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349 The Board of Commissioners for the County of Cabarrus met in recessed session at the County Courthouse in Concord, North Carolina, on Friday, May 6, 1988, at 4:00 P.M. Present - Chairman: James W. Lentz Commissioners: Kenneth F. Payne William G. Hamby, Jr. Martha H. Melvin R. Giles Moss Commissioner Moss was absent for the beginning of the meeting. Chairman Lentz recessed the meeting until the conclusion of the meeting of the Board of Commissioners for the Water and Sewer District of Cabarrus County. Chairman Lentz reconvened the meeting of the Board of Commissioners. Mr. Blair D. Bennett, Finance Director, reported that the Farmers Home Administration is offering discounts to units of local government that are interested in refinancing their loans which are currently in place. He explained that the Water and Sewer District of Cabarrus County has two loans with the Farmers Home Administration in the total amount of $7,271,000.00 and that Farmers Home is offering a discount for these two loans in the amount of $2,034,354.00. Mr. Bennett reported that current loans financed by Farmers Home have 37 years remaining at 7.625 percent with a total payout during the period of $19,687,000.00. He stated he had contacted banking officials and had determined that the District could refinance the Farmers Home Administra- tion loans with a fixed rate for 20 years and a total payout of principal and interest in the amount of $12,748,000.00, saving the District $6,939,000.00. The annual debt service payments would be approximately $14,000.00 more year for the life of the loan. In conclusion, Mr. Bennett advised the Board that the Water and Sewer District was required to deposit $363,550.00 with the local Farmers Home Administration office on this date in order to participate in the program. UPON MOTION of Chairman Lentz, seconded by Commissioner Hamby and unanimously carried, the Board agreed to loan the Water and Sewer District of Cabarrus County the required five percent deposit of $363,550.00 for partici- pation in the Farmers Home Administration Discount Purchase Program to be repaid in full with no interest after the closing of the refunding bond issue. UPON MOTION of Commissioner Hamby, seconded by Commissioner Melvin and unanimously carried, the Board authorized Mr. Blair Bennett, Finance Director, to make application on behalf of the Water and Sewer District of Cabarrus County to the Local Government Commission and put the five percent deposit down with the Farmers Home Administration to meet the deadline to participate in the Farmers Home Administration Discount Purchase Program. The Board also authorized Chairman Lentz to sign the following Indications of Interest to participate in the program. FARMERS HOME ADMINISTRATION DISCOUNT PURCHASE PROGRAM INDICATION OF INTEREST Name and Address of Borrower Water & Sewer District of Cabarrus County Post Office Box 707 Concord~ North Carolina 28026-0707 Telephone Number (704) 788-8104 Contact Person Mr. Blair D. Bennett FmHA Case Number 380130566000281 Loan Number 9101 Outstanding Principal Balance $5~574~000.00 Good Faith Deposit $278~700.00 Source of Final Payoff Funds: (Check more than one, if applicable) Tax-exempt financing Financing other than tax-exempt XX Reserves or other non-debt funds The above-named Borrower hereby advises the U.S. Department of Agriculture, Farmers Home Administration (FmHA) that it intends to purchase the FmHA Community Program Loan specified above pursuant to the Discount Purchase Program described in the Fact Sheet attached to the "Dear Community Program Borrower" letter dated March 14, 1988. Together with this Indication of Interest form, the Borrower is submitting a good faith deposit in the amount of $278~700.00, which is equal to 5 percent of the unpaid principal balance of the Borrower's FmHA Community Program loan referenced above.