North Carolina officials are letting cash-strapped Chowan County extend two of its loans to give the county's managers more flexibility to pay their bills.

The Local Government Commission on Tuesday signed off on the
county's requests to spread out payments on two existing
construction loans over an additional 4 1/2 years and 5 years.

Extending the repayment schedule will help county officials as
they struggle to pay their bills.

In July, the new Chowan County manager announced the county's
once $25 million reserve fund was nearly depleted. Since then, the
county has worked with state officials to reduce spending and raise
additional money.

State authorities also are investigating possible criminal misconduct.