Industrial Revenue Bonds: Approval Process Steps
1. IRB users should consult with bond counsel early in process concerning project eligibility and use of bond proceeds.
2. Company must obtain letter of credit from a bank to support the bonds. The letter of credit should be rated investment grade or better.
3. Inducement agreement is signed between the company and the county industrial facilities and pollution control financing authority that will be issuing the bonds.
4. County public hearing with notice is published in newspaper of general circulation within county at least 14 days prior to scheduled hearing.
5. Pre-application conference call is scheduled by Department of Commerce representative to include company, county, bond counsel, environmental (air and water quality), and Local Government Commission.
6. Environmental approval is obtained.
7. Application and exhibits are submitted to the Department.
8. North Carolina’s Secretary of Commerce gives final approval once full application has been received, environmental approval has been received and financials have been reviewed.
9. Volume Cap allocation is provided once project has Department approval.
10. Local Government Commission meets the first Tuesday of each month, and the project is again reviewed for approval.
11. Before closing, Commerce Certificate of Approval is published in newspaper of general circulation. With no appeal within 30 days from publish date, Clerk of Court Certification is obtained from Wake County Superior Court.
12. The county industrial facilities and pollution control financing authority in which the project will be located issues the bonds. (For projects that involve processing of, or waste from agricultural projects that do not fit in the definition of “manufacturing”, the Issuer is The North Carolina Agricultural Financing Authority.)
13. It is the company’s responsibility to find a buyer for the bonds. Often, the bank that issues the letter of credit will place the bonds as well.