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FomlFmHA 1942-47 . . LOA ,..~. ~t, uI.J , OMBNO. O~S-O01$ ARESOLUTIONOF'I~IE -BOARD OF COH~ISSIOHERS ' OFTH£ ~ATER AND SE~;R'D~ISTRICT OF CA]~,RRUS COUNTY AUTHORIZING AND PROVIDING FOR THE INCURP~NCE OF IND£BT]EDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING 1TS Water Service Faeilitien FACILITY TO sERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the Water and Sewer District of Cabarrus County [Public Bod),) (herein after railed association) to raise a portion of the cosl of such uudertaking by i~uance of its bonds in ~he principal amount of Seven Hill:ton Two Hundred Seventy-One Thousaud Dollars (~7,27i~000.00) pursuant to lhe prov!slons of. N.C. General Statutes WHEREAS, the association intends to obtain aLsisiance from the Farmers Home Adminht~ation, United States Department of Ayicul- lure, (herein called the Government) acting under the provisions of the Consolidated Farm and Ru~l Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supen, igon of such undertaking and to purchasing of bonds hwfully issued, in the event that no other acceptable purchaser for such bonds is found by the association: NOW THEREFORE, in consideration of the premises the association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds and containing such items and in such forms are requbed by STATE statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpakl balance, in whole or in part, of ils bonds upon the request of thc Government if at any time il shall appear to the Govemmenl that the association is able to refinance its bonds by oblainlng a loan for such purposes frmn responsible coopetati'.'e or private sources at reasonable rates and terms for loans for sinli]ar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Dcveinpment Act (7 U.S.C. 1983(c)). 3. To provide for, execute, ?nd comply with Form FmHA 400-4, "Assurance Agreement"; and Form FmHA 400-1, "Equal Opportunity Agreen~ent", including an "]Equal Opportunity Clause", which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in cxcess of S]0,O00. 4. To indemnil'y the Govemmenl for any payments made or losses suffered by the Government on behalf of the association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per- missile source. 5. That upon default in Ihe paymenl$ of any principal and accrued inteies~ on the bonds or in ~he performance of any cov- cnam or agreenlcnt contained herein or in the instruments incident to making o~ insuring the loan, the Govemnment at its option may (a) declare the emim principal arnount then outstanding and accrued interest immediately due and pay- able, (b) for the account of the association (payable from the source of funds pledged to pay the bonds o~ any other legally permiss~le source) incur and pay reasonable expenses for repai~, maintenance, and operatibn of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take posse~on of the facility, repair, maintain, and operate or rent it. Default under theprovisions of this Resolution or any instrument incident to the making or insuring of the loan may be conslrued by the Government to constitute default under any other instrument held by the Governmen! and executed or assumed by the Association, and default under any tach instrument may be construed by the Government to constitute default hereunder. 6. Not to sell, lransfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, not permit others to do so, without the prior written consent of the Government. 7. Not to borrow an)' money from any somce, enter into an)' contract or agreement, or incur an)' other liabilities in con- nection with making enlargemems, improvements ot extensions to, ot for any other purpose in connection wi[h the facility (excluske of normal maintenance) without the prior written consent of the Government if ~ch undert eking would im'oh'e the source of funds pledged to pay the bonds. g. To piece the proceeds of the bonds on deposit in an accounl and in a manner approved by the Government. Funds may be deposited in institutions i, suted by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States. Any income from these accounts wilt be considered as revenues of the system. 9. To comply with all applicable State and Federal laws and tegu]asions and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet ~he requh'ements of debl service, opetalion and maintenance, and the establishment of adequate reserves. No free sen'icu or u~' of the facility will be p~rmitted. I 1. To acquire and mainlain such insurance coverage including fide!try bonds as may be requited by the Government. 12. To establish and mainlain such books and records relating to the operation of the facility and its Fro;racial affairs and to provide for required audit thereof in such a manner as may be required by the Government, lo provide the Government will,ut ils rcq~uest, a cop)' of each ~ch audit, and to make and forward to thc Governmenl such addilional information and reports as tt ma)' front time to lime requite.