BC 2010 09 20 Regular - Laserfiche WebLink

Home Browse Search

September 20, 2010 (Regular Meeting) Page 141 WHEREAS, as part of said plan of financing, the Corporation may also determine to issue Certificates of Participation and /or Limited Obligation Bonds in an aggregate principal amount not exceeding $14,637,160 to finance the advancement of moneys to the County pursuant to the installment financing contract between the County and the Corporation or one or more third parties; WHEREAS, there have been submitted to this meeting draft forms of the following documents (the "Financing Documents ") with respect to the financing for the Projects: (1) an Installment Financing Contract, proposed to be dated on or about October 1, 2010 (the "Contract(s) "), between the County and the Corporation (or one or more third parties) as counterparty, pursuant to which the Corporation (or such one or more third parties) will advance moneys to the County for the costs of the Projects and the County agrees to make periodic installment payments (the "Installment Payments ") to repay the moneys so advanced, with or without interest, as applicable; (2) a Deed of Trust, Security Agreement and Fixture Filing (the "Deed of Trust "), proposed to be dated on or about October 1, 2010, among the County as Grantor, the Corporation (or such one or more third parties) as Beneficiary and the trustee named therein, by which the County would secure its obligations to the Corporation (or such one or more third parties) under the Contract; and (3) an Indenture of Trust, proposed to be dated on or about October 1, 2010 (the "Trust Indenture "), between the Corporation and the trustee named therein, as trustee (the "Trustee "), pursuant to which there may be executed and delivered from time to time Certificates of Participation and /or Limited Obligation Bonds, including the Certificates of Participation and /or Limited Obligation Bonds (County of Cabarrus, North Carolina Installment Financing Contract), Series 2010D (the "Certificates and /or Bonds "), the proceeds of which will be used to advance the moneys to the County under the Contract; WHEREAS, the obligations of the County to make Installment Payments and other payments pursuant to the Contract shall constitute limited obligations of the County payable solely from currently budgeted appropriations of the County and shall not constitute a pledge of the faith and credit of the County within the meaning of any constitutional debt limitation; WHEREAS, no deficiency judgment may be rendered against the County in any action for breach of a contractual obligation under the Contract, and the taxing power of the County is not and may not be pledged in any way directly or indirectly or contingently to secure any moneys due under the Contract; and WHEREAS, the Board of Commissioners desires to approve the Financing Documents and to authorize other actions in connection therewith; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners, as follows: Section 1. All actions taken by or on behalf of the County to date to effectuate the proposed financing, including the selection of Southwest Securities, Inc., on its own behalf and as representative of the other underwriters (if any) (collectively, the "Underwriters ") and McGuireWoods LLP, as special counsel, are hereby ratified, approved and authorized pursuant to and in accordance with the transactions contemplated by the Financing Documents. Section 2. The Board of Commissioners hereby finds and confirms that (i) the Projects and the financing thereof by one or more installment financing contracts is necessary and expedient for the County; (ii) financing of the Projects by an installment financing contract(s), under the circumstances, is preferable to a bond issue by the County; (iii) the sums to fall due under the installment financing contract(s) are adequate and not excessive for their proposed purpose; (iv) the County's debt management procedures and policies are good and its debt will continue to be managed in strict compliance with law; (v) the increase in taxes, if any, necessary to meet the sums to fall due under the installment financing contract(s) will not be excessive; and (vi) the County is not in default regarding any of its debt service obligations.