01021996
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294
HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JANUARY 2, 1996
The Harnett County Board of Commissioners met in regular session
on Tuesday, January 2, 1996, in the Commissioners Meeting Room,.
County Office Building, Lillington, North Carolina.
Members present: H. L. Sorrell, Jr. , Chairman
Beatrice Bailey Hill, Vice Chairman
Dan B. Andrews .
Joseph T. Bowden
Walt Titchener
Staff present: Neil Emory, County Manager
Wm. A. (Tony) Wilder, Assistant County Manager
Dwight W. Snow, County Attorney
Vanessa W. Young, Finance Officer
Kay S. Blanchard, Clerk to the Board
Chairman Sorrell called the meeting to order at 9 a.m. and
Commissioner Titchener led the pledge of allegiance and prayer.
Commissioner Andrews made a motion to delete from the agenda the
item regarding review of proposed revisions to the Road Naming
Ordinance. Commissioner Titchener seconded the motion and it
passed with a unanimous vote.
Commissioner Hill moved for approval of the agenda as published
with the above noted deletion. Commissioner Bowden seconded the
motion and it passed with a unanimous vote.
Upon motion by Commissioner Bowden and seconded by Commissioner
Titchener, the Board unanimously approved the following items on
the consent agenda:
1- Minutes: Joint Meeting with Legislators, November 29, 1995
Regular Meeting, December 4, 1995
Closed Session, December 4, 1995
2. Budget Amendments: .
Interfund Transfer
Code 10-8701-1300 Advance to SW Phase II 70,000. increase
10-3990-0000 Fund Balance Appro. 70,000. increase
Tax Department
Code 10-4500-0330 Materials/Supplies 222. increase
10-4500-0740 Capital Outlay 222. decrease
Health Department
Code 10-7600-0261 Incentives 1,110. increase
10-7600-0260 Advertising 1,300. increase
10-7600-0330 Materials/Supplies 4,530. increase
10-7600-0460 Medical Supplies & Drugs 1,500. increase
10-7600-0740 Capital outlay-Equip. 5,294. increase
Revenue: 10-3480-0273 Immunization Action Plan 13,734. increase
Solid Waste Management
Code 58-6600-0080 Worker's Compo 3,770. increase
58-3990-0000 Fund Balance Appro. 3,770. increase
E911
Code 12-8900-0210 Building Equip/Rent 5,000. increase
12-8900-0040 Lump Sum to Set Up Dept. 5,000. decrease
Governmental Complex
Code 74-9021-0010 Construction 100. increase
74-9021-0800 Contingency 100. decrease .
Public Utilities (Northeast Metro)
Code 32-9001-0090 Unemployment Benefits 1,932. increase
32-3990-0000 Fund Balance Appro. 1,932. increase
Various
Code 10-7400-0090 Unemployment Benefits 170. increase
10-7600-0090 Unemployment Benefits 2,685. increase
10-3990-0000 Fund Balance Appro. 2,855. increase
Facilities Fees
Code 10-4900-0740 Capital Outlay-Equip. 1,500. increase
10-4900-0150 Maint. & Repair-Bldg. 1,500. decrease
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295
Soecial Revenue Fund
Deferred Tax
Code 82-8001-1040 Special School 1,995. increase
82-8002-1040 Anderson Creek 2,498. increase
82-8003-1040 Angier/Black River 2,028. increase
82-8004-1040 Averasboro 2,326. increase
82-8005-1040 Benhaven Fire l,122. increase
82-8006-1040 Benhaven Rescue 665. increase
82-8007-1040 Black River Fire 3,109. increase
82-8008-1040 Boone Trail 1,90l. increase
. 82-8009-1040 Buies Creek 1,169. increase
82-8010-1040 Coats Grove 1,495. increase
82-8011-1040 Cypress Creek 87. increase
82-8012-1040 Dunn/Averasboro 4,302. increase
82-8013-1040 Erwin Fire 389. increase
82-8014-1040 Flat Branch 748. increase
82-8015-1040 Flatwoods 626. increase
82-8016-1040 Grove Fire l,863. increase
82-8017-1040 Northwest Harnett Fire 2,743. increase
82-8018-1040 North Harnett Rescue 2,306. increase
82-8019-1040 Spout Springs 1,124. increase
82-8020-1040 Summerville 1,042. increase
82-8023-l040 Bunnlevel Fire 457. increase
82-3010-0102 Special School 1,995. increase
82-3010-0112 Anderson Creek 2,498. increase
82-3010-0122 Angier/Black River 2,028. increase
82-3010-0132 Black River Fire 3,109. increase
82-3010-0142 Buies Creek 1,169. increase
82-3010-0152 Erwin Fire 389. increase
82-3010-0162 Flat Branch 748. increase
82-3010-0172 Flatwoods 626. increase
82-3010-0182 Grove Fire 1,863. increase
82-3010-0192 Spout Springs 1,124. increase
82-3010-0202 Summerville 1,042. increase
82-3010-0212 North Harnett Rescue 2,306. increase
82-3010-0222 Boone Trail 1,90l. increase
82-3010-0232 Averasboro 2,326. increase
82-3010-0242 Benhaven Fire 1,122. increase
. 82-3010-0252 Benhaven Rescue 665. increase
82-3010-0262 Cypress Creek 87. increase
82-3010-0272 Dunn/Averasboro 4,302. increase
82-3010-0282 Coats/Grove 1,495. increase
82-3010-0292 Northwest Harnett Fire 2,743. increase
82-3010-0312 Bunnleve1 457. increase
Public Utilities (Various)
Interfund Transfers to Water Plant Expansion
Code 32-9001-1561 214. increase
33-9002-1561 144. increase
34-9003-1561 357. increase
35-9004-1561 168. increase
36-9005-l561 136. increase
37-9006-156l 3,834. increase
38-9007-1561 34. increase
39-9008-1561 112. increase
40-9009-1561 78. increase
Code 76-3980-0040 Interfund Transfer from
Public Utilities 5,077. increase
Public Utilities (Northeast Metro)
Code 32-9001-0040 Professional Services 5,100. increase
32-9001-0452 Tank Painting Reserve 2,500. increase
Revenue: 32-3990-0000 Fund Balance Appro. 7,600. increase
Public Utilities (South Central Water & Sewer)
Code 34-9001-0740 Capital Outlay-Equip. 2,500. increase
34-9003-1200 Capital Reserve 2,500. decrease
. Human Resources
Code 10-7400-0720 Support Services 25,149. increase
10-3480-0600 JTPA Funding 25,149. increase
Emerqency Services
Code 10-5300-0740 Capital Outlay 3,450. decrease
10-5300-0740 Capital Outlay 2,080. increase
10-5300-0360 Uniforms 1,000. increase
10-5300-0330 Materials/Supplies 370. increase
SERVICE WEAPON 3. Resolution to award service weapon to retiree (Attachment 1)
TINTED WINDOWS IN 4. Resolution concerning regulation regarding tinted windows in
VEHICLES vehicles (Attachment 2)
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296
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RECORDS DISPOSAL 5. Authorization for disposal of the following records in
Emergency Medical Services: 1990 EMS pati?nt ledger cards,
1990 ambulance call reports and trip tickets, 1990 receipt
books, 1990 dispatch reports, 1990 Medicare and Medicaid
payment reports, 1990 Medicare claims, 1990 run logs, and
July 1, 1990 - June 30, 1991 monthly and yearly reports
GIFT OF COMPUTER 6. Authorization for the Department on Aging to accept a
SYSTEM TO AGING computer system offered by a private firm
SUBDIVISION PLAT 7. Final subdivision plat for Heritage Village, Phase V,
HERITAGE VILLAGE Block E, Section III - owner: Kilarnold Corp., 31 lots,
. NC 24, Johnsonville Township, 19.32 acres, unzoned
8. Resolution requesting addition of road to State System
(Attachment 3)
Commissioner Andrews made a motion for the following
APPOINTMENTS appointments. Commissioner Bowden seconded the motion and it
passed with a unanimous vote.
Board of Health
Diane Lischin, Pharmacist, Rt. 6, Fuquay-Varina
3-year term to expire 12/31/98
Harnett Countv Public Librarv Board of Trustees
Connie Johnson, recommended by Town of Angier
Gerald Mann, recommended by City of Dunn
Gigi Hughes, recommended by Town of Erwin
3-year terms to expire 1/1/99
Harnett County PlanninQ Board
Cathy Johnson, Rt. 1, Coats
3-year term to expire 12/31/98
TOLL-FREE CALLING Mr. Tom Moore, Rt. 2, Fuquay-Varina, provided informal comments
FOR 552 EXCHANGE concerning request for toll-free calling telephone service
between Fuquay-Varina area (552) and Lillington.
PUBLIC HEARING Chairman Sorrell called to order a public hearing on a private
road name request for Donald H. Damon, proposed road name:
. FLOWERS DRIVE Flowers Drive located off NC 27W in Barbecue Township. George
Jackson, Planning Director, presented the application and stated
that the purpose of the public hearing was to obtain comments
from the public regarding the road name request. Chairman
Sorrell opened the meeting for comments. No comments were
ACTION TO NAME offered and Chairman Sorrell closed the public hearing.
Commissioner Bowden moved to approve naming Flowers Drive.
PRIVATE ROAD Commissioner Hill seconded the motion and it passed with a
unanimous vote.
STAFFING NEEDS Neil Emory, County Manager, briefed the Board on Building
FOR INSPECTIONS Inspections staffing needs and George Jackson, Planning Director,
provided an explanation and proposed plan to remedy the
situation. Commissioner Andrews made a motion to authorize the
inspector now working part-time at HUD to work full time at
Building Inspections and authorize creation of a part-time
inspector position at HUD. Commissioner Bowden seConded the
motion and it passed 4 to 1 with Chairman Sorrell casting the
dissenting vote.
Chairman Sorrell stated that the Board would now consider certain
SOUTH CENTRAL matters sitting in its capacity as the governing body of South
W & S Central Water & Sewer District. Al Bain, Public Utilities
Attorney, presented for the Board's consideration a resolution
authorizing application for renewal of bond anticipation notes.
Commissioner Hill moved for adoption of the resolution.
Commissioner Titchener seconded the motion and it passed with a
unanimous vote. (Attachment 4) Chairman Sorrell closed the South
. Central portion of the meeting.
REQUEST FOR TAX Neil Emory, County Manager, presented for the Board's
consideration a request from Patrick Main for a tax penalty
PENALTY RELEASE release. Bobby Wicker, Tax Administrator and Keith Faulkner,
PATRICK MAIN Business Property Tax Auditor, provided the Board with
information concerning the tax penalty. Commissioner Bowden
moved to approve the request. The motion died from lack of
second. Commissioner Andrews moved to deny the request from Mr.
Main for release of the tax penalty. Commissioner Titchener
seconded the motion and it passed 3 to 2 with Commissioners
Bowden and Hill casting the dissenting votes.
Neil Emory, County Manager, reported to the Board on a request
REQUEST FROM from Heritage Village in the Western Harnett area, for the County
HERITAGE VILLAGE to consider providing certain services from a site in their
community.
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Neil Emory, County Manager, presented for the Board's
consideration a resolution concerning request for toll-free
TOLL FREE CALLING telephone service between Fuquay-Varina area and Lillington.
BETWEEN LILLINGTON Commissioner Titchener moved for adoption of the resolution.
Commissioner Andrews seconded the motion and it passed with a
AND FUQUAY AREA unanimous vote. (Attachment 5)
Reports were filed with the Board from the Sheriff's Department,
Veterans Affairs, Emergency Medical Service, Health/Environmental
Health, Tax Department, Fire Marshal's Office, and General Fund
Revenues.
COUNTY MANAGER'S In the County Manager's report, Mr. Emory reported on the
REPORT following items: .
LANDFILL GAS RIGHTS - The County has entered into an agreement for landfill gas
rights with Harnett Landfill Gas, LLC. This matter was
discussed by the Board at the December 4th Board meeting.
CAPITAL NEEDS STUDY - The county has received a long range capital needs study
prepared by Harnett County Schools. The Board of
FROM BOARD OF ED. Commissioners will consider the study for approval
at the January 16th Board meeting.
REVI S ION S FOR - The County has received updated revisions submitted by
SC W & S FmHA regarding the South Central Water & Sewer District
Project, Phase III.
Commissioner Bowden moved that the Board go into closed session
to discuss matters relating to the location of a business in
Harnett County, pursuant to the provisions of N.C. General
Statute, section 143-318.11 (a)(4). Commissioner Andrews
seconded the motion and it passed with a unanimous vote.
Commissioner Bowden moved that the Board come out of closed
CLOSED SESSION session. Commissioner Andrews seconded the motion and it passed
LOCATION OF BUSINESS with a unanimous vote.
Commissioners Andrews moved to approve a subordination agreement
SUBORDINATION AGREE. with The CIT Group/Credit Finance, Inc. ("CIT") regarding Boyt
THE CIT GROUP/ Limited Partnership. Commissioner Bowden seconded the motion and
CREDIT FINANCE, INC. it passed with a unanimous vote. (Attachment 6) .
There being no further business, Commissioner Andrews moved that
the meeting adjourn. Commissioner Bowden seconded the motion and
ADJOURNMENT it passed with a unanimous vote. The Harnett County Board of
Commissioners meeting, January 2, 1996, duly adjourned at 11 a.m.
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H. L. Sorrell, Jr./)plhman
Ka:x ,t. fYJ1.AtI',lvmd
Kay Blanchard, Clerk to the Board
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Attachment 1.
NORTH CAROLINA
HARNETT COUNTY
. RFSOLlITION
THAT, WHEREAS, William A. strickland began his Harnett County
Law Enforcement career on 07-01-75; and
WHEREAS, after twenty consecuti ve years of distinguished
service to Harnett County, William A. Strickland did retire; and
WHEREAS, North Carolina General Statute 20-187.2(a) provides
that the governing body of law enforcement agency may in its
discretion, award to a retiring member upon hiS/her request for
their service side arm; and
WHEREAS, according to North Carolina General Statute 14-402
and 14-409.1, proper permits have been obtained (as attached) in
order to receive the side arm.
NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of
Commissioners that William A. Strickland be awarded the following
service side arm for one dollar ($1. 00). Glock Model 17 Serial
Number HH 764.
Duly adopted this .2..r...d day of ~)\.kAYV , 19 9~ .
I
. HARNETT COUNTY BOARD OF COMMISSIONERS
;//~f
/ . , ~l~irman
ATTEST:
K~, t. ~\MLJ
- qjl.erk to the Board
Attachment 2.
NORTH CAROLINA
HARNETT COUNTY
RESOLUTION
. TINTED WINDOWS
WHEREAS, the Harnett County Board of Commissioners is
concerned about the safety and welfare of men and women who serve
in the field of law enforcement on the local, state and national
level; and
WHEREAS, N.C.G.S. Article 54B permits the carrying of
concealed weapons effective December 1, 1995, increasing the
likelihood that motor vehicles will contain some type of weapon;
and
WHEREAS, N.C.G.S. 20-127 regulates the transparency of
windows on motor vehicles and the tinted film available for
installation on motor vehicle windows in this state.
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NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board
of Commissioners that we encourage the North Carolina General
Assembly to review their current regulations regarding tinted
windows and adopt stronger regulations, if needed, to protect the
men and women who serve in the field of law enforcement when
approaching vehicles with non-transparent windows. BE IT FURTHER
RESOLVED that the Board of Commissioners requests that the
Commissioner of Motor Vehicles strongly enforce current
regulations of N.C.G.S. 20-127.
This the 2nd day of January, 1996.
HARNETT COUNTY BOARD OF COMMISSIONERS .
7/4/
/ H. L. sorrell.{ Jr., Chairman
ATTEST:
1/
K~1. ~d
Kay S. Blanchard
Clerk to the Board
Attachment 3.
HARNETT COU1~ ~.l
NORTH CAROLINA
RESOLUTION
BE IT RESOLVED that the Harnett County Board of .
Commissioners do hereby, by proper execution of this document,
request that the North ~arolina Department of Transportation add
to the State's Secondary Road System for maintenance, the below
listed street:
Overhills Creek Subdivision
Marvin Drive
Adopted this 2nd day of January, 1996.
HARNETT COUNTY BOARD OF COMMISSIONERS
//~d
./ H. L.Csorrell,~,'Chairman
ATTEST:
J<~ /,.: ~~pM .
Kay . Blanchard
Clerk to the Board
_.-
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Attachment 4.
B........ACTS FROM MINUTES OJ' BOARD OJ' COMMISSI"",,'&:.AS
OJ' THE COUNTY OJ' BARNETT,
SITTING AS .A~ Guw6ANING BODY OF
SO.....A C..:...~...RAL WATER AND S&:.1III6A DISTRICT OF HARNETT COUNTY:
The Board of Commissioners of the County of Harnett, sitting as the governing
body of the South Central Water and Sewer District of Harnett County, convened
in a special session during its meeting held on January 2, 1996 at 9:00 a.m. in
. the Harnett County Office Building, 102 East Front Street, Lillington, North
Carolina.
Board Members present were: H.L. Sorrell, Jr., (Chairman), Walt Titchener,
Beatrice Bailey Hill, Dan B. Andrews and Joseph T. Bowden. No members were
absent.
* * * * * *
Commissioner Hill presented the following
resolution and moved that it be adopted:
WHEREAS, the bond order hereinafter described has taken
effect and Board of commissioners of the County of Harnett,
sitting as the governing body of South Central Water and Sewer
District of Harnett County, has issued a $700,000 Water Bond
Anticipation Note dated January 18, 1995, payable January 17,
1996 to borrow money for the purposes for which bonds are
. authorized to be issued by said bond order; and
WHEREAS, the Board of commissioners of the County of
Harnett, sitting as the governing body of South central Water and
Sewer District of Harnett County, desires to renew the foregoing
note in anticipation of the receipt of the proceeds of the sale
of said bonds, as hereinafter provided; NOW, THEREFORE,
BE IT RESOLVED by the Board of Commissioners of the
county of Harnett, sitting as the governing body of South Central
Water and Sewer District of Harnett County (the "Issuer"), as
follows:
(1) The outstanding $700,000 Water Bond Anticipation
Note payable January 17, 1996 which has been issued in
anticipation of the sale of the bonds authorized by a bond order
adopted by the Board of Commissioners of the County of Harnett,
. sitting as the governing body of the Issuer, on December 6, 1993,
shall be renewed by the issuance of $700,000 Water Bond
Anticipation Notes, in anticipation of the receipt of the
proceeds of the sale of the bonds authorized to be issued by said
order. Said notes shall consist of one note of the denomination
of $700,000, numbered 1, shall be dated January 17, 1996, shall
be payable January 15, 1997 and shall bear interest at the rate
of 4.28% per annum, payable at maturity.
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302
(2) The Chairman of the governing body of the Issuer
and Clerk of the Issuer are hereby authorized to make application
to the Local Government Commission of North carolina for its
approval of said note in the manner prescribed by The Local
Government Finance Act. The Local Government Commission is
hereby requested to deliver said note through the state Treasurer
in exchange for said outstanding note upon payment of the .
interest payable with respect to said outstanding note to the
holder of said outstanding note.
(3) The Issuer covenants to comply with the provisions
of the Internal Revenue Code of 1986, as amended (the "Code"), to
the extent required to preserve the exclusion from gross income
of interest on the note for Federal income tax purposes.
(4) The Issuer hereby represents that ( i) the proposed
$700,000 Water Bond Anticipation Note, dated January 17, 1996
authorized by Section 1, hereof, is not a private activity bond
as defined in the Code and (ii) the Issuer, together with any
subordinate entities of the Issuer or any entities which issue
obligations on behalf of the Issuer, reasonably expects that it
will not issue more than $10,000,000 of tax-exempt obligations
(other than private activity bonds which are not qualified .
501(c) (3) bonds) during the 1996 calendar year. In addition, the
Issuer hereby designates the above-mentioned note as a "qualified
tax-exempt obligation" for the purposes of section 265(b) (3) of
the Code.
(5) The note shall be sold to First-citizens Bank &
Trust Company at private sale without advertisement at the
interest rate of 4.28% per annum, provided that the Local
Government Commission shall determine that such price is in the
best interest of the Issuer.
(6) The power to make any election on behalf of the
Issuer with respect to the arbitrage rebate provisions of the
Code applicable to said note is hereby delegated to the Chairman
of the governing body of the Issuer and the Finance Officer of
the Issuer. .
The motion having been duly seconded and the resolution
having been considered, it was adopted by the following vote:
AYES: 5
NAYS: 0
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Attachment 5.
NORTH CAROLINA
HARNETT COUNTY
RESOLUTION
WHEREAS, the Harnett C t
. supported past efforts to e~~~briB~ard of Commissioners has
capability between Harnett countySco~~~iti:~~ea~~ll
WHEREAS, this' support h b
social ties which exist betw::n een ~ased upon t~e economic and
our ocal commun~ties; and
WHEREAS, the Northwest H tt
Telephone (552) has now expre:~~~ c~mmunity served by Carolina
local phone call capability with t~n nterest in establishing
e community of Lillington; and
WHEREAS, these communities share both economic and social
interest.
NOW, THEREFORE BE IT RESOL
of Commissioners does here VED that the Harnett County Board
local service between thesby endor~e the concept of establishing
the North Carolina utilitie c~mmu~ ties and would request that
for establishing such serv~~e ~mm ssion allow the formal process
documentation has been sUbmitte~.proceed once the appropriate
Duly adopted this 2nd day of January, 1996.
HARNETT COUNTY BOARD OF COMMISSIONERS
. $~y
ATTEST: / H. L. sorrel~., Chairman
K~l ~JLmd
Kay . Blanchard, Clerk
Attachment 6.
Sl)~QRP~A1JO~ AGREEMENT
TIllS SUBORDINATION AGREEMENT (the "Agreement"), dated as of this
day of December, 1995, is made by the County of Harnett, North Carolina ("Harnett") in
favor of The CIT Group/Credit Finance, Inc. ("CIT").
1. Back2l'0und.
(a) Boyt Limited Partnership ("Borrower") is indebted to Harnett pursuant to a
certain Promissory Note in an original principal arnount of $345,207 (the "Note"), with a current
principal balance of $ . executed by Welsh Sporting Goods Corp. and assumed by
. Borrower and issued pursuant to a certain Loan Agreement (the "Loan Agreement"). The Note is
secured by (i) an interest in the Collateral (as defined below) pursuant to a certain Security
Agreement (the "Security Agreement") and (ii) a lien on the Real Estate (as defined below)
pursuant to a certain Deed of Trust (the "Deed of Trust").
(b) crr is contemplating entering into a financing arrangement with Borrower
which is secured by the Collateral, but is not secured by the Real Estate. crr will not enter into
such financing arrangement unless Harnett subordinates its security interest in the Collateral to crr
pursuant to the terms of this Agreement and agrees to the other tenns and conditions set forth
herein.
(c) Therefore, in consideration of the foregoing and the covenants set forth
below, the parties have signed this Agreement.
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2. Definitions. For purposes of this Agreement:
(a) "Crrs Debt" means all obligations, liabilities and indebtedness from time to
time owing by Borrower to crr or any participant of crr under crrs Documents or otherwise,
including without limitation the outstanding balance of principal and accrued interest from time to
time owing by B.....vNer to crr pursuant to crrs Documents and all costs and expenses
(including attorneys' fees) owing by Borrower to crr under CIT's Documents.
(b) "Crrs Documents" means any and all ae,..........ents, instruments and
documents, together with any amendments thereto or replacements th.... '......1, evidencing or securing .
any financing ..........gement or arrangements between crr and B........Ner, including without
limitation the Loan and Security Agreement of even date herewith, as amended and supplemented.
(c) "Collateral" means all inventory, contract rights, accounts receivable, goods,
fixtures, equipment, personal property (including cash) of Borrower and other property of any sort
whatsoever.
(d) "Harnett's Documents" means any and all agreements. instruments and
documents, together with any amendments thereto or replacements thereof, now or hereafter
evidencing or securing any financing arrangement or arrangements between Harnett and
B.....vNer, including without limitation the Note, the Loan Agreement, the Deed of Trust and the
Security A6' .........ent.
3. Subordination of Lien on Collateral.
(a) Except as provided in Section 3(d) below, this Agreement shall not in any
way limit Harnett's ability to take any action available to Harnett under Harnett's Documents or
applicable law in order to enforce Harnett's lien on the Real Estate created by the need of Trust.
(b) Subject to the terms hereof, Harnett agrees to subordinate, and does hereby
subordinate any and all security interests, liens or encumbrances (whether consensual, statutory or
otherwise) that it either now has or may at any time hereafter have or acquire, under any
instrument, document or agreement now or hereafter existing, or otherwise, in all or any portion of .
the Collateral, whether now owned or hereafter acquired, and any such security interest, lien or
encumbrance shall be junior and subordinate to any and all liens and security interests crr now
has or may at any time hereafter have or acquire in the Collateral, whether arising under any
instrument, document or ag........ent now or hereafter existing or otherwise. The priority of such
security interests, liens, or claims in, to or against the Collateral set forth herein shall govern
irrespective of the time or manner of the filing of any financing statement or mortgage and whether
crr or Harnett holds pOClClP4lc;ion of any such Collateral. Notwithstanding the foregoing, the lien
subordination effected by this Section 3 shall not apply to the lien against the Real Estate created
by the Deed of Trust. Harnett waives each and every right which it now has or hereafter may have,
under the laws of the State of North Carolina and by virtue of the Deed of Trust, to levy or distrain
upon the Collateral and Harnett recognizes and acknowledges that crr's security interest in the
Collateral is superior to any lien, right or claim of title which Harnett now has or hereafter may
have or assert in or to the Collateral under the Deed of Trust or such laws.
(c) Regardless of whether a default exists under any of Harnett's Documents,
Harnett shall not, without the prior written consent of crr, take any action to enforce any security
interest in or lien on, or exercise any other rights with respect to, the Collateral, until all of crrs
Documents have been terminated and all of crrs Debt has been fully paid and satisfied. The
foregoing limitation shall not apply to enforcement of Hamett's lien on the Real Estate created by
the Deed of Trust.
(d) In the event BUllv..ver defaults on its obligations to crr and, as a result, crr .
undertakes to enforce its security interest in the Collateral, or in the event Harnett is entitled to
possession of the Real Estate, Harnett agrees that: (i) it will not hinder, delay or otherwise prevent
crr from taking any and all action to the extent permitted under law which crr deems necessary
to enforce its security interest and realize thereon and (ii) to the extent that Harnett is entitled to
possession of the Real Estate, Harnett will permit crr to remain on the Real Estate, conduct
private or public uce sales on the Real Estate or remove the Collateral from the Real Estate
within ninety (90) days after crr declares such default.
(e) Upon any proposed sale by Borrower or ('IT of any of the Collateral to a
third party in an ann's length transaction, Harnett will consent to such sale and take such ~~ons
and execute such documents as crr may request, to release Harnett's Hen on such Collateral.
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,,~.,,_,i' "~,,,,"-I --~
4. R~l]r~entatiort~. W_arranti~~ artd Covenants. Harnett represents, warrants
and covenants that it has not assigned or transferred, and agrees that it will not assign or transfer-at
any time this Agreement remains in effect. any right, claim or int... ,.;..)~ of any kind in or to the
Collateral or Harnett's Documents. unless such assignment or transfer is made subject to this
Agreement
5. Marshallin~. Harnett hereby waives any rights Harnett has or may have in
the future to require CIT to marshall its collateral, and agrees that CIT may proceed against its
collateral in any order that it deems appropriate in the exercise of its absolute discretion.
. 6. Miscellaneous.
(a) I!ARl\IbU CONSENTS THAT ANY SERVICE OF PROCESS MAY
BE MADE BY SERVICE UPON HARNbll OR BY CERuJ'mD OR REGISTERED MAIL
DIREClbD TO ~tll AT ITS ADDRESS SET FORlH BELOW; HOWEVER,
NOTInNG CONTAINED HEREIN SHALL PREVENT SERVICE OF PROCESS IN ANY
OTHER MANNER PElUvUlltU BY APPLICABLE LAW. This Agreement contains the entire
agreement among the parties hereto with respect to this subject. and may only be modified by a
writing signed by each of the parties hereto.
(b) I!ARl\Ibl1 AND CIT WAIVE THE RIGHT TO A JURY TRIAL IN
CONNECTION WTIH ANY SUIT, ACTION OR PROCEEDING SEEKING
ENFORCEMENT OF SUCH PARTY'S RIGHTS UNDER TIllS AGREEMENT.
(c) All notices or consents required under the terms and provisions of this
Agreement shall be in writing and sent to the following addresses:
If to Harnett: County of Harnett, North Carolina
Attention:
!fto CIT: The crr Group/Credit Finance, Inc.
. 10 South LaSalle Street
Chicago, Illinois 60603
Attention: Gayle Arlen. Esq.
Notices shall be deemed to have been duly given (i) if delivered personally or otherwise actually
received, (ii) if sent by overnight delivery service, (iii) if mailed by first class United States mail,
postage ....'''...aid, registered or certified, with return receipt requested, or (iv) if sent by telex with
telex confinnation of receipt (with duplicate notice sent by United States mail as provided above).
Notice mailed as provided. in clause (iii) above shall be effective upon the expiration of five (5)
business days after its deposit. Notice given in any other manner described in this paragraph shall
be effective upon receipt by the addressee thereof; orovided, however, that if any notice is tendered
to an addressee and delivery th,...,.."i is refused by such addressee, such notice shall be effective
upon such tender.
(d) The tenn "Borrower" shall include, without limitation any successor or
assign ofB...uv.ver, including without limitation a receiver, trustee or debtor in possession. This
Agreement shall be a continuing agreement and shall remain in full force and effect
(notwithstanding the insolvency, liquidation or dissolution of Borrower), until all ofCITs Debt has
been indefeasibly paid in full and CITs Documents have been tenninated.
(e) Notwithstanding anything to the contrary contained In Harnett's
Documents, Harnett hereby consents to Borrower's obtaining CIT's Debt, entering into eIT's
Documents and granting to CIT a lien on the Collateral, and agrees that the same shall not
. constitute a breach of Harnett's Documents.
Harnett represents that copies of all of Harnett's Documents and all
(f)
amendments thereto and modifications thereof are attached hereto as Exhibit A and that all of
Harnett's Documents are currently in full force and effect.
--~ ---. --~ _r_,__n ___ ___ _____n
u_ .
306
IN WITNESS WHEREOF. the parties hereto have signed this
A& ....:....ent as of ~e date first written above.
COUNTY OF ~r.ll. NORlH
CAROLINA
Bdk4. .
Chairman of the B~.of Commissioners
THE crr GROUP/CREDIT FINANCE. .
INC.
By
Its
Borrower hereby acknowledges receipt of a copy of the foregoing Agreement. and
agrees to be bound by the tenns and provisions thereof, and to do every other act and thing
necessary or appropriate to carry out such tenns and provisions. Any violation of any of the tenns
and provisions of the foregoing Agreement by Borrower shall constitute an Event of Default under
errs Documents.
BOYT LlMJJ~D PARTNERSHlP
By: BOYT HOLDING L INe.
Its General Partner
Bv
Its
By: BOYT HOLDING n. INe.
Its General Partner
Bv .
Its
.
"--