political subdivision or other instrumentality 17
736	741		of the State, excepting inheritance or gift taxes, income taxes on the gain from the transfer of the 18
737	742		obligations, and franchise taxes. The interest on the obligations is not subject to taxation as 19
738	743		income. 20
739	744		"§ 122F-22. Conflict of interest. 21
740	745		If any member, officer or employee of the Agency shall be interested either directly or 22
741	746		indirectly, or shall be an officer or employee of or have an ownership interest in any firm or 23
742	747		corporation interested directly or indirectly in any contract with the Agency, including any loan 24
743	748		to any sponsor, builder or developer, such interest shall be disclosed to the Agency and shall be 25
744	749		set forth in the minutes of the Agency, and the member, officer or employee having such interest 26
745	750		therein shall not participate on behalf of the Agency in the authorization of any such contract. 27
746	751		"§ 122F-23. Additional method. 28
747	752		The foregoing sections of this Chapter shall be deemed to provide an additional and 29
748	753		alternative method for the doing of the things authorized thereby and shall be regarded as 30
749	754		supplemental and additional to powers conferred by other laws, and shall not be regarded as in 31
750	755		derogation of any powers now existing; provided, however, that the issuance of bonds or notes 32
751	756		under the provisions of this Chapter need not comply with the requirements of any other law 33
752	757		applicable to the issuance of bonds or notes. 34
753	758		"§ 122F-24. Chapter liberally construed. 35
754	759		This Chapter, being necessary for the prosperity of the State and its inhabitants, shall be 36
755	760		liberally construed to effect the purposes thereof. 37
756	761		"§ 122F-25. Inconsistent laws inapplicable. 38
757	762		Insofar as the provisions of this Chapter are inconsistent with the provisions of any general 39
758	763		or special laws, or parts thereof, the provisions of this Chapter shall be controlling." 40
759	764		SECTION 1.(b) Notwithstanding the requirements of G.S. 122F-4, as enacted by 41
760	765		this act, the initial appointments to the North Carolina Child Care Finance Agency shall be 42
761	766		appointed to a term beginning October 1, 2025, as follows: 43
762	767		(1) Six members appointed by the Governor as follows: 44
763	768		a. One member with experience in workforce needs to a two-year term 45
764	769		expiring June 30, 2027. 46
765	770		b. One member with experience as a licensed child care provider to a 47
766	771		four-year term expiring June 30, 2029. 48
767	772		c. One member with experience as a specialist in child care licensure to 49
768	773		a two-year term expiring June 30, 2027. 50 General Assembly Of North Carolina Session 2025
769		-	Page 16 ~~Senate Bill 680-First Edition~~
	774	+	Page 16 DRS45337-TCa-6
770	775		d. One member with experience in construction of child care facilities to 1
771	776		a four-year term expiring June 30, 2029. 2
772	777		e. One member with experience in commercial small business lending to 3
773	778		a two-year term expiring June 30, 2027. 4
774	779		f. One member with experience in real estate development to a four-year 5
775	780		term expiring June 30, 2029. 6
776	781		(2) Three members appointed by the General Assembly upon the 7
777	782		recommendation of the President Pro Tempore of the Senate as follows: 8
778	783		a. One member with experience with a savings and loan institution to a 9
779	784		four-year term expiring June 30, 2029. 10
780	785		b. One member with experience as a licensed child care provider to a 11
781	786		two-year term expiring June 30, 2027. 12
782	787		c. One member with experience in construction lending to a four-year 13
783	788		term expiring June 30, 2029. 14
784	789		(3) Three members appointed by the General Assembly upon the 15
785	790		recommendation of the Speaker of the House of Representatives as follows: 16
786	791		a. One member with experience with a mortgage-servicing institution to 17
787	792		a two-year term expiring June 30, 2027. 18
788	793		b. One member with experience as a licensed child care provider to a 19
789	794		four-year term expiring June 30, 2029. 20
790	795		c. One member with experience in a business that makes on-site child 21
791	796		care available to employees to a two-year term expiring June 30, 2027. 22
792	797		SECTION 2. The State Treasurer shall invest three and one-half percent (3.5%) of 23
793	798		the corpus of the North Carolina Innovation Fund with the North Carolina Child Care Finance 24
794	799		Agency. 25
795	800		SECTION 3. There is appropriated from the General Fund to the Department of 26
796	801		Administration the sum of twenty million dollars ($20,000,000) in non-recurring funds for the 27
797	802		2025-2026 fiscal year for the North Carolina Child Care Finance Agency. The North Carolina 28
798	803		Child Care Finance Agency shall use the funds as provided in G.S. 122F-20, as enacted by this 29
799	804		act. 30
800	805		SECTION 4. This act is effective July 1, 2025. 31