04251989341
South Central Water & Sewer District Special Reconvened Session, April 25, 1989
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The Harnett County Board of Commissioners, sitting as the governing body of the
South Central Water & Sewer District of Harnett County, met in a special reconvened
session on April 25, 1989, at 9:30 a.m., in the County Office Building, Lililngton,
North Marolina, with the following members present: Bill Shaw, Mack Reid Hudson,
Mayo Smith, and Chairman Lloyd G. Stewart presiding. Others present were Dallas
H. Pope, County Manager; Vanessa W. Young, Clerk to the Board; and Shirley C. Wicker
Recording Secretary.
After the meeting was reconvened, the Chairman announced that the Board had determi
at its session on April 17, 1989, that such session would be adjourned until
April 25, 1989, at 9 :30 a.m., at which time the meeting would be reconvened at
the Harnett County Office Building in Lillington, North Carolina.
Commissioner Shaw presented the following
resolution and moved that it be adopted:
WHEREAS, the bond order hereinafter described has taken
effect and it is desirable to make provision for the issuance
of refunding bonds authorized 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 sell the bonds
at private sale without advertisement to Southern Bank and
Trust Company (the "Bank "); and
WHEREAS, there has been submitted to the Board of
Commissioners of the County of Harnett, sitting as the
governing body of South Central Water and Sewer District of
Harnett County, a commitment from the Bank to purchase the
Bonds at a purchase price equal to 100% of the principal amount
thereof and at a variable rate of interest per annum equal to
the prime rate of the Bank plus 0.50 %, subject to a maximum
rate of 10.50% per annum: 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, (the "Issuer "), as follows:
(1) The Issuer shall issue its refunding bond in the
aggregate principal amount of $1,576,700 (the "Bond ") pursuant
to and in accordance with the bond order adopted by the Board
of Commissioners of the County of Harnett, sitting as the
governing body of the Issuer on March 14, 1989. The Bond
shall be designated "Water Refunding Bonds."
(2) The Bond shall be payable in annual installments
on June 1 in years and principal amounts as follows: of
Year of Principal Year of Principal
Maturity Amount Maturity Amount
1990 $15,400 2000 $ 71,100
1991 28,900 2001 78,500
1992 32,000 2002 86,800
1993 35,300 2003 95,900
1994 39,000 2004 105,900
1995 43,100 2005 117,100
1996 47,700 2006 129,400
1997 52,700 2007 142,900
1998 58,200 2008 158,000
1999 64,300 2009 174,500
ne
d
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(3) The Bond shall be dated the date of delivery
thereof, and shall bear interest from its date until it shall
mature at a variable rate per annum, equal to the Prime Rate of
the Bank (as announced by the Bank from time to time) plus
0.50 %, subject to a maximum rate of 10.50 %. Such interest
shall be calculated on a 365/366 days - per -yea -r basis and shall
be payable semi- annually on each June 1 and December 1,
commencing December 1, 1989.
(4) The Bond shall be issued as a single typewritten
bond registered in the name of the Bank and payable in
installments. The Bond shall be signed by the Chairman of the
governing body of the Issuer and the Clerk of the Issuer, the
corporate seal of the Issuer shall be impressed thereon and a
certificate of approval of the Local Government Commission
signed by the Secretary thereof or his designated assistant
shall be endorsed thereon. Interest on the Bond and each
installment of principal of the Bond shall be paid to the Bank
by check by the Issuer on each interest and principal payment
date at the Bank's address as it appears on the bond registry
books kept by the Issuer. Installments of principal of the
Bond, except the final installment thereof, shall be paid
without presentation of the Bond for payment.
(5) Installments of principal of the Bond may be
prepaid without premium in whole or in part in inverse order of
the maturities thereof on any date.
(6) The single Bond and the provisions for entry of
payments of principal and interest with respect thereto and for
approval thereof by the Secretary of the Local Government
Commission or his designated assistant to be endorsed thereon
shall be in substantially the form set forth in Exhibit A
hereto.
(7) The Bond shall be sold at a price of 100% of the
principal amount thereof to the Bank at private sale without
advertisement in the form of a single registered bond bearing
interest at the variable rate specified above, provided that
the Local Government Commission shall determine that such price
is in the best interest of the Issuer.
(8) The Chairman of the governing body of the Issuer
is hereby authorized to accept, execute and deliver on behalf
of the Issuer, or delegate such authority to an officer of the
North Carolina Association of County Commissioners or the North
343
Carolina League of Municipalities, a bond purchase agreement
between the Local Government Commission and the Bank providing
for the sale of the Bond in accordance with the terms herein
authorized.
(9) The Chairman of the governing body of the Issuer,
the Clerk of the Issuer, the Finance Officer of the Issuer and
the Issuer's attorney are hereby authorized to take any and all
such further action and to execute and deliver such other
documents as may be necessary or advisable to carry out the
intent of this resolution and to effect the issuance and sale
of the Bond.
(10) The interest on the Bond is intended and hereby
determined to be includable in gross income for Federal income
tax purposes. The Issuer covenants that it will not file an
information return on Form 8038 -G or take any other action
inconsistent with the inclusion in gross income of interest on
the Bond for Federal income tax purposes.
The motion having been duly seconded by commissioner Smith
and the resolution having been considered, it was adopted. The
vote on the adoption of the resolution was as follows:
AYES: 4
NAYS:
0
EXHIBIT A
(Form of Bond)
Interest on this Bond is includable in
gross income for Federal income tax purposes.
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
SOUTH CENTRAL WATER AND SEWER
DISTRICT OF HARNETT COUNTY
WATER REFUNDING BOND
R -1 $1,576,700
The SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT
COUNTY (the °Issuer "), a county water and sewer district of the
State of North Carolina, acknowledges itself indebted and for
value received, hereby promises to pay, to Southern Bank and
Trust Company or its registered assigns (herein called the
"Registered Owner"), the principal sum of $1,576,700 on the
first day of June in years and installments, as follows:
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Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Principal
Amount
$15,400
28,900
32,000
35,300
39,000
43,100
47,700
52,700
58,200
64,300
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Principal
Amount
$ 71,100
78,500
86,800
95,900
105,900
117,100
129,400
142,900
158,000
174,500
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 a variable rate per annum
equal to the Prime Rate of Southern Bank and Trust Company (as
announced by the Bank from time to time) plus 0.50 %, subject
to a maximum rate of 10.50 %. Such interest shall be calculated
on a 365/366 days - per -year basis and shall be payable on
December 1, 1989, and semi - annually thereafter on June 1 and
December 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 without presentation or
surrender hereof shall be made by check to the Registered Owner
at its address as it appears on the bond registry kept by the
Issuer as Bond Registrar. Upon receipt of said payments of
principal and interest, written notice of the receipt thereof
shall be given promptly to the Issuer and the Issuer shall be
fully discharged of the obligation on this Bond to the extent
of the payment so made. Upon final payment of principal and
interest this Bond shall be surrendered to the Issuer for
cancellation.
This Bond is issued pursuant to The Local Government
Finance Act, Chapter 159 of the General Statutes of North
Carolina, and a bond order adopted by the Board of
Commissioners of the County of Harnett, sitting as the
governing body of the Issuer on March 14, 1989 to provide funds
to refund the Issuer's outstanding Water Bonds, dated June 13,
1988.
This Bond may be assigned and upon such assignment the
assignor shall promptly notify the Issuer by registered mail,
and the assignee shall surrender the same to the Issuer for
transfer on the bond registry kept by the Issuer, and every
345
such assignee shall take this Bond subject to such condition.
Principal installments hereof may be prepaid without
premium in whole or in part in inverse order of the maturities
thereof on any date.
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 Issuer 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 Issuer has caused this Bond to
be signed by the Chairman of the governing body of the Issuer
and the Clerk of the Issuer and sealed with the corporate seal
of the Issuer and this Bond to be dated May _, 1989.
(DISTRICT)
(SEAL)
Chairman, governing body of South
Central Water and Sewer District of
Harnett County, North Carolina
Clerk, South Central Water and
Sewer District of Harnett County,
North Carolina
CERTIFICATE OF LOCAL GOVERNMENT COMMISSION
The issuance of the within Bond has been approved
under the provisions of The Local Government Bond
Act.
JOHN D. FOUST
Secretary of the Local Government Commission
By:
Designated Assistant
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Due Date
PAYMENT RECORD
Principal
Principal Balance
Payment Due
June 1, 1990 $ 15,400
June 1, 1991 28,900
June 1, 1992 32,000
June 1, 1993 35,300
June 1, 1994 39,000
June 1, 1995 43,100
June 1, 1996 47,700
June 1, 1997 52,700
June 1, 1998 58,200
June 1, 1999 64,300
June 1, 2000 71,100
June 1, 2001 78,500
June 1, 2002 86,800
June 1, 2003 95,900.
June 1, 2004 105,900
June 1, 2005 117,100
June 1, 2006 129,400
June 1, 2007 142,900
June 1, 2008 158,000
June 1, 2009 174,500
ADJOURNMENT
Date Paid
Name of
Bank
Officer
There being no further business, the Harnett County Board of Commissioners, sitting as
the governing body of the South Central Water & Sewer District of Harnett County,
duly adjourned at 9:54 a.m., April 25, 1989.
Stewart, Chairman
Ca, : W� 'ga" )
Shirley C. icker, Recording Secretary.
Vanessa W. Young, Cler, to th Board