2011/11/07 RESOLUTION AUTHORIZING THE EXE & DELIVERY OF AN INSTALLMENT FINANCING CONTRACT IN THE AMT OF $249,485 W/RBC BANK TO FINANCE THE ACQUISITION OF CERTAIN EQUIP FOR USE BY THE CTY OF HARNETTRESOLUTION
The governing body for the County of Harnett, North Carolina, held a regular meeting at
the Admin. Bldg, 102 E. Front St, Lillington the regular place of meeting, on November 7, 2011 at
9:00am a.m. /p.m.
Present: Chairman Timothy B. McNeill, Vice Chair Beatrice Hill, Dan Andrews, Jim Burgin and Gary House
Absent: N/A
Also Present: County Manager Soott Sauer, Tony Wilder, Dwight Snow, Kimberly Honeycutt and Margaret R. Wheeler
Commissioner Bugin
introduced the following resolution which was read:
RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF
AN INSTALLMENT FINANCING CONTRACT IN THE AMOUNT OF
$249,485.00 WITH RBC BANK (USA) TO FINANCE THE ACQUISITION
OF CERTAIN EQUIPMENT FOR USE BY THE COUNTY OF HARNETT,
NORTH CAROLINA, AUTHORIZING THE EXECUTION AND
DELIVERY OF RELATED INSTRUMENTS, AND DETERMINING
OTHER MATTERS IN CONNECTION THEREWITH
BE IT RESOLVED by the governing body for the County of Harnett, North Carolina (the
"Unit'):
Section 1. The governing body of the Unit does hereby find and determine:
a) The County of Harnett proposes the acquisition of certain equipment, which may
include fixtures as more fully described in the hereinafter mentioned Contract
(collectively, the "Equipment');
b) After consideration, the governing body of the Unit has determined that the most
advantageous manner of financing thereof is by an installment contract pursuant
to Section 160A -20 of the General Statutes of North Carolina, as amended;
C) Pursuant to Section 160A -20, the Unit is authorized to finance the acquisition of
personal property, including fixtures, by installment contracts that create a
security interest in the property financed to secure repayment of the financing;
and
d) RBC Bank (USA) ( "RBC Bank (USA) ") has proposed that RBC Bank (USA)
enter into an Installment Financing Contract with the Unit to finance the
Equipment pursuant to which RBC Bank (USA) will lend the Unit the amount of
$249,485.00 (the "Contract ") and a related Escrow Agreement between the Unit
and RBC Bank (USA) (the "Escrow Agreement ").
Section 2. The governing body of the Unit hereby authorizes and directs the
County Manager and Finance Officer to execute, acknowledge and deliver the Contract and
Escrow Agreement on behalf of the Unit in such form and substance as the person executing and
delivering such instruments on behalf of the Unit shall find acceptable. The Clerk is hereby
authorized to affix the official seal of the County of Harnett to the Contract and the Escrow
Agreement and attest the same.
Section 3. The proper officers of the Unit are authorized and directed to execute and
deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and
to do or cause to be done any and all other acts and things necessary or proper for carrying out
this Resolution and the Contract and the Escrow Agreement.
Section 4. Notwithstanding any provision of the Contract or the Escrow Agreement, no
deficiency judgment may be rendered against the Unit in any action for breach of a contractual
obligation under the Contract or the Escrow Agreement and the taxing power of the Unit is not
and may not be pledged directly or indirectly to secure any moneys due under the Contract, the
security provided under the Contract being the sole security for RBC Bank (USA) in such
instance.
Section 5. The Unit covenants that, to the extent permitted by the Constitution and laws
of the State of North Carolina, it will comply with the requirements of the Internal Revenue
Code of 1986, as amended (the "Code ") as required so that interest on the Unit's obligations
under the Contract will not be included in the gross income of RBC Bank (USA).
Section 6. The Unit hereby represents that it reasonably expects that it, all subordinate
entities thereof and all entities issuing obligations on behalf of the Unit will issue in the
aggregate more than $10,000,000 of tax-exempt obligations, including the Contract (not counting
private - activity bonds except for qualified 501(c)(3) bonds as defined in the Code) during
calendar year 2008. In addition, the Unit hereby designates the Contract and its obligations
under the Contract as a "non -bank qualified tax- exempt obligation" for the purposes of the Code.
Section 7. This Resolution shall take effect immediately upon its passage.
Upon motion of Commissioner Burgin seconded by Vim ChainnanHill ' members of
the governing body, the foregoing resolution entitled "RESOLUTION AUTHORIZING THE
EXECUTION AND DELIVERY OF AN INSTALLMENT FINANCING CONTRACT IN
THE AMOUNT OF $249,485.00 WITH RBC BANK (USA) TO FINANCE THE
ACQUISITION OF CERTAIN EQUIPMENT, AUTHORIZING THE EXECUTION AND
DELIVERY OF RELATED INSTRUMENTS, AND DETERMINING OTHER MATTERS
IN CONNECTION THEREWITH" was passed by the following vote:
Ayes:
Nays:
PASSED AND ADOPTED this 7th day of November 2011
1, Margaret Regina Wheeler , Clerk for the County of Harnett, North Carolina DO
HEREBY CERTIFY that the foregoing has been carefully copied from the actually recorded
minutes of the governing body of said County of Harnett at a regular meeting held on
November? 2011 ,the record having been made in the minutes of said governing body,
and is a true copy of so much of said minutes as relates in any way to the passage of a resolution
providing for the authorization of the Installment Financing Contract referred to therein.
I DO HEREBY FURTHER CERTIFY that a schedule, stating that the regular meetings of
the Council are held on the first and third Monday of each month at 9:00 am/7:00 pm a.m. /p.m.,
respectively, at 102 E. Front Street, Ullington North Carolina, was on file with me for at
least seven calendar days prior to said meeting, all in accordance with G.S. 143 - 318.12.
WITNESS my hand and corporate seal of said County of Harnett, this 7th day of
November 2011
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Original Loan Amount: $249,485.00
Loan Date: November.1 2011
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