159-74. Test cases testing validity of funding or refunding bonds.
At any time after the procedure for authorizing the issuance of funding or refunding bonds has been completed, but before the issuance of the bonds, the issuing unit may institute an action in the Superior Court Division of the General Court of Justice in the county in which all or any part of the unit lies, to determine the validity of the bonds and the validity of the means of payment provided therefor. The action shall be in rem, and shall be against all of the owners of taxable property within the unit and all citizens residing in the unit, but it shall not be necessary to name each such owner or citizen in the summons or complaint. Jurisdiction of all parties defendant shall be acquired by publication of a summons once a week for three successive weeks, and jurisdiction shall be complete within 20 days after the date of the last publication. Any interested party may intervene in the action. Except as otherwise provided by this section, the action shall be governed by the Rules of Civil Procedure. (1931, c. 186, ss. 4, 5; 1935, c. 290, ss. 1, 2; 1937, c. 80; 1971, c. 780, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 159 - Local Government Finance
Article 4 - Local Government Bond Act.
§ 159-43 - Short title; legislative intent.
§ 159-45 - All general obligation bonds subject to Local Government Bond Act.
§ 159-46 - Faith and credit pledged.
§ 159-47 - Additional security for utility or public service enterprise bonds.
§ 159-48 - For what purposes bonds may be issued.
§ 159-49 - When a vote of the people is required.
§ 159-52 - Approval of application by Commission.
§ 159-53 - Order approving or disapproving an application.
§ 159-55 - Sworn statement of debt; debt limitation.
§ 159-55.1 - Statement of disclosures necessary for bond authorization.
§ 159-56 - Publication of bond order as introduced.
§ 159-56.1 - Certain proceedings ratified notwithstanding provisions of § 159-56.
§ 159-57 - Hearing; passage of bond order.
§ 159-58 - Publication of bond order as adopted.
§ 159-59 - Limitation of action to set aside order.
§ 159-60 - Petition for referendum on bond issue.
§ 159-61 - Bond referenda; majority required; notice of referendum; form of ballot; canvass.
§ 159-62 - Limitation on actions contesting validity of bond referenda.
§ 159-63 - Repeal of bond orders.
§ 159-64 - Within what time bonds may be issued.
§ 159-65 - Resolution fixing the details of the bonds.
§ 159-66 - Validation of former proceedings and actions.
§ 159-67 - Procedures if a county votes to relocate the county seat.
§ 159-68 - Certain provisions not applicable to refunding bonds.
§ 159-73 - Financing or refinancing agreements.
§ 159-74 - Test cases testing validity of funding or refunding bonds.
§ 159-75 - Judgment validating issue; costs of the action.
§ 159-76 - Validation of bonds and notes issued before March 26, 1931.