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Page Three November 30, 1987 Mr. Bennett was working with the Local Government Commission on the documentation required to be ready to issue these notes. As you are also well aware, this can be a time consuming process, consequently, the need existed for short term funds to continue to finance the project in the interim. On May 6, 1977, three promissory notes were issued by the Board to the following banks: Cabarrus Bank & Trust Company for $800,000; Concord National Bank for $275,000, and Citizens National Bank for $250,000. All three notes were originally issued for 60 days at an annual interest rate of 6 1/4%. The three notes were renewed on July 5, 1977 for another 60 days each at an annual interest rate of 7%. The three notes were renewed the last time on September 3, 1977 for 30 days and matured and were paid off on October 3, 1977. The total interest expense for these three promissory notes for the 150 days they were outstanding was ~7,076.63. Of this total, the allocation to the County was 16.66% or $6,176.97. The remainder of the interest expense allocated to the County related to the grant anticipation notes. Grant anticipation notes in the aggregate amount Of $2~500,000 were issued, dated october 14, 1977 with a maturity date of January 14, 1980. The grant anticipation notes were sold'by negotiated contract conducted by the Local Government Commission. The following four banks offered to purchase all of the grant anticipation notes, with an annual interest rate of 5 1/2%, at the price of par plus accrued interest from October 14, 1977 to the date of delivery: Cabarrus Bank & Trust Company, $750,000; North Carolina National Bank, $1,000,000; Concord National Bank, $500,000; and citizens National Bank, $250,000. Question: In the final settlement, the County was only given credit for $153,502 of a $164,256 loan. Response: The worksheet given to you and your staff, preDared by our independent audit firm, reflects a credit to the County of the full amount of the loan made to the Rocky River Fund, that amount being $164,256. Question: What constitutes the payment of $60,000 for damage settlements reflected in the audit for the fiscal year ended June 30, 19807 Response: A lawsuit occurred during the course of the construction of the plant with Frank L. Black, Jr., Inc., the contractor for the project. One of the sub-contractors affected by the alleged damages during this time was Watson Electrical Company. Frank L. Black, Jr., Inc. remitted the damages owed to Watson Electrical Company to the Board of Light