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February 19, 2018 (Regular Meeting) Page 3455
<br />WHEREAS, the proceeds of the 2011A LOBS were loaned from the Corporation
<br />to the County pursuant to an Installment Financing Contract entered into under
<br />NCGS -Section 16DA-20 between the County and the Corporation, dated as of March
<br />1, 2011 (the "2011A Contract"), and such proceeds have heretofore been used by
<br />the County to provide financing for various public school projects;
<br />WHEREAS, in order to secure the obligations of the County under the 2011A
<br />Contract, the County also entered into a Deed of Trust, Security Agreement and
<br />Fixture Filing, dated as of March 1, 2011, (the "2011A Deed of Trust"), with
<br />the deed of trust trustee named therein, for the benefit of the Corporation and
<br />the 2011A Bond Trustee, as the assignee of the Corporation (collectively, the
<br />Corporation and the 2011A Bond Trustee are referred to herein as the
<br />"Beneficiary");
<br />WHEREAS, the only property, both initially and currently, posted as
<br />collateral under the 2011A Deed of Trust is the site of Mount Pleasant Middle
<br />School, including all improvements thereon (the "MPMS Site"), the legal
<br />description of which is attached hereto as Appendix A;
<br />WHEREAS, the MPMS Site is no longer being used as a public school facility
<br />by the Cabarrus County Board of Education;
<br />WHEREAS, the County desires to obtain a release of the MPMS Site from the
<br />lien of the 2011A Deed of Trust and sell the MPMS Site to a private purchaser
<br />free and clear of the lien of the 2011A Deed of Trust;
<br />WHEREAS, NCGS Section 160A-20 requires that some portion or all of the
<br />property financed with the proceeds of the 2011A LOBS be pledged as collateral
<br />under the 2011A Deed of Trust at all times;
<br />WHEREAS, the 2011A Deed of Trust provides a process whereby substitute
<br />property can be pledged as additional collateral under the 2011A Deed of Trust
<br />and the MPMS Site can thereafter be released from the lien of the 2011A Deed of
<br />Trust;
<br />WHEREAS, a portion of the proceeds of the 2011A LOBS was expended on
<br />improvements to the site of the Winecoff Elementary School (the "WE Site"), the
<br />legal description of which is attached hereto as Appendix B;
<br />WHEREAS, as required by NCGS Section 160A-20, and permitted by the terms
<br />of the 2011A Deed of Trust, the County desires to pledge the WE Site and all
<br />improvements thereon as additional collateral subject to the lien of the 2011A
<br />Deed of Trust;
<br />WHEREAS, after the addition of the WE Site as substitute collateral
<br />subject to the lien of the 2011A Deed of Trust, the County desires to implement
<br />the process provided in the 2011A Deed of Trust to effect the release of the
<br />MPMS Site from the lien of the 2011A Deed of Trust;
<br />WHEREAS, the Board of Commissioners desires to approve the
<br />substitution/modification of the collateral subject to the lien of the 2011A
<br />Deed of Trust that secures the 2011A LOBS and to authorize various other actions
<br />in connection therewith;
<br />NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners, as follows:
<br />Section 1. All actions taken by or on behalf of the County to date to
<br />effectuate the proposed substitution/modification of the collateral subject to
<br />the lien of the 2011A Deed of Trust are hereby ratified, approved and authorized.
<br />Section 2. The Board of Commissioners hereby finds and confirms for
<br />purposes of Section 1.14 of the 2011A Deed of Trust that (i) the insured value
<br />of the WE Site ($22,456,462) that will remain subject to the lien of the 2011A
<br />Deed of Trust after the release of the MPMS Site is not less than fifty percent
<br />(50%) of the aggregate principal component of the Installment Payments relating
<br />to the Outstanding 2011A LOBS ($7,317,500.00); (ii) the assessed tax valuation
<br />of the WE Site ($13,247,710) that will remain subject to the lien of the 2011A
<br />Deed of Trust after the release of the MPMS Site is not less than fifty percent
<br />(506) of the aggregate principal component of the Installment Payments relating
<br />to the Outstanding 2011A LOBS ($7,317,500.00); (iii) the release of the MPMS
<br />Site from the lien of the 2011A Deed of Trust will not prohibit the County's
<br />ingress, egress and regress to the WE Site, or materially interfere with the
<br />use of the WE Site and (iv) the County will be responsible and pay for all
<br />expenses in connection with the addition of the WE Site to, and release of the
<br />MPMS Site from, the lien of the 2011A Deed of Trust and all related matters.
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