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FY2021 ACFR
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FY2021 ACFR
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1/19/2022 2:22:09 PM
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1/19/2022 2:20:03 PM
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Date
1/19/2022
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CABARRUS COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2021 The equipment was pledged as collateral for the 2018 Lease. The Lease has numerous events of default specified therein. An occurrence of an event of default could result in an acceleration of the then outstanding amount of the 2018 Lease. After an event of default, the collateral securing the 2018 Lease can be foreclosed upon, sold in a foreclosure sale and the foreclosure proceeds applied to the payment of the amounts due to the owners of the 2018 Lease. However, under current North Carolina law, no deficiency judgment may be rendered against the County for breach of any obligation under the 2018 Lease. The remedies afforded to the owners of the 2018 Lease after an event of default are limited to those of a secured party under the laws of the State of North Carolina, including foreclosing on the collateral securing the 2018 Lease. The assets acquired through capital leases are as follows:GovernmentalActivitiesCounty owned asset: Equipment 691,142$ Less: Accumulated depreciation(368,609) Total 322,533$ The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2021, are as follows: Year Ending June 30GovernmentalActivities2022 115,191$ 2023 115,191 2024 115,190 Total minimum lease payments345,572 Less: amount representing interest(11,137) Present value of minimum lease payments334,435$ 89
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