07192001318
HARNETT COUNTY BOARD OF COMMISSIONERS
Minutes of Special Meeting
July 19, 2001
The Harnett County Board of Commissioners met ins special session on Thursday, Jul •
p Y� Y
19, 2001 in the County Administration Building, 102 East Front Street, Lillington,
North Carolina.
Members present: Teddy J. Byrd, Chairman
Beatrice Bailey Hill, Vice Chairman
Tim McNeill
Staff present: Neil Emory, County Manager
Kay S. Blanchard
Chairman Byrd called the meeting to order at 4:00 p.m.
ISSUANCE OF Neil Emory, County Manager, presented for the Board's consideration the proposed
$940, 000 WATER issuance of a $940,000 fully registered Water Bond Series 2001A and a $254,000 fully
BOND SERIES 2001A registered Water Bond, Series 2001B for Riverside Water and Sewer District
and$254, 000 WATER extension projects.
BOND SERIES 2001B
Commissioner Hill moved to authorize sale of the bonds noted above and to authorize
the Chairman and Clerk to execute all necessary documents associated with the sale of
the water bonds. Commissioner McNeill seconded the motion and it passed
unanimously. (Attachment 1) •
There being no further business, Commissioner McNeill moved for adjournment.
Commissioner Hill seconded the motion and it passed unanimously. The Harnett
County Board of Commissioners' speI
l meeting, July 19, 2001, duly adjourned at
4:05 p.m. n /]
. tsyr
l%i_ J. &-g.+u�
Kay S4 Blanchard, Clerk to the Board
Attachment 1.
EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS OF THE
COUNTY OF HARNETT, SITTING AS THE GOVERNING BODY OF
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
•
The Board of Commissioners of the County of Harnett, sitting as the governing
body of the Riverside Water and Sewer District of Harnett County, convened
in a special session on July 19, 2001 at 4:00 p.m. in the Harnett County
Office Building, 102 East Front Street, Lillington, North Carolina.
Board members present were: Teddy J. Byrd, Beatrice Bailey Hill, Tim
McNeill. Dan B. Andrews and Walt Titchener were absent.
Commissioner Beatrice B. Hill presented the following resolution and moved
that it be adopted:
WHEREAS, the bond order hereinafter described has taken effect and the Board of
Commissioners of the County of Harnett (the "Board"), sitting as the governing body of Riverside
Water and Sewer District of Harnett County (the "Issuer"), desires to make provision for the
issuance of a $940,000 portion of the bonds authorized by said bond order; and
WHEREAS, the Board of the Issuer desires to sell the bonds at private sale without
advertisement at a rate of interest not exceeding 4.75% per annum; and
WHEREAS, the Board of the Issuer has been informed of United States of America's
undertaking to purchase said bonds at the rate of 4.75% per annum, NOW THEREFORE,
• BE IT RESOLVED by the Board of Commissioners of the County of Harnett, sitting as the
governing body of the Issuer, as follows:
(1) The Issuer shall issue its bonds of the aggregate principal amount of $940,000 pursuant
to and in accordance with the water bond order adopted by the Board of the Issuer on October 21,
1996. The bonds shall be designated "Water Bond, Series 2001A," and referred to herein as the
"Bonds." The period of usefulness of the capital project to be financed by the issuance of the Bonds
is a period of forty years computed from the date of the Bonds.
(2) The Bonds shall be payable in annual installments on June 1 as follows:
Year
Principal
Amount
Year
Principal
Amount
Year
Principal
Amount
2004
$11,000
2018
$18,000
2032
$35,500
2005
11,500
2019
18,500
2033
35,000
2006
12,000
2020
19,500
2034
37,000
2007
12,500
2021
20,000
2035
38,500
2008
13,000
2022
20,500
2036
40,000
2009
13,500
2023
22,000
2037
42,000
2010
14,000
2024
23,000
2038
44,000
2011
14,500
2025
24,500
2039
44,000
2012
15,000
2026
25,500
2040
44,000
2013
15,500
2027
27,000
2041
44,000
2014
16,000
2028
28,000
2015
16,500
2029
30,000
2016
17,000
2030
30,000
2017
17,500
2031
32,000
(3) The Bonds shall be dated June 1, 2001 (unless awarded to the United States of America
acting by and through Rural Utilities Service, an agency of the United States Department of
Agriculture, in which case the Bonds shall be dated as of the date of delivery thereof), and shall
bear interest from their date until they shall mature at a rate which shall not exceed 4.75% per
annum. Such interest shall be payable semi-annually on June 1 and December 1 in each year;
provided, however, that if the Bonds shall be purchased by the United States of America, the
interest on such Bonds to the maturity thereof shall be payable on June 1, 2002 and annually
thereafter on the 1 st day of June of each year.
(4) The Bonds shall be issued as fully registered bonds without coupons in the denomination
of $500 each or any integral multiple thereof and numbered in accordance with the system of the
• hereinafter designated bond registrar (the "Multiple Bonds"), or, at the option of the purchaser, as a
single fully registered bond without coupons in the denomination of $940,000 (the "Single Bond")
payable in installments. If issued as Multiple Bonds, the Bonds shall bear the facsimile signatures
of the Chairperson of the governing body of the Issuer and the Clerk of the Issuer and a facsimile
of the corporate seal of the Issuer and the Certificate of Approval of the Local Government
Commission shall bear a facsimile signature of the Secretary of said Commission. If issued as a
Single Bond, the Bond shall be signed by the Chairperson of the governing body of the Issuer and
the Clerk of the Issuer, the corporate seal of the Issuer shall be impressed thereon and the Certificate
of Approval of the Local Government Commission shall be signed by a designated assistant of said
Commission.
(5) Within ninety days after the receipt by the Issuer of the written request of the registered
owner of the Single Bond, the Issuer will, at its own expense, prepare and execute Multiple Bonds
in the form hereinafter set forth, of type, composition and printed on paper of customary weight and
strength, in an aggregate principal amount equal to the unpaid principal amount of the Single Bond,
and having maturities corresponding to the principal installments of the Single Bond then unpaid;
and the Issuer will cause the Multiple Bonds to be presented to the transfer agent to be designated
by the Issuer (the "Transfer Agent") for endorsement and for dating the authentication blank thereon •
and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the
Single Bond.
(6) Except as in the next succeeding paragraph provided, interest on the Bonds shall be paid
by check by the Issuer or a paying agent to be designated by the Issuer (the 'Paying Agent"), and
mailed to the registered owner of record as of 15 days prior to the interest payment date at his
address as it appears on the bond registry books of the Transfer Agent, and principal of the Bonds
shall be paid by check by the Paying Agent upon presentation of the Bonds for payment.
The Single Bond purchased by the United States of America shall be payable by the Issuer
in installments of principal and interest without presentation.
(7) So long as the Bonds are held or insured by the United States of America, whether as a
Single Bond or as Multiple Bonds, the principal thereon may be prepaid in whole or in part in
inverse order of maturity without premium at any time.
(8) The Bonds not held or insured by the United States of America and maturing on and
after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the •
Issuer on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a
redemption price equal to the principal amount of each bond to be redeemed together with accrued
interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2
of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or
part thereof between the redemption date and the maturity date of each bond to be redeemed,
provided that such premium shall not exceed two percent (2%) of such principal amount. If less
than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be
selected by the Issuer in such manner as it may determine. If less than all of the Bonds of different
maturities are called for redemption, the Bonds to be redeemed shall be called in the inverse order
of their maturities.
If less than all of the principal amount of a Bond is to be redeemed, the Issuer shall
exchange a bond of the denomination representing the portion of the Bond not redeemed to the
registered owner in exchange for the Bond a portion of which is to be redeemed. Whenever the
Issuer shall elect to redeem Bonds, notice of such redemption of Bonds, stating the redemption date,
redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their •
numbers and further stating that on such redemption date there shall become due and payable upon
each bond or portion thereof so to be redeemed, the principal thereof, redemption premium and
interest accrued to the redemption date and that from and after such date interest thereon shall cease
to accrue, shall be given not less than 30 days nor more than 45 days prior to the redemption date in
writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses
appear on the records of the Transfer Agent, as bond registrar, but any failure in respect of such
mailing will not affect the validity of the redemption.
2
(9) The Bonds are transferable by the registered owner thereof or his duly authorized
attorney at the principal office of the Transfer Agent or the Issuer, as appropriate, upon surrender of
the Bonds, accompanied by a duly executed instrument of transfer in form and with guaranty of
signature satisfactory to the Transfer Agent or the Issuer, as appropriate, and upon payment of any
taxes or other governmental charges incident to such transfer. Upon any such transfer a new
registered bond without coupons of the same maturity and in the same aggregate principal amount
will be issued to the transferee. The person in whose name the Bond is registered shall be deemed
the owner hereof for all purposes, and the Issuer, the Paying Agent and the Transfer Agent shall not
• be affected by any notice to the contrary.
The Bonds are exchangeable at the sole expense of the Issuer at any time, upon ninety days'
notice, at the request of the registered owner thereof and upon surrender of the Bonds to the
Transfer Agent or the Issuer, as appropriate, together with an assignment duly executed by the
registered owner or his attorney or legal representative in such form as shall be satisfactory to the
Transfer Agent or the Issuer, as appropriate, for fully registered Bonds in the denomination of $500
each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal
amount of the Bonds and in the form of such fully registered multiple Bonds as is provided for in
this resolution authorizing the issuance of the Bonds.
(10) The Multiple Bonds and the provisions for the registration thereof, for the approval
of the Multiple Bonds by the Secretary of the Local Government Commission, and for
authentication of the Multiple Bonds by the Transfer Agent shall be in substantially the following
•
•
form:
No. R
(Form of Multiple Bonds)
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
INTEREST
RATE
4.75%
REGISTERED OWNER:
PRINCIPAL SUM:
WATER BOND, SERIES 2001A
DATE OF
ORIGINAL
MATURITY ISSUE
June 1, 2001
DOLLARS
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter
referred to as the 'District"), a county water and sewer district in the State of North Carolina,
acknowledges itself indebted and for value received hereby promises to pay to the registered owner
named above on the date specified above, upon the surrender hereof, the principal sum shown above
and to pay to the registered owner hereof interest thereon from the date of this bond until it shall
mature at the rate per annum as specified above, payable semi-annually on June I and December I
of each year. Principal of this bond is payable by check by First -Citizens Bank & Trust Company,
in Raleigh, North Carolina, as paying agent, or by the duly appointed alternate or successor paying
agent (the 'Paying Agent"), in such coin or currency of the United States of America as at the time
of payment shall be legal tender for payment of public and private debts. Interest on this bond is
payable by check by the Paying Agent mailed to the registered owner hereof at his address as it
appears on the bond registry books of First -Citizens Bank & Trust Company, in Raleigh, North
NYC 386477.1 56910 00747 7115101 927: 16 PM 7
32P
Carolina, as transfer agent (the "Transfer Agent"), at the close of business on the fifteenth day of the
calendar month (whether or not a business day) next preceding each interest payment date, in such
coin or currency of the United States of America as at the time of payment shall be legal tender for
payment of public and private debts.
This bond is transferable by the registered owner hereof or his duly authorized attorney at
the principal office of the Transfer Agent, upon surrender of this bond, accompanied by a duly
executed instrument of transfer in form and with guaranty of signature satisfactory to the Transfer
Agent, and upon payment of any taxes or other governmental charges incident to such transfer.
•
Upon any such transfer a new registered bond without coupons of the same maturity and in the
same aggregate principal amount will be issued to the transferee. The person in whose name this
bond is registered shall be deemed the owner hereof for all purposes, and the District, the Paying
Agent and the Transfer Agent shall not be affected by any notice to the contrary.
This bond is exchangeable at the sole expense of the District at any time, upon ninety days'
notice, at the request of the registered owner hereof and upon surrender of this bond to the Transfer
Agent together with an assignment duly executed by the registered owner or his attorney or legal
representative in such form as shall be satisfactory to the Transfer. Agent, for fully registered bonds
in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount
equal to the unpaid principal amount of this bond and in the form of such fully registered multiple
bonds as is provided for in the resolution authorizing the issuance of this bond.
This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E
of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act,
Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of
•
the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay
capital costs of providing water facilities for the District. The issuance of this bond and the
contracting of the indebtedness evidenced thereby were approved by a majority of the qualified
voters of the District voting at an election held on January 7, 1997.
The bonds not held or insured by the United States of America and maturing on and after
June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the
District on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a
redemption price equal to the principal amount of each bond to be redeemed together with accrued
interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2
of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or
part thereof between the redemption date and the maturity date of each bond to be redeemed,
provided that such premium shall not exceed two percent of such principal amount. If less than all
of the bonds of different maturities are called for redemption, the bonds to be redeemed shall be
called in the inverse order of their maturities. If less than all of the bonds of any maturity are called
for redemption, the bonds to be redeemed shall be selected by the District in such manner as it may
•
determine. If less than all of the principal amount of a bond is to be redeemed, the District shall
exchange a bond of the denomination representing the portion of the bond not redeemed to the
registered owner in exchange for the bond, a portion of which is to be redeemed. Whenever the
District shall elect to redeem bonds, notice of such redemption of bonds, stating the redemption
date, redemption price and identifying the bonds or portions thereof to be redeemed by reference to
their numbers and further stating that on such redemption date there shall become due and payable
upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium
323
•
and interest accrued to the redemption date, shall be given not less than 30 days nor more than 45
days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at
their addresses as such addresses appear on the records of the Transfer Agent, but any failure in
respect of such mailing will not affect the validity of the redemption. So long as this bond is held or
insured by the United States of America, the principal thereof may be prepaid in whole or in part in
inverse order of maturity without premium at any time .
It is hereby certified and recited that all conditions, acts and things required by the
Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to
or in the issuance of this bond, exist, have been performed and have happened, and that the amount
of this bond, together with all other indebtedness of the District, is within every debt and other
limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby
pledged to the punctual payment of the principal of and interest on this bond in accordance with its
terms.
This bond shall not be valid or become obligatory for any purpose until the certifications
hereon shall have been signed by authorized representatives of the Local Government Commission
of North Carolina and the Transfer Agent.
IN WITNESS WHEREOF, the District has caused this bond to bear the facsimile signatures
of the Chairperson of the governing body of the District and the Clerk of the District and a facsimile
of the corporate seal of the District to be imprinted hereon, and this bond to be dated June 1, 2001.
(DISTRICT)
(SEAL)
(facsimile signature)
Chairperson, governing body of
Harnett County Water and Sewer
District
(facsimile signature)
Clerk, Harnett County Water and
Sewer District
Transfer Agent's Certificate of Authentication
This bond is one of the bonds of the issue designated herein and issued under the within -
mentioned bond order.
FIRST -CITIZENS BANK & TRUST COMPANY
By:
Date of Authentication
Authorized Signatory
CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
The issue hereof has been approved under the provisions of The
Local Government Bond Act.
(facsimile signature)
Secretary of the Local Government Commission
324
ASSIGNMENT
For value received the undersigned registered owner thereof hereby sells, assigns, and
transfers unto the within bond and all rights
thereunder and hereby irrevocably constitutes and appoints attorney to
register the transfer of said bond on the books kept for registration thereof, with full power of
substitution in the premises. •
Signature Guaranteed: Dated:
NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this
by guarantor institution participating in the assignment must correspond with the name
Securities Transfer Agents Medallion Program as it appears upon the fact of the within
or in such other guarantee program in bond in every particular, without alteration
accordance with Securities and Exchange or enlargement or any change whatever.
Commission Rule 17 Ad-15.
(11) The Single Bond, the provisions for assignment thereof and for approval thereof by
the Secretary of the Local Government Commission to be endorsed thereon shall be in substantially
the following form:
(form of Single Bond)
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
WATER BOND, SERIES 2001A
R-1 $940, 000
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter
called the "District"), a county water and sewer district in the State of North Carolina,
acknowledges itself indebted and for value received, hereby promises to pay to [UNITED STATES
OF AMERICA, ACTING BY AND THROUGH RURAL UTILITIES SERVICE, AN AGENCY
OF THE UNITED STATES DEPARTMENT OF AGRICULTURE], or its registered assigns, the
principal sum of $940,000 on the first day of June in years and installments, as follows:
Year
Principal
Amount
Year
Principal
Amount
Year
Principal
Amount
2004
$11,000
2018
$18,000
2032
$33,500
2005
11,500
2019
18,500
2033
35,000
2006
12,000
2020
19,500
2034
37,000
2007
12,500
2021
20,000
2035
38,500
2008
13,000
2022
20,500
2036
40,000
2009
13,500
2023
22,000
2037
42,000
2010
14,000
2024
23,000
2038
44,000
2011
14,500
2025
24,500
2039
44,000
2012
15,000
2026
25,500
2040
44,000
2013
15,500
2027
27,000
2041
44,000
2014
16,000
2028
28,000
2015
16,500
2029
30,000
2016
17,000
2030
30,000
2017
17,500
2031
32,000
NYC 386477,1 56910 00747 7115101 927. 16 PM 14
u
•
,2
in such coin or currency of the United States of America as at the time of payment shall be legal
tender for the payment of debts due the United States of America, and to pay interest on the balance
of said principal sum from time to time remaining unpaid, in like coin or currency, at the rate of
four and seventy-five hundredths per centum (4.75%) per annum on June 1, 2002, and annually
thereafter on June 1 of each year, until the principal amount hereof has been paid.
Payments of the installments of principal and interest then due and payable on this bond
shall be made without presentation or surrender hereof. Upon final payment of principal and
•
interest, this bond shall be surrendered to the District for cancellation.
This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E
of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act,
Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of
the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay
capital costs of providing water facilities for the District. The issuance of this bond and the
contracting of the indebtedness evidenced thereby were approved by a majority of the qualified
voters of the District voting at an election held on January 7, 1997.
This bond is exchangeable at the sole expense of the District at any time, upon ninety days'
notice, at the request of the registered owner hereof and upon surrender of this bond to the District,
for fully registered bonds, in the denomination of $500 each or any integral multiple thereof, in an
aggregate principal amount equal to the unpaid principal amount of this bond and in the form of
such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of
the bonds.
This bond may be assigned and upon such assignment the assignor shall promptly notify the
•
District by registered mail, and the assignee shall surrender the same to the District or its designated
transfer agent for transfer on the registration records, or in exchange for fully registered bonds in the
denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal
to the unpaid principal amount of such single registered bond and bearing maturities corresponding
to the principal installments on such single registered bond then unpaid, and every such assignee
shall take this bond subject to such condition. The person in whose name this bond is registered
shall be deemed the owner thereof for all purposes.
So long as this bond is held or insured by the United States of America, the principal in-
stallments hereof may be prepaid in whole or in part in inverse order of maturity at any time.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to
or in the issuance of this bond, exist, have been performed and have happened, and that this bond is
within every limitation prescribed by said Constitution or statutes. The faith and credit of the
District are hereby pledged to the punctual payment of the principal of and interest on this bond in
•
accordance with its terms.
IN WITNESS WHEREOF, the District has caused this bond to be signed by the Chairperson
of the governing body of the District and the Clerk of the District and sealed with the corporate seal
of the District and this bond to be dated
(DISTRICT)
(SEAL)
Chairperson, governing body of Riverside Water
and Sewer District of Harnett County
Clerk, Riverside Water and Sewer District
of Harnett County
326
CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
The issuance of the within bond has been approved under the
provisions of The Local Government Bond Act.
Secretary of the Local Government Commission
By: •Designated Assistant
ASSIGNMENT
For value received the undersigned registered owner thereof hereby sells, assigns, and
transfers unto
the within bond and all rights
thereunder and hereby irrevocably constitutes and appoints attorney to
register the transfer of said bond on the books kept for registration thereof, with full power of
substitution in the premises.
Signature Guaranteed: Dated:
NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this
by guarantor institution participating in the assignment must correspond with the name
Securities Transfer Agents Medallion Program as it appears upon the fact of the within
or in such other guarantee program in bond in every particular, without alteration
accordance with Securities and Exchange or enlargement or any change whatever.
Commission Rule 17 Ad- IS.
(12) Actions taken or to be taken by officials of the Issuer to select paying agents, transfer •
agents and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-
8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina,
are hereby authorized and approved.
(13) The Bonds shall be sold to the United States of America acting by and through Rural
Utilities Service, an agency of the United States Department of Agriculture, at private sale without
advertisement in the form of a single registered bond bearing interest at the rate of 4.875% per
annum, provided that the Local Government Commission shall determine that such price is in the
best interest of the Issuer.
(14) The Chairperson of the governing body of the Issuer and the Clerk of the Issuer are
hereby authorized and directed to cause the Bonds to be prepared and, when they shall have been
duly sold by the Local Government Commission, to execute the Bonds and to turn the Bonds over
to the State Treasurer of North Carolina or to the Transfer Agent for delivery to the purchaser or.
purchasers to whom the Bonds may be sold by said Commission.
(15) The Issuer covenants to comply with the provisions of the Internal Revenue Code of
1996, as amended (the "Code"), to the extent required to preserve the exclusion from gross income •
of interest on the Bonds for federal income tax purposes.
(16) The Issuer hereby represents that (i) the proposed $940,000 Water Bond, Series
2001A, is not a private activity bond as defined in the Code and (ii) the Issuer, together with any
subordinate entities of the Issuer and any entities which issue obligations on behalf of the Issuer,
reasonably expects that it will not issue and designate in the aggregate more than $10,000,000 of
tax-exempt obligations (other than private activity bonds which are not qualified 501(c)(3) bonds)
during the current calendar year. In addition, the Issuer hereby designates the Bonds as "qualified
tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
327
(17) The power to make any election on behalf of the Issuer with respect to the arbitrage
rebate provisions of the Code applicable to the Bonds is hereby delegated to the Chairperson of the
governing body of the Issuer and the Clerk of the Issuer.
The motion having been duly seconded, and the resolution having been considered, it was
adopted by the following vote:
AYES: 3
• NAYS: 0
Attachment 2.
EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS OF THE
COUNTY OF HARNETT, SITTING AS THE GOVERNING BODY OF
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
The Board of Commissioners of the County of Harnett, sitting as the governing
body of the Riverside Water
and Sewer
District of Harnett County, convened
in a special session on July
19, 2001
at 4:00 p.m. in the Harnett County
Office Building,102 East Front Street,
Lillington, North Carolina.
Board members present were:
Teddy J.
Byrd, Beatrice Bailey Hill, Tim
McNeill. Dan B. Andrews and
Walt Titchener
were absent.
Commissioner Beatrice B. Hill presented the following resolution and moved
that it be adopted:
WHEREAS, the bond order hereinafter described has taken effect and the Board of
Commissioners of the County of Harnett (the "Board"), sitting as the governing body of Riverside
Water and Sewer District of Harnett County (the "Issuer"), desires to make provision for the
issuance of a $254,000 portion of the bonds authorized by said bond order, and
WHEREAS, the Board of the Issuer desires to sell the bonds at private sale without
advertisement at a rate of interest not exceeding 4.875% per annum; and
WHEREAS, the Board of the Issuer has been informed of United States of America's
undertaking to purchase said bonds at the rate of 4.875% per annum, NOW THEREFORE,
• BE IT RESOLVED by the Board of Commissioners of the County of Harnett, sitting as the
governing body of the Issuer, as follows:
(1) The Issuer shall issue its bonds of the aggregate principal amount of $254,000 pursuant
to and in accordance with the water bond order adopted by the Board of the Issuer on October 21,
1996. The bonds shall be designated "Water Bond, Series 2001B," and referred to herein as the
Series 2001B NYC 386481, 156910007477/15/019-1&04 PM
28
"Bonds." The period of usefulness of the capital project to be financed by the issuance of the Bonds
is a period of forty years computed from the date of the Bonds.
(2) The Bonds shall be payable in annual installments on June 1 as follows:
Year
Principal
Amount
Year
Principal
Amount
Year
Principal
Amount
2004
$3,000
2018
$5,500
2032
$9,000
2005
3,000
2019
5,500
2033
9,000
2006
3,000
2020
6,000
2034
10,000
2007
3,000
2021
6,000
2035
11,000
2008
3,000
2022
6,000
2036
11,000
2009
3,500
2023
6,000
2037
12,000
2010
3,500
2024
6,500
2038
12,000
2011
3,500
2025
6,500
2039
12,000
2012
3,500
2026
7,000
2040
12,000
2013
4,000
2027
7,000
2041
12,000
2014
4,000
2028
7,000
2015
4,500
2029
7,000
2016
5,000
2030
8,000
2017
5,000
203]
8,500
(3) The Bonds shall be dated June 1, 2001 (unless awarded to the United States of America
acting by and through Rural Utilities Service, an agency of the United States Department of
Agriculture, in which case the Bonds shall be dated as of the date of delivery thereof), and shall
bear interest from their date until they shall mature at a rate which shall not exceed 4.875% per
annum. Such interest shall be payable semi-annually on June 1 and December 1 in each year;
provided, however, that if the Bonds shall be purchased by the United States of America, the
interest on such Bonds to the maturity thereof shall be payable on June 1, 2002 and annually
•
thereafter on the 1 st day of June of each year. •
(4) The Bonds shall be issued as fully registered bonds without coupons in the denomination
of $500 each or any integral multiple thereof and numbered in accordance with the system of the
hereinafter designated bond registrar (the "Multiple Bonds"), or, at the option of the purchaser, as a
single fully registered bond without coupons in the denomination of $254,000 (the "Single Bond")
payable in installments. If issued as Multiple Bonds, the Bonds shall bear the facsimile signatures
of the Chairperson of the governing body of the Issuer and the Clerk of the Issuer and a facsimile
of the corporate seal of the Issuer and the Certificate of Approval of the Local Government
Commission shall bear a facsimile signature of the Secretary of said Commission. If issued as a
Single Bond, the Bond shall be signed by the Chairperson of the governing body of the Issuer and
the Clerk of the Issuer, the corporate seal of the Issuer shall be impressed thereon and the Certificate
of Approval of the Local Government Commission shall be signed by a designated assistant of said
Commission.
(5) Within ninety days after the receipt by the Issuer of the written request of the registered
owner of the Single Bond, the Issuer will, at its own expense, prepare and execute Multiple Bonds
in the form hereinafter set forth, of type, composition and printed on paper of customary weight and •
strength, in an aggregate principal amount equal to the unpaid principal amount of the Single Bond,
and having maturities corresponding to the principal installments of the Single Bond then unpaid;
and the Issuer will cause the Multiple Bonds to be presented to the transfer agent to be designated
by the Issuer (the "Transfer Agent") for endorsement and for dating the authentication blank thereon
and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the
Single Bond.
(6) Except as in the next succeeding paragraph provided, interest on the Bonds shall be paid
by check by the Issuer or a paying agent to be designated by the Issuer (the 'Paying Agent"), and
329
mailed to the registered owner of record as of 15 days prior to the interest payment date at his
address as it appears on the bond registry books of the Transfer Agent, and principal of the Bonds
shall be paid by check by the Paying Agent upon presentation of the Bonds for payment.
The Single Bond purchased by the United States of America shall be payable by the Issuer
in installments of principal and interest without presentation.
(7) So long as the Bonds are held or insured by the United States of America, whether as a
• Single Bond or as Multiple Bonds, the principal thereon may be prepaid in whole or in part in
inverse order of maturity without premium at any time.
(9) The Bonds not held or insured by the United States of America and maturing on and
after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the
Issuer on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a
redemption price equal to the principal amount of each bond to be redeemed together with accrued
interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2
of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or
part thereof between the redemption date and the maturity date of each bond to be redeemed,
provided that such premium shall not exceed two percent (2%) of such principal amount. If less
than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be
selected by the Issuer in such manner as it may determine. If less than all of the Bonds of different
maturities are called for redemption, the Bonds to be redeemed shall be called in the inverse order
of their maturities.
•
If less than all of the principal amount of a Bond is to be redeemed, the Issuer shall
denomination the of the Bond not redeemed to the
exchange a bond of the representing portion
registered owner in exchange for the Bond a portion of which is to be redeemed. Whenever the
Issuer shall elect to redeem Bonds, notice of such redemption of Bonds, stating the redemption date,
redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their
numbers and further stating that on such redemption date there shall become due and payable upon
each bond or portion thereof so to be redeemed, the principal thereof, redemption premium and
interest accrued to the redemption date and that from and after such date interest thereon shall cease
to accrue, shall be given not less than 30 days nor more than 45 days prior to the redemption date in
writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses
appear on the records of the Transfer Agent, as bond registrar, but any failure in respect of such
mailing will not affect the validity of the redemption.
(9) The Bonds are transferable by the registered owner thereof or his duly authorized
attorney at the principal office of the Transfer Agent or the Issuer, as appropriate, upon surrender of
the Bonds, accompanied by a duly executed instrument of transfer in form and with guaranty of
•
signature satisfactory to the Transfer Agent or the Issuer, as appropriate, and upon payment of any
taxes or other governmental charges incident to such transfer. Upon any such transfer a new
registered bond without coupons of the same maturity and in the same aggregate principal amount
will be issued to the transferee. The person in whose name the Bond is registered shall be deemed
the owner hereof for all purposes, and the Issuer, the Paying Agent and the Transfer Agent shall not
be affected by any notice to the contrary.
The Bonds are exchangeable at the sole expense of the Issuer at any time, upon ninety days'
notice, at the request of the registered owner thereof and upon surrender of the Bonds to the
Transfer Agent or the Issuer, as appropriate, together with an assignment duly executed by the
330
registered owner or his attorney or legal representative in such form as shall be satisfactory to the
Transfer Agent or the Issuer, as appropriate, for fully registered Bonds in the denomination of $500
each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal
amount of the Bonds and in the form of such fully registered multiple Bonds as is provided for in
this resolution authorizing the issuance of the Bonds.
(10) The Multiple Bonds and the provisions for the registration thereof, for the approval
of the Multiple Bonds by the Secretary of the Local Government Commission, and for
authentication of the Multiple Bonds by the Transfer Agent shall be in substantially the following
form:
No. R-
(Form of Multiple Bonds)
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
INTEREST
RATE
4.875%
REGISTERED OWNER:
PRINCIPAL SUM:
WATER BOND, SERIES 2001B
DATE OF
ORIGINAL
MATURITY ISSUE
June 1, 2001
DOLLARS
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter
referred to as the "District"), a county water and sewer district in the State of North Carolina,
acknowledges itself indebted and for value received hereby promises to pay to the registered owner
named above on the date specified above, upon the surrender hereof, the principal sum shown above
and to pay to the registered owner hereof interest thereon from the date of this bond until it shall
mature at the rate per annum as specified above, payable semi-annually on June 1 and December 1
of each year. Principal of this bond is payable by check by First -Citizens Bank & Trust Company,
in Raleigh, North Carolina, as paying agent, or by the duly appointed alternate or successor paying
agent (the 'Paying Agent"), in such coin or currency of the United States of America as at the time
of payment shall be legal tender for payment of public and private debts. Interest on this bond is
payable by check by the Paying Agent mailed to the registered owner hereof at his address as it
appears on the bond registry books of First -Citizens Bank & Trust Company, in Raleigh, North
Carolina, as transfer agent (the "Transfer Agent"), at the close of business on the fifteenth day of the
calendar month (whether or not a business day) next preceding each interest payment date, in such
coin or currency of the United States of America as at the time of payment shall be legal tender for
payment of public and private debts.
This bond is transferable by the registered owner hereof or his duly authorized attorney at
the principal office of the Transfer Agent, upon surrender of this bond, accompanied by a duly
executed instrument of transfer in form and with guaranty of signature satisfactory to the Transfer
Agent, and upon payment of any taxes or other governmental charges incident to such transfer.
Upon any such transfer a new registered bond without coupons of the same maturity and in the
same aggregate principal amount will be issued to the transferee. The person in whose name this
bond is registered shall be deemed the owner hereof for all purposes, and the District, the Paying
Agent and the Transfer Agent shall not be affected by any notice to the contrary.
•
is
•
331
This bond is exchangeable at the sole expense of the District at any time, upon ninety days'
notice, at the request of the registered owner hereof and upon surrender of this bond to the Transfer
Agent together with an assignment duly executed by the registered owner or his attorney or legal
representative in such form as shall be satisfactory to the Transfer Agent, for fully registered bonds
in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount
equal to the unpaid principal amount of this bond and in the form of such fully registered multiple
bonds as is provided for in the resolution authorizing the issuance of this bond.
• This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E
of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act,
Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of
the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay
capital costs of providing water facilities for the District. The issuance of this bond and the
contracting of the indebtedness evidenced thereby were approved by a majority of the qualified
voters of the District voting at an election held on January 7, 1997.
The bonds not held or insured by the United States of America and maturing on and after
June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the
District on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a
redemption price equal to the principal amount of each bond to be redeemed together with accrued
interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2
of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or
part thereof between the redemption date and the maturity date of each bond to be redeemed,
•
provided that such premium shall not exceed two percent of such principal amount. If less than all
of the bonds of different maturities are called for redemption, the bonds to be redeemed shall be
called in the inverse order of their maturities. If less than all of the bonds of any maturity are called
for redemption, the bonds to be redeemed shall be selected by the District in such manner as it may
determine. If less than all of the principal amount of a bond is to be redeemed, the District shall
exchange a bond of the denomination representing the portion of the bond not redeemed to the
registered owner in exchange for the bond, a portion of which is to be redeemed. Whenever the
District shall elect to redeem bonds, notice of such redemption of bonds, stating the redemption
date, redemption price and identifying the bonds or portions thereof to be redeemed by reference to
their numbers and further stating that on such redemption date there shall become due and payable
upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium
and interest accrued to the redemption date, shall be given not less than 30 days nor more than 45
days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at
their addresses as such addresses appear on the records of the Transfer Agent, but any failure in
•
respect of such mailing will not affect the validity of the redemption. So long as this bond is held or
insured by the United States of America, the principal thereof may be prepaid in whole or in part in
inverse order of maturity without premium at any time.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to
or in the issuance of this bond, exist, have been performed and have happened, and that the amount
of this bond, together with all other indebtedness of the District, is within every debt and other
limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby
pledged to the punctual payment of the principal of and interest on this bond in accordance with its
terms.
This bond shall not be valid or become obligatory for any purpose until the certifications
hereon shall have been signed by authorized representatives of the Local Government Commission
of North Carolina and the Transfer Agent.
IN WITNESS WHEREOF, the District has caused this bond to bear the facsimile signatures
of the Chairperson of the governing body of the District and the Clerk of the District and a facsimile
of the corporate sea] of the District to be imprinted hereon, and this bond to be dated June 1, 2001.
(DISTRICT)
(SEAL)
(facsimile si ng ature)
Chairperson, governing body of
Harnett County Water and Sewer
District
(facsimile signature)
Clerk, Harnett County Water and
Sewer District
Transfer Agent's Certificate of Authentication
This bond is one of the bonds of the issue designated herein and issued under the within -
mentioned bond order.
FIRST -CITIZENS BANK & TRUST COMPANY
By:
Date of Authentication
Authorized Signatory
CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
The issue hereof has been approved under the provisions of The
Local Government Bond Act.
(facsimile signature)
Secretary of the Local Government Commission
ASSIGNMENT
For value received the undersigned registered owner thereof hereby sells, assigns, and
transfers unto
thereunder and hereby irrevocably constitutes and appoints
the within bond and all rights
attorney to
register the transfer of said bond on the books kept for registration thereof, with full power of
substitution in the premises.
Signature Guaranteed: Dated:
NOTICE: Signature guarantee must be made
NOTICE: The assignor's signature to this
by guarantor institution participating in the
assignment must correspond with the name
Securities Transfer Agents Medallion Program
as it appears upon the fact of the within
or in such other guarantee program in
bond in every particular, without alteration
accordance with Securities and Exchange
or enlargement or any change whatever.
Commission Rule 17 Ad-15.
•
•
•
333
•
•
(11) The Single Bond, the provisions for assignment thereof and for approval thereof by
the Secretary of the Local Government Commission to be endorsed thereon shall be in substantially
the following form:
(form of Single Bond)
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY
WATER BOND, SERIES 2001B
R-1 $254,000
RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter
called the "District"), a county water and sewer district in the State of North Carolina,
acknowledges itself indebted and for value received, hereby promises to pay to [UNITED STATES
OF AMERICA, ACTING BY AND THROUGH RURAL UTILITIES SERVICE, AN AGENCY
OF THE UNITED STATES DEPARTMENT OF AGRICULTURE], or its registered assigns, the
principal sum of $254,000 on the first day of June in years and installments, as follows:
Year
Principal
Amount
Year
Principal
Amount
Year
Principal
Amount
2004
$3,000
2018
$5,500
2032
$9,000
2005
3,000
2019
5,500
2033
9,000
2006
3,000
2020
6,000
2034
10,000
2007
3,000
2021
6,000
2035
11,000
2008
3,000
2022
6,000
2036
11,000
2009
3,500
2023
6,000
2037
12,000
2010
3,500
2024
6,500
2038
12,000
2011
3,500
2025
6,500
2039
12,000
2012
3,500
2026
7,000
2040
12,000
2013
4,000
2027
7,000
2041
12,000
2014
4,000
2029
7,000
2015
4,500
2029
7,000
2016
5,000
2030
8,000
2017
5,000
2031
8,500
in such coin or currency of the United States of America as at the time of payment shall be legal
tender for the payment of debts due the United States of America, and to pay interest on the balance
of said principal sum from time to time remaining unpaid, in like coin or currency, at the rate of
four and eight hundred seventy-five thousandths per centum (4.875%) per annum on June I, 2002,
and annually thereafter on June 1 of each year, until the principal amount hereof has been paid.
Payments of the installments of principal and interest then due and payable on this bond
shall be made without presentation or surrender hereof. Upon final payment of principal and
interest, this bond shall be surrendered to the District for cancellation.
This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E
of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act,
Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of
the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay
capital costs of providing water facilities for the District. The issuance of this bond and the
contracting of the indebtedness evidenced thereby were approved by a majority of the qualified
voters of the District voting at an election held on January 7, 1997.
This bond is exchangeable at the sole expense of the District at any time, upon ninety days'
notice, at the request of the registered owner hereof and upon surrender of this bond to the District,
334
for fully registered bonds, in the denomination of $500 each or any integral multiple thereof, in an
aggregate principal amount equal to the unpaid principal amount of this bond and in the form of
such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of
the bonds.
This bond may be assigned and upon such assignment the assignor shall promptly notify the
District by registered mail, and the assignee shall surrender the same to the District or its designated
transfer agent for transfer on the registration records, or in exchange for fully registered bonds in the •
denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal
to the unpaid principal amount of such single registered bond and bearing maturities corresponding
to the principal installments on such single registered bond then unpaid, and every such assignee
shall take this bond subject to such condition. The person in whose name this bond is registered
shall be deemed the owner thereof for all purposes.
So long as this bond is held or insured by the United States of America, the principal in-
stallments hereof may be prepaid in whole or in part in inverse order of maturity at any time.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to
or in the issuance of this bond, exist, have been performed and have happened, and that this bond is
within every limitation prescribed by said Constitution or statutes. The faith and credit of the
District are hereby pledged to the punctual payment of the principal of and interest on this bond in
accordance with its terms.
IN WITNESS WHEREOF, the District has caused this bond to be signed by the Chairperson
of the governing body of the District and the Clerk of the District and sealed with the corporate seal •
of the District and this bond to be dated
Chairperson, governing body of Riverside Water
and Sewer District of Harnett County
(DISTRICT)
(SEAL)
Clerk, Riverside Water and Sewer District
of Harnett County
CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
The issuance of the within bond has been approved under the
provisions of The Local Government Bond Act.
Secretary of the Local Government Commission
By:
•
Designated Assistant
33
ASSIGNMENT
For value received the undersigned registered owner thereof hereby sells, assigns, and
transfers unto the within bond and all rights
thereunder and hereby irrevocably constitutes and appoints
attorney to
register the transfer of said bond on the books kept for registration thereof, with full power of
substitution in the premises.
Signature Guaranteed: Dated -
NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this
by guarantor institution participating in the assignment must correspond with the name
Securities Transfer Agents Medallion Program as it appears upon the fact of the within
or in such other guarantee program in bond in every particular, without alteration
accordance with Securities and Exchange or enlargement or any change whatever.
Commission Rule 17 Ad-15.
(12) Actions taken or to be taken by officials of the Issuer to select paying agents, transfer
agents and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-
8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina,
are hereby authorized and approved.
(13) The Bonds shall be sold to the United States of America acting by and through Rural
Utilities Service, an agency of the United States Department of Agriculture, at private sale without
advertisement in the form of a single registered bond bearing interest at the rate of 4.75% per
annum, provided that the Local Government Commission shall determine that such price is in the
best interest of the Issuer.
(14) The Chairperson of the governing body of the Issuer and the Clerk of the Issuer are
ishereby authorized and directed to cause the Bonds to be prepared and, when they shall have been
duly sold by the Local Government Commission, to execute the Bonds and to turn the Bonds over
to the State Treasurer of North Carolina or to the Transfer Agent for delivery to the purchaser or
purchasers to whom the Bonds may be sold by said Commission.
(15) 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 Bonds for federal income tax purposes.
(16) The Issuer hereby represents that (i) the proposed $254,000 Water Bond, Series
200113, is not a private activity bond as defined in the Code and (ii) the Issuer, together with any
subordinate entities of the Issuer and any entities which issue obligations on behalf of the Issuer,
reasonably expects that it will not issue and designate in the aggregate more than $10,000,000 of
tax-exempt obligations (other than private activity bonds which are not qualified 501(c)(3) bonds)
during the current calendar year. In addition, the Issuer hereby designates the Bonds as "qualified
tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
• (17) The power to make any election on behalf of the Issuer with respect to the arbitrage
rebate provisions of the Code applicable to the Bonds is hereby delegated to the Chairperson of the
governing body of the Issuer and the Clerk of the Issuer.
The motion having been duly seconded, and the resolution having been considered, it was
adopted by the following vote:
AYES: 3
NAYS: 0