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December 17, 2007 (Regular Meeting) Page 658
<br />(H-8) Resolution Approving Installment Contraat Financing for Public School
<br />Proiecte in an Aggregate Principal Amount up to $63,000,000.00
<br />Note: Item G-5 was removed from the Consent Agenda at the request of
<br />Commissioner Privette.
<br />After quoting a provision of the North Carolina Constitution,
<br />Commissioner Privette stated his intent to vote against the resolution.
<br />Pam Dubois, Deputy County Manager, pointed out that Certificates of
<br />Participation are guaranteed by collateralizing real property whereas General
<br />Obligation Bonds are approved by the voters.
<br />UPON MOTION of Vice Chairman Juba, seconded by Commissioner Carruth
<br />with Chairman White, Vice Chairman Juba and Commissioners Carruth and Mynatt
<br />voting for and Commissioner Privette voting against, the Board adopted the
<br />following resolution:
<br />Resolution No. 2007-32
<br />RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC
<br />SCHOOL PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO
<br />$63,000,000 AND THE EXECUTION AND DELIVERY BY THE CABARRUS COUNTY
<br />DEVELOPMENT CORPORATION OF CERTIFICATES OF PARTICIPATION RELATED
<br />THERETO, AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED
<br />DOCUMENTS IN CONNECTION THEREWITH, AND PROVIDING FOR CERTAIN
<br />OTHER RELATED MATTERS
<br />WHEREAS, the Board of Commissioners desires to approve a proposed plan
<br />of financing in an aggregate principal amount of up to $63,000,000, which
<br />plan would involve the entry by the County into an installment financing
<br />contract with the Cabarrus County Development Corporation (the "Corporation")
<br />pursuant to North Carolina General Statutes 160A-20, as amended, the proceeds
<br />of which would be used to pay all or a portion of the costs of acquiring
<br />real property and constructing and equipping new public school facilities,
<br />including, without limitation, a new high school, and various real and
<br />personal property improvements related to the foregoing (collectively the
<br />"2008 Project"), and under said installment financing contract the County
<br />would secure the repayment by the County of the moneys advanced pursuant to
<br />such contract by granting a security interest in and lien on all or a portion
<br />of the 2008 Project;
<br />WHEREAS, as part of said plan of financing, the Corporation will issue
<br />Certificates of Participation in an aggregate principal amount not exceeding
<br />$63,000,000 to finance the advancement of moneys to the County pursuant to
<br />the installment financing contract between the County and the Corporation;
<br />WHEREAS, there have been submitted to this meeting draft forms of the
<br />following documents (the "Financing Documents") with respect to the financing
<br />for the 2008 Project:
<br />(1) an Installment Financing Contract, proposed to be dated as of
<br />January 1, 2008 (the "Contract"), between the County and the Corporation as
<br />counterpart y, pursuant to which the Corporation will advance moneys to the
<br />County for the costs of the 2008 Project and the County agrees to make
<br />periodic installment payments (the "Installment Payments") to repay the
<br />moneys so advanced, with interest;
<br />(2) a Deed of Trust and Security Agreement (the "Deed of Trust"),
<br />proposed to be dated as of January 1, 2008, among the County as Grantor, the
<br />Corporation as Beneficiary and the trustee named therein, by which the County
<br />would secure its obligations to the Corporation under the Contract;
<br />(3) an Indenture of Trust, proposed to be dated as of January 1, 2006
<br />(the "Trust Indenture"), between the Corporation and the trustee named
<br />therein, as trustee (the "Trustee"), pursuant to which there are to be
<br />executed and delivered from time to time Certificates of Participation,
<br />including the Certificates of Participation (County of Cabarrus, North
<br />Carolina Installment Financing Contract), Series 2006 (the "2008
<br />Certificates"), the proceeds of which will be used to advance the moneys to
<br />the County under the Contract;
<br />(4) a Preliminary Official Statement to be dated on or about January
<br />8, 2008 (the "Preliminary Official Statement") which, as supplemented with
<br />certain pricing and other permitted omitted information, is to be the
<br />Official Statement to be dated on or about January 24, 2008 (the "Official
<br />Statement"), pursuant to which the 2008 Certificates are to be offered and
<br />sold to the public; and
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