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355 <br /> <br /> A. Variable Rate: Years 1-5: Prime Rate Minus 1/4% <br /> Years 6-10: Prime Rate <br /> Year 11-20: Prime Rate Plus 1/4% <br /> Absolute Cap of 13% for 20 years. <br /> B. Fixed Rate: 10.35% Fixed for 20 years. Quarterly <br /> principal and interest payments. <br /> C. Fixed Rate: 10.50% Fixed for 20 years. Semi-annual principal <br /> and interest payments. <br />Mr. Bennett recommended that the Board accept the fixed rate of 10.35 <br />percent for 20 year and make quarterly principal and interest payments. <br /> UPON MOTION of Commissioner Melvin, seconded by Chairman Lentz and <br />unanimously carried, the Board accepted the fixed rate of 10.35 percent <br />for 20 years with quarterly principal and interest payments for the Bond <br />to be issued by the Water and Sewer District of Cabarrus County subject to <br />the following proposal dated May 9, 1988, from Mr. Michael D. Owens of <br />Wachovia Bank & Trust Company, N.A. <br /> <br />May 9, 1988 <br /> <br />Water and Sewer District of Cabarrus County <br />77 Union Street, South <br />Concord, North Carolina 28025 <br /> <br />Attention: Blair Bennett, Finance Director <br /> <br />Subject: Farmer's Home Administration Bond Refinancing <br /> <br />Dear Mr. Bennett: <br /> <br /> Wachovia Bank and Trust Company, N.A. (the Bank) is pleased to extend <br />our commitment to purchase up to $5,236,647 in principal amount of the <br />obligation (the Bond) to be issued by the Water and Sewer District of <br />Cabarrus County, North Carolina (the Issuer). The proposed obligation <br />represents a taxable general obligation bond of the Issuer in conjunction <br />with the refinancing of the tax-exempt bonds held by the Farmer's Home <br />Administration (FMHA). The proceeds of the Bond, together with certain <br />other funds of the issuer are to be applied by the issuer to redeem the <br />general obligation bond currently held by FMHA. The terms of this commit- <br />ment are as follows: <br /> 1. Amount - The bond shall be for an amount up to $5,236,647. <br /> 2. Term - The bond shall be issued in the form of a single, fully <br /> registered bond. The bond shall be dated the date of initial <br /> delivery to the Bank and shall mature 20 years from its date of <br /> issuance. <br /> 3. Repayment - Repayment of the Bond shall be made in equal <br /> quarterly, consecutive payments of principal and interest. The <br /> amount of each payment shall be calculated using a standard <br /> mortgage amortization schedule based upon a 20 year term and a <br /> fixed interest rate as stated in Section IV. <br /> 4. Interest Rate - Interest will accrue on the Bond from the date of <br /> closing. The principal face amount of the Bond or as much as <br /> shall be outstanding from time to time shall bear interest (sub- <br /> ject adjustment as hereinafter provided) payable quarterly in <br /> arrears on the 10th day of each new quarter month, commencing <br /> October 10th computed at the following rates. <br /> A. Variable Rate: Years 1-5: Prime Rate Minus 1/4% <br /> Years 6-10: Prime Rate <br /> Year 11-20: Prime Rate Plus 1/4% <br /> Absolute Cap of 13% for 20 years. <br /> B. Fixed Rate: 10.35% Fixed for 20 years. Quarterly <br /> principal and interest payments. <br /> C. Fixed Rate: 10.50% Fixed for 20 years. Semi-annual <br /> principal and interest payments. <br /> 5. Prepayment - The borrower will have the right to prepay the <br /> principal amount of the Bond in full or in part subject to the <br /> following prepayment conditions: <br /> A. Under the variable rate option there is not prepayment <br /> penalty. <br /> B. Payment will be closed for the first 5 years: <br /> <br /> <br />