xt7zpc2t7h7s https://exploreuk.uky.edu/dips/xt7zpc2t7h7s/data/mets.xml North Carolina Historical Records Survey of North Carolina 1941 Prepared by the North Carolina Historical Records Survey, Division of Community Service Programs, Work Projects Administration; Other contributors include: United States Work Projects Administration Division of Community Service Programs, North Carolina Historical Commission; 30 leaves, 28 cm; Typescript (photocopy); Included index and bibliography; UK holds archival copy for ASERL Collaborative Federal Depository Program libraries; Call number FW 4.14:N 81c/ser.2/no.4 books English Raleigh, North Carolina: The Survey This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. North Carolina Works Progress Administration Publications Inventory of the State Archives of North Carolina, Agencies of Fiscal Control, Series II, Number 4 Local Government Commission text Inventory of the State Archives of North Carolina, Agencies of Fiscal Control, Series II, Number 4 Local Government Commission 1941 1941 2015 true xt7zpc2t7h7s section xt7zpc2t7h7s I I I   UNIVERSITY OF KENTUCKY! I
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i Historical Records Surxey Projects 4
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-3 Sargent I. Child, Director i
Tilton H. Blanton, Regional Supervisor Z
rz Colbert F. Crutchfield, State Supervisor {
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-3 Eivision of Community Service Froqrems I
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1 Florence Lcrr, Assistant Commissioner Q
g Blanche H. Lnlston, Chief Regional Supervisor Y
j Ley E. Camplcll, Stete Director {
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j Howard O. Hunter, Acting Commissioner i
Y   I-·• Ei(}DOU~Q;&l]-, ;:i€giOl'l€L-1. DlI`@CtOI'  
C. C. LcGinnis, State Administrator
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Q Sycnsorcd by the Forth Caroline Iistorical Commission §
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i V O H , W. : l,
i , L. C. S. Noolc, tnairmen .
Q C. C. Crittenden, Secretary Q
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§ U O A m N"O R D
Q The g§jEntory·££_t§e_§Esj§_nicnives of lcrth Carolina is one of a
jr number of tibliographies of historicglindterinlsmorcgerEH—throughout the
l United States by workers on the Historical Records Survey of the jerk
f Projects Administration. Each state department, institution, or other
4 agency will to represented by e separate section of the inventory; tHe
S section for functionally related agencies will be grouped in series.
i The Listorical Records Survey Program wss undertaken in the winter
§ of 1955-36 for the gnrpose of providing useful employment to needy on-
YQ employed historians, lawyers, teachers, and research and clerical
li workers. ln carrying out this objective, the yrojcct was organized to
ii compile inventories of historical materials, gsrticulurly the unpublished
¥ government documents and recoris niich are Uasic in the administration of
§ local government, and which provide invslnsBle data For students of poli-
j tical, economic, and social history. The archival jvide herewith pre-
- sented is intended to meet the requircmonts of dmg—tc—iuy administration
i by the officials of the State, and also the needs of lawyers, businessmen
§  ond other citizens who require facts from the prolic records for the
i proper conduct of their affairs. The wolrme is so @esi;ned that it can
1 be used by the historian in his reseorcn in nrprinted sources in the same
l way he uses the library care catalog for printed sources.
$ The inventories produced by tlc Zistoricsl Records Survey Program
U attempt to do more than merely yiwe o list of rccords——they ettempt to
Q sketch in the historical background and to describe precisely and in
Q detail the organization one functions of the agencies whose records they
{ lists The inventories for tlc entire country will, when completed,
{ constitute an encyclopcdio of state and local gov:rnmcnt as will as s
Q bibliography of state ono local srchixcs.
ir The successful conclusion of the work of the Historical Qtcords
{ Survey Yrcgrom, ever in e single sqoncy, would not be possible without
` the supgort of public officials, historical and legal specialists, and
l mnny other groups in the comnmnity~ Their co—opersticn is gratefully
( acknowledged.
, The Snrxoy Projram was orgonizon by Luther T. Lvnns, who served as
E Director until his upoointment as Director of itc lejislstive Reference
Q Service of the Library of Congress. Ho was succeeded on narch l, l9%O,
{ by Sargent B. Child, who Lao served us Fiell Uwpervisor since the inaugu- ·
3 ration of the Survej. YH; Srrwc; irojren oy.rntcs ns a lation-wide
5 series of locally sponsored grojecLs in the liwisiou of Community Service
Q Proeraus, of which Mrs. Florence Kerr, nsslstovt Commissioner, is in
y charge.
ll Lctfng Gomrisrioner
i { .
5 V

Q The Historical Rsc0rds Survey was created in the winter of 1955-ZG
F as a Nation-wide W0rksPr0gr€ss Administration project for thc "discovery,
A preservation and listing of basic materials for research in the history
of the United St&t&s."l Under the direction of Dr. Luther Q. Evans, the
1 Survey undertook an extensive program for thc inventory of state and
Q local archives, early Ammrican imprints, church archives, and collections
Q of manuscripts. Pursu&ut to the provisions of the Emergency Relief Act
fi passed June BO, 1939, thc existence of the Survey as a siuglu Nation-wide
§ project sponsored by WTA itself was terminated Mugusb Bl, IQSQ. The
[ work cf thc Survey Mas ,=. continued within the individual states by locally
f sponsored projects operating within the national WTA Historical Records
Q Survey Pr0gram.wh1ch continued under the direction of Dr. Evans until his
{ resignation and the subsequent appointment of Sargw»t B. Child on harch 1,
Z The North Carolina Project 0f the national Historical Records Survey
E was established February 1, 1936, with Kr. C. C. Crittenden, Secretary of
Q the Forth Carolina hishorical Coumdssimn, us Sircctor. Dr. Crittenden
Z resigned as State Director June BO, 1957, and was succeeded by Dam Lacy,
E who had previously served as Assistant Stake Director. The work of the
Q North Carolina unit cf the Yistovlcal Records Burvuy was continued by the
g North Carolina lisboriual Rccwrds $urv©y Project established Scptcmber 1,
`F 1959, and sponsored by the Eorth Carolina Histo: cul Commission. Mr. Lacy
" resigned as Stats Suparvisor on Lpyil l, 1940, to aqccpb an appointment
11 as Assistant tc the bircctor nf Lisicr cal Records Burvcy Projects in
iQ Ȥ;sh1ngt0n, D. C. H0 was succccdud by Colbuyt F. Crutchfield, who had
{Q served as Assistant Stats supervisor under Ly. Lucy.
QF The present inventory of the racords of the local Government Commis-
1 Sj.OIl is a section of *0%; IIlVGEL`\3OI`lf of     g11·.¤·es fi   OBEBEEE
Q} being prepared by tha Hcr¥FrYE5;;EE§;Yi1stmrioal Raccrds Survey Frcject.
j  The inventory was prepared uu ·s`,.· my tho supervision 0f Branson iaylcy,
Q District Supervisor in charge of yublic archives. Field work was donb ky
F Jum©s'H. F&rk©r, Gcovgc L. bmutumdj ani Irs. Willa Saul;. The inventory
{ w&s read for the sponsor by Dv. C. O. Crittenden of the North Carolina
Historical Commission aud·was edited by Lira Mahal S. Lrodic of the
E Library 0f Congress Iabional Technical Project mf the Tistcrical Records
i Survey Program. The Suyvcy is imdubtad to thu m0mbOrs 0f the stuff of
Y the Local Gnweymmcmt Commission for their generous c0—0p;r&t10u in the
  1.;.mh 1941
5 A _ _ _
{ 1. `Works Progr ss Adminishration, O£E£jjj£g;j];2;[Qgq& £2¤"EgE) ucv1sgd
 § J1~.1y 2, 192*;.

1. Structural Organization and Evolution
By an ect of 1851, the General Assembly created the Locsl Government
Commission, an agency to supervise and control the financial nctivitiss of
units of local government. Erior to that time and under the constitution
of 1866 the board of comgissioners of each county, under the supervision
of the General Assemb1y,* was given the power of exercising general super-
vision and control of county taxes and finances. lhc county comnissicners
were authorized, upon the approval of the General Assembly, to divide their
counties into convenient districts csllod townships, which were grunted
corporate powers for the necessary purposes of local govcrnxent.2 The
qualified voters of each township biennlally elected a clerk and two just-
ices of the peace, who controlled the township taxes and finances under the
supervision of the county commissioners.; Ho county, city, town, or other
municipal corporation, however, could contract a debt except by thc consent
of a majority of its voters, and no money could be drawn from any county,
town, or municipal treasury except by authority of l&w.@ By an amendment
of 1875 the General Assembly was authorized to modify,_cL&n;e, or shrogutc
any and all of the above-mentioned provisions of 1868,5 and as a result of
seventy years of legislation local government units have become entirely
subject to legislative enactments.
Except for the municipal finance act of 1917, which spglioi only to
cities and towns and provided for municipal Luugct systems, no legislative
attempt was made in North Curolino to improve local government through
fiscal supervision and control prior to 1QZl.6 Sinoc the municipal finance
not made no provision for state control or supervision, it was almost
wholly ignored. A few counties and municipalities did achieve governmental
improvement under powers and privilegcs grantcd by pub1io—loo&l laws. The
addition of thc county auditor was brought about by the passage of such
laws affecting many of the counties, and nearly cvcry county was govcrncd
more or loss by punlic-locul laws which were beneficial to 2 great oxtont
but which on thc other hand added to th; gcnorul confusion and made more
difficult any movement for adequate reform to be applied to the counties
as a whole.
ln 1918 the State Kuditor conyluincd of the lack of provision for
checking tex returns and county rcqorns nni accounts and asked for the
employment of three to five experts whose duties should consist of supcr-
vising and looking after the Stste‘s intorcsts.7 The need for State guid- ‘
ance in local financial affairs appcared at about the same time, when tho
local units called for greater financial uid for thc support of public
schools, health, welfare, highways, and agriculture. The question natural-
1. Const., nrt. VII, s. 2. 6. Pgul V. Bcttcrs, Stntc Con~
Z. Itic., s. 5. injaligpijini in lx{?UY1@駧?
5. ITE., Ss. s, o.   so.
Q. IETE., ss. 9, 10. 7. State Auditor, Annual Lc-
5. Ibid., s. 14. ifn;t, 1918, iVu—·_~~_--——

 ly arose es to the methods that would insure the greatest returns for the
increased expenditures.
In 1921 the Auditor was directed to make en audit at least once annu-
ally of the accounts of all counties and county officers in the State and
to establish rules and regulations for improving end making uniform the
system of accounting used in the counties. Cost of the audit was to be
borne by the State, provided the audit did not show thc county to owe the
State; if the county owed the State, the county should beer the expense.
The new regulation applied only to counties not employing s full-time
- auditor or ecconntant, although the State could make special audits of
the accounts of any county.g
In order to protect the credit of the State an extra session of the
General Assembly of 1921 provided for supervision by the State Auditor
of the psyment of princioel and interest on bonds of local government
units. After Heron l, 1922 it became the duty of the recording officer
of the gowerning body of each indebted unit to report to the State Auditor
detailed informetivn on each indebtedness on forms to be provided by the
Auditor. The Auditor was required to keep e properly indexed record of
thc rcgortsg and to certify to the recording officers the amounts of taxa-
tion neccssery Qor the peguwnt of interest accruing on bonds or notes the
following ycsr.*O Penalties were proxidcd for failure to perform duties
imposed under thc sctll and the State Auditor was required to report vio-
letions to the solicitor of the district.l2
During the same period, the increased State appropriations to public
education made necessary the introduction of the county school budget
system, which was the forerunner of the general county budget system. The
Superintendent of Fublic Instruction, consequently, conducted e survey,
sided in reorganizin; the government of one county, end published en art-
icle, “The Best Uovcrnec County in the St&te," in order to give other
counties a standard by which to gauge their efficiency.l5
Thereupon, the annual conference of the State Association of County
Comnissioners, held in August 1925, requested the Governor to appoint a
commission to study county government and to make recommendations for its
improvement. The Governor apyointcd e commission cn county government,
which consisted of l5 members with the Superintendent of Public lnstruc-.
tion as chsirnan. Lftsr organizing, appointing sub—committees to study
the various problems, and holding four meetings of the full commission to _
discuss the reports of its sub-committees, the commission made e careful
and accurate analysis of the governxent of about 25 counties and submitted
a rejcrt to the Governor and General As eubly of 1927 in which it showed
that where the greatest reform was needed was in fiscal management. As a
8. Public Laws of Iorth Caroline, ll. Ibid., ss. 5-7.
as Public Lows. 13, Raleigh Yews and Observer,
sa. 1>uo`?$‘1E»·;§°“T;·21 exam seg-- s*?1im?§ai"s`Ec`§;>`¤, p`. 1,
EdEE;*YYT_l: s. l. January l8, 1925.
10. Ebid., s. Q.

 - 5 -
result of its findings and because of the increasing complexity of county
business, of the Giffercrce in local couditiors which necessitated special
legislation and caused s lock of uniformity in the system of county gov-
ernment and in the exercise of the powers ccn?erred,end of the necessity
that the governing body of a county have sufficient powers to bring about
thorough, sceurstc, and comgre?ensive supervision of all business of the
county, the General hssembly oi 1927 designated two fomns of county @ov—
ernment, namely, the county commissioner form, in which the government is
sdministered by s board of from three to five commissioners,14 and the
msneger form, in.u®ich the board of commissioners appoints e manager, who
is administrative head of the county government under the supervision of
the comnissiencrs.l5
Lt the same time there was crested the County Advisory Commission,
consisting of five members, who must be qualified by knowledge and exper-
ience to sivise county officials in the proper administration of county
Lovernmcnt, end at least three of when must be selected from existing
boards of count, cemnissioners.l6 The members of the Commission were
selected by the Governor, served Jer terms of Q years and were paid only
exgcnies incurred in the perfornunce of their outics.i7 The County Advis-
ory Commission was enpcwcrqd to take under consideration the whole subject
of county administration, to advise with thc ccunty commissioners as to
the best methods of udministering county business, to sugqest such changes
in the oréenizution of dcpertuvnt: of county government is would best
promote the puhlic interest, uno to mekc recomncndations to the Governor
ccncerninj the changes in the general low: controlling county government,l8
For the purpose of performing the duties imposed upon it, the County
hdvisory Commission was authorized to eppoint e competent person to be
known as the Executive Secretary, who uns to maintain on office Ln Raleigh.
The duties of the secretory were to uct ss secretary of the Commission,
to advise ond Assist the county commissioners and other county officials
in providing competent, economical, and efjicicnt ewiinistretion, to sug-
gest approved methods for leiying and collecting taxes ond other revenues
and for keeping sccounts of the various departments and offices of the
county governments, and to prepare a manual of forms for the guidance of
county ctficcrs in meLing reports and in keeping ecccrnt oi receipts and
exgcniitures of pullic moncy.l9 Che Commission, with the approval of &;e
rorernor, was empowered to employ the necessary assistants end to fix the
salaries of all cssistents and of the secretory. Th. expense of visiting
each county was paid by the county ugcn ugreemcnt between the County Ad-
wisery Commission and the LomrQ of county·conmnssioncrs.2O
A second uct of the General Assembly of 1927 uns the Public Securi-
ties According Act, which prewiccd for Stetc suycrvision cY the means and `
methods of pn;ment of principal and interest on county and municipal
debts, in order to pretext any defeult or delay in muking payment which
14. Public Lows, lC27, c. Ql, l7. I%i£., s. lo.
1:;. lvm.,     is.   S. 1.7.
    s. 14.   __T.L_E1iT.., 5. ia.

 ?» might be interpreted as e reflection on the SLatc.2l In 1529 the duties,
V applications, and reports recwired by·the lullic Securities Recording Act
of 1927 were transferred from tie ·`.= department oF the State Muditor to the
Sinking Fund Ceymission, an ex of icio body created in 1925 and composed
of the Governor, the State ¢uditor, and the State ireesurer. Far-reaching
additions to the State's control of local government finences were made to
the act of 1927, and the Sinking Fund Commission was given effective
supervision over the sale of bonds and notes of local units of government
exclusive of notes issued in anticipation of the collection of revcnue.22
In 1931 the General Assembly passed the Local Government Act, creat-
ing the Local Government Commission, which succeeded to the powers, dutisg
and records of the County Advisory Commission and to those powers, duties,
and records of the State Sinking Fund Commission and of the State Auditor
which related solely to the financial affairs of the local governmert
units.25 The Commission consisted of nine members, including the State
huditor, the State Treasurer, end the Commissioner of Revenue as ex office
members, and six appointed members, cue of whom must be the chief execu-
tive officer or member of the governing body of e city or town, and one
of whom must be a meruwr of the govormiuy body of a county at the time
of his appointment.2% In l€53 the Secretary of State was made a fcurth
ex officio member of the Commiseiom.Z5 All mwmbcrs must give such bonds
as the Eovorror may requirc.2$ Lppoirted members of the Commission are
chosen by the Gcvurnor, scrwt wi his pltgsuro, e§Q are entitled to Q10
e dey for expenses for actwul official scrvic>s."
Ono of the members of the Lecal Govcrpwort Coxudssion was designated
by the Governor to act es Uirector of Local Government. The Dirccter's
· salary crigiually‘was determizee by tke Cowcxnor with the approval of
the Advisory Budget Ccmniseiou.2¥ in l?UK, homcvtr, the provisions com-
cerning an appeintive Director were etolislcd end it wes provided that
the State Treasurer be ex officio Director of Local Government and chair-
men and treasurer of the Local Gowrrnncnt Commission. bnder the 1951 ect
the Commission clectcd a chairmei and a Vice-chairman from mnong its
membcrs,29 but under the l$ZE apemimcnt, it chose only a vice—chuiruen.$O
The Director of Local Government is empowered to appoint such assistants
as he may eeem necessary enQ muy, with the epgroval of the Governor, fix
their compens&ti©m.$l Under tLe later act he is empowered to apeoint
some cmxpetent person es assistant to the Director and Secretary to the
Comxission.3; The Commission ie required to meet quarterly and may hold
special meetings upon notice to each member personally.3Z It is author-
ized to call upon the Attorney Generel‘s office For legal counsel.Zl
The functions of the Local Government Commission and of the Director must
be maintained and operated es e distinct department of the State Trersur- .·l.
Z1. Tublic Lows, l92T, c. 214. 28, Ibid.
2;;.     C. ez; ieze, ze.  
ET_§77, s. l. 30. -T:;§., 1935, c. 51, s. 1.
zz. rim., 1951, C. eo. $1.   iixi, O. co, S. 7.
25.   1:7;:, C. :21, S. 1. :5;.   1;:21, C. eo,   7.
_     msi,   ge, S. 7.    

 - 5 -
The Auditor, Treasurer, Commissioner of Revtmue, and Diroctor consti-
tuted the executive cowmittee of the Local Govorsmeut Ccmyisgiou and more
vested with the powers of the Commission, except whey the Ommnission was in
its quarterly sessi0m.56 In 1933, however, the Secretary of State was sub-
stituted for the Director as a member of the executive committce.57
A majority of the members of the Cmmuisriom constitutos a quorum.
Action of the Commission is taken by resolution, which is, in effcct, upon
passage of tho resolution by s majority of thc members of the Commission or
the committee present ut the meeting at which the resolution is made.
2. Powers and Duties
The functions of all agencies which supervised the finances of units
of local government were, in lGBl, given the newly created Local Government
Cmmaissiou. Under the Public Securities Recording Act of 1927, it was mode
the duty of the recording officer of ouch county, township, school district,
tax district, or municipality, the governing body of —hioh .-·.* had authorized
the issusnce of bonds, to file with the State Auoitor a detailed report on
all obli;utions.38 The Auditor was requireg to have printed und distyibuted
a list of the bonds and notes rcgortod.5$ it was the further duty of the
recording officers of each governing body which should thcrcafter authcvizo
any bond or moto issuance in u township, county, school district, ts; iis-
trict, or xmnioipality to file A statement with the Stoto Auditor, showing
the name and amount of each bond authorized, the dsto aid time iixcd for
the payment of principal or interest, the rate of interest, the ylace of
payment, and the denomination and purpose of issuuuoc. The stutonemt also
had to contain the more of the board vested with the outhoyity to levy the
taxes, reference to the authorizing law, and recitation of the procoooings
autLorizim; the debt.4O The bond issue was not valid until tho roquirod
statement was filed and until the State iuditor recorded and certified its
substance to the reporting official.4l The ;uQitcr was rcqvivcd to furnish
forms upon which the statements were nudo.*2 Ho was also rcquired,at least
BO days before the time for lcvyipg tsxcs ouch your, to mail a statement of
the amount to be provided by tuxstiou or otherwise for the psyxent of intey~
est accruing upom.sucn bonds or notes and for the payment of such bonds as
might mature. le was further required,3O days before the maturity of u
bond issue, to mail e notice to the iiskmysing of;icer, giving amount, pluce
of payment, and a reference to the ckligution fow k,· which bond issue was
t msdo.43 Penalties were provided for Failure of au, county official to ful-
i fill the duties imtoced upon him by thc ect, and the State Auiitor was re-
, qired tc report any such omisrious For prosccution by the solicitor of the
1 district or by the Lttoruey ?eucral.&Y _
36. Eublic Laws, l9I5i;, 0. SO, QU. Ql.bi~il.
  41.   S. 5.
57. Ibid., 1955, c. bl, s. E. Q2. Tlii., s. 6.
ss:. TSE., 12:27, G. ais, S. 2.     E;. 7.
    S.         as-1:.

 - 5 -
In 1929, the Sinking Eund Commission was jivcn the enforcement of the
Act of 1927 as well as ad itioral powers aud duties over the finances cf
units. Specifically, the duties of the Commission were to approve the
issuance and sale of bonds and notes of any county, city, town, school dis-
trict, or other political subdivision of the State, except notes issued in
auticipatiou.0f the collection of the current revenues of the next succeed-
ing fiscal year; to act upon all applications received by the governing
bodies of the local units for the sale of bonds and notes; to determine
before approving such issues thc necessity or expediency of the improvement,
the adequacy of the proposed issue for the accomplishment of the purpose
for wtioh the bond or note was to be issued, the amount of indebtedness cl~
ready outstanding, the existing tax rates, the assessed value of taxable
property, and the reasomble ability of the local unit to sustain the addi-
tional tax levy necessary to pay the principal and interest of the proposed
indebtedness as it became payable; to hold public hearings when in doubt as
to whether the proposed improvement mas necessary or as to whether tho
auount was adequate or exccssive;Q5 to sell all bonds and notes of local
units maturing more than one year from the date of issue, provided, however,
that any unit preferring to do sc cculi with permission of the Sinking Fund
Ummcissicn sell and collect the proceeds from the solo of such bonds and
nctosgég to keep complete records of all bond aud moto issues of local units;
to control the incurrcucc of fixed debt obligations by local units; to
notify each subdivision of the government of the principal and intcrcst due
on each loud issue to be provided by taxation or otherwise at least 50 days
before the time for the levyiu; e‘ ..`“ taxes; to report each violation or
failure to provide for debt service payments to the solicitor of the dis-
trict for prosecution o! the cfferdirg cfjicials; and to make a written
report to the General Assembly at thc bcgiuuiug of each regular session.
Issues disapproved by the State Simbini Ruud Comrission could bc submitted
to the voters for apyroval. The Ccmuisyiou was required to publish a notice
of sale, at least once, 10 days or more before sale, first, in a newspaper
publislcd iu the unit whose boris were to be cold, or if no ucwspapcr was
published there, iu a newspaper published iu the county in which the unit
was located; second, in a newspaper published within the State of North
Carolina having a sworn circulation, not including Sundays and holidays, of
not less than twenty thousand; and thiri, in a journal, published in New
York City, approved by the Comiissiou, and devoted primarily to the sale of
State, county, and municipal bonds. when the bonds were sold by the Commis-
sion and after they had been executed by tbe proper officials, they were
turned over to the State Treasurer who delivered them to the purchaser, col-
lected tre purchase price, and remitted such purchase price to thc local
unit, after deductiu; all necessary expcrsei, suck as the cost of advertis-
iue, collecting, and delivering the bcnds.*’
The duties, applications, and reports required by the Public Securities
Recording Act of l€27 were transferred from.the deparbnert of the State
Audit;r to the Sinking Fund Commission-@b
Q5. Iublic Laws, l92G, o. 277, @7. l3id¤, s;. &-9.
  """`   1;;:., s.  
es. Ibis., S. o.

 - 7 -
Finally, in lQ5l, all functions relative to local government finance
were lodged with the Local Government Gcmnission, which is uuthorized to
receive applications from local yovernment units for issuance of bonds and
noteség and to consider such applications in every detail concerning the
desirability, practicubility, and any other matters having e bearing on the
question prcsented.bO if it is satisfied that: (el issuance is necessary
and expedient; (B) the proposed obligations crc not excessive; (o) adequate
sinking funds have been or will be maintained; {d) the increase in tex rate
will not be unduly burdensome; (el the unit is not in default on any past
indebtedness; (f) thc requirements of pertinent lows have been mot; and
(G) 80 percent of the taxes of the local government unit for the prooedirg
fiscal year have already been collected, the Commission may approve the re-
quested issue. If the Commission hss not been satisfied with the above ~
mentioned considerations and finds that they are not applicable, it must
notify the governing body making the application. lf, upon the request of
‘ taxpayers and officials of the unit applying, the Commission still does not
grant the bond issue, the proposed indebtedness cannot he incurred until
approved by the voters of the unit proposing the issue.5l
The executive committee of the Commission is authorized to act for the
Commission except when the Commission is in quarterly or special session.
Action of the committee may not rcvorse e decision of the Cmmiission,52 but
the Commission as e whole may review en action of the committee in approving
any bond issue, provided application for s review is mode within five days
after such approxel, except ono involving the approval of notes maturing
not more than six months after the date of issue. If the executive commit-
tee refuses a bond issue, the review of such refusel may be made by the
Commission es e whole if application is made within BO days. Upon such
review the Commission is not hound by the evidence considered by the execu-
tive oomnittee55 and the legality of the bonds or notes is not an issue in
the epprovul or disapproval of their issueoce by the Commission.54
l Bonds, the‘issuence of which has been approved, are sold by the Com is-
sion et its office in Raleigh uftcr l0 dsys notice in u newspaper published
j in the territory governed by the unit or in the county in which the unit is
A located; if there is no newspaper, a notice must he posted at thc door of
the courthouse. The Commission.msy here notice of the sale published in
s State newspaper and in u journal which is published in New York City ond
is dcvoted to the subject of Ststc, county, end municipul bonds. An cx-
ception is mudo, however, in tho case of notes maturing not more than 6
l months from thc date of disposal, in that such notes muy be disposed of
either by prixetc or public negotiation after 5 days notice in s newspaper
c published in the territory governed by the unit. bids must be accompanied
by certified checks made payable to the order of the Treasurer for 2 percent U
of the full value of the bonds. The Commission is authorized to keep o
record of the names and addresses of all prospective hidders ond nay mail
l a notice of sole to eech.55 All proposals are opened in puhlic and sword
49. Public Laws, l95l, c. GO, _52. Ibid., sc. 9, 10.
§T‘i"K""'"     S.  
50. Ibid., s. l2. 5%. ltid., s. l2.
oi.   SS. 1;;, 14. ss.     rr

 1 _ B —
_ is made to the highest bidder provided, however, that no bond can be sold
for less than pur and occrued interest. The Commission must reject all bids
~ and readvertise the issue in event of rejection of the bids by the unit.56
· No bonds, notes, or other obligations issued under the ect are valid
A unless certified on their f