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406 <br /> <br />amortization schedule based upon a 20 year term and the fixed <br />interest rate described in Section 4 below. <br />Interest Rate - Interest will accrue on the Bond from the date of <br />issuance. The principal face amount of the Bond or as much as <br />shall be outstanding from time to time shall bear interest at a <br />fixed rate equal to 10.35% per annum, payable semiannually in <br />arrears in June and December, commencing in December 1988. <br />Prepayment - Prepayment of the Bond shall be closed for 5 years. <br />The issuer will have the right to prepay the principal amount of <br />the Bond in full or in part subject to the following prepayment <br />conditions: <br /> Year Premium <br /> 6 103% <br /> 7 103 <br /> 8 102 <br /> 9 102 <br /> 10 101 <br /> 11 101 <br /> 12 101 <br /> 13+ PAR <br />Determination of taxability - At closing, Bond Counsel shall <br />certify in writing to the Bank that interest on the Bond is exempt <br />from all State of North Carolina income taxes, and that the Bond <br />is exempt from the State of North Carolina tax on intangible <br />personal property. <br />Documentation - Ail documentation evidencing the issuance of the <br />Bond shall be prepared or reviewed by counsel acceptable to the <br />Bank and such documentation shall be in the form acceptable to the <br />Bank's legal counsel. At closing, there shall be delivered to the <br />Bank, together with a duplicate original of each of the Bond <br />documents, an executed counterpart of the legal opinion of bond <br />counsel, addressed to the Bank, which shall provide, among other <br />things, that the Bond has been duly authorized, executed and <br />delivered, and that the interest thereon is exempt from all <br />taxation in the State of North Carolina. <br />The Bond documentation shall also include a Bond Purchase Agree- <br />ment containing certain covenants, representations, and warranties <br />relating to the Bond. <br />Term of Commitment - The commitment made herein shall expire <br />unless accepted by the Issuer on or before June 15, 1988. This <br />commitment will terminate if the Bond proceeds are not disbursed <br />by July 11, 1988. Thereafter, neither the Bank nor the Issuer <br />have any further obligation to the other. <br />Fees - Ail legal fees incident to this transaction will be paid by <br />the Issuer, including without limitation all legal fees and <br />expenses incurred by the Bank. In addition, the Issuer will pay <br />to the Bank an amount of $2 per thousand on the principal amount <br />of the Bond for management and advisory services rendered. <br /> <br /> We appreciate the opportunity to provide a proposal on this important <br />matter. Please indicate your acceptance of this commitment by signing the <br />space provided and returning the enclosed copy to my attention. <br /> <br />Sincerely, <br />/s/ Michael D. Owens <br />Michael D. Owens <br />Assistant Vice President <br /> <br />ACCEPTED THIS 14TH DAY OF JUNE, 1988. <br />Water and Sewer District of Cabarrus County <br />By: /s/ James W. Lentz <br /> <br />Chairman, Board of Commissioners <br />Water and Sewer District of Cabarrus County <br /> <br /> During review of the Water and Sewer Utility Fund budget, the Board by <br />general consent approved the following changes as presented by Mr. Blair D. <br />Bennett, Finance Director. <br /> 1) Increase the appropriation to the Mt. Pleasant Impoundment by <br /> $350,000.00. <br /> <br /> <br />