What are the procedures for issuing municipal bonds?

In North Carolina, when a municipality issues bonds, there is a process that must be followed in order for the bond issuance to be legal. This process begins with the local governing body, such as a county commission, authorizing the issuance of the bonds. The bonds must then be advertised in a newspaper and public hearings must be held to discuss the intended use of the bond funds. Once these steps are complete, the governing body must pass an ordinance or resolution that outlines the bond issuance, including the amount and terms of the bond. This ordinance or resolution must then be approved by the North Carolina Local Government Commission. Once the bond sale is approved, the bonds must be offered for sale to prospective buyers. This process is known as a bond sale and typically includes issuing a notice to the public and accepting competitive bids from investors while following certain rules and regulations. Finally, once the bids are accepted, the proceeds from the bond sale are distributed to the municipality. The municipality must then use the bond proceeds in accordance with the terms of the bond ordinance or resolution.

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What are the procedures for issuing municipal bonds?

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