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05241989387 WEST CENTRAL WATER AND SEWER DISTRICT MEETING, MAY 24, 1989 RESOLUTION RE: SERIES 1989A The Harnett County Board of Commissioners sitting as the governing body of West Central Water and Sewer District of Harnett County met in special session on Wednesday, May 24, 1989, at the County Office Building, Lillington, North Carolina, with the following members present: Bill Shaw, Mack Reid Hudson, Mayo Smith, and Chairman Lloyd G. Stewart presiding. Commissioner Rudy Collins was absent. Others present were Dallas H. Pope, County Manager; Vanessa W. Young, Clerk to the Board; and Kay S. Blanchard, Recording Secretary. Chairman Stewart called the meeting to order at 7 p.m. John M Phelps, Public Utilities Attorney, discussed items to be considered by the Board. Commissioner Shaw 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 Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, desires to sell a $670,000 portion of the bonds at private sale without advertisement at a rate of interest not exceeding 6.50% per annum; and WHEREAS, the Board of Commissioners of the County of Harnett, sitting as the governing body of West Central Water and Sewer District of Harnett County, has been informed of Farmers Home Admininstration's undertaking to purchase a $670,000 portion of the bonds at the rate of 6.50% per annum; NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, North Carolina (the "Issuer "), as follows: (1) The Issuer shall issue its bonds of the aggregate principal amount of $670,000 pursuant to and in accordance with the water bond order adopted by the Board of Commissioners of Harnett County, sitting as the governing body of the Issuer, on December 15, 1986. The bonds shall be designated "Water Bonds, Series 19.89A." The period of usefulnes's 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) Said bonds shall be issuable in the denomination of $250 or any integral multiple thereof, shall be numbered so as to uniquely designate each bond and such numbering shall be in accordance with the system of the hereinafter designated bond registrar of the Issuer and shall be payable in annual install- ments on June 1 as follows: Principal Principal Year Amount Year Amount 1992 $ 6,250 1993 6,500 1994 6,750 1995 7,250 1996 7,500 1997 8,000 1998 8,500 1999 9,250 2000 10,000 2001 10,250 2002 11,000 2003 11,750 2004 12,500 2005 13,250 2006 14,250 2007 15,000 2008 16,000 2009 17,000 2010 18,250 2011 $19,500 2012 20,750 2013 22,000 2014 23,500 2015 25,000 2016 25,000 2017 25,000 2018 25,000 2019 25,000 2020 25,000 2021 25,000 2022 25,000 2023 25,000 2024 25,000 2025 25,000 2026 25,000 2027 25,000 2028 25,000 2029 25,000 (3) Said bonds shall be dated June 1, 1989 (unless awarded to the United States of America 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 or rates which shall be hereafter determined provided the net interest cost to the Issuer shall not exceed 6.50% per annum. Such interest shall be payable December 1, 1989 and semi - annually thereafter on June 1 and December 1 in each year; provided, however, that if any 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, 1990 and annually thereafter of the 1st day of June.of each year. (4). Said bonds shall be issued as fully registered bonds without coupons in the denomination of $250 each or any integral multiple thereof (the "Multiple Bonds "), or, at the op- tion of the purchaser, as a single fully registred bond without coupons in the denomination of $670,000 (the "Single Bond") payable in installments. If issued as Multiple Bonds, the bonds shall bear the facsimile signatures of the Chairman 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 bonds shall be signed by the Chair- man of the governing body of the Issuer and the Clerk of the Is- suer, the corporate seal of the. Issuer shall be impressed thereon and the Certificate of Approval of the Local Government Commis- sion shall be signed by a designated assistant of said Commis- sion. Interest on the bonds shall be paid by check by the Issuer or a paying agent to be designated by the Finance Officer of 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 Paying Agent. Principal of the bonds shall be paid by check by the Paying Agent upon presentation of the bonds for payment. (5) At the option of the purchaser of the bonds, the Issuer may issue, in lieu of the Multiple Bonds, a Single Bond without coupons bearing interest of the same rate or rates as the Multiple Bonds. The Single Bond shall be of the denomination of $670,000, shall be numbered R -Land shall be payable in install- ments on June 1 in years and amounts as set forth with respect to the Multiple Bonds. 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 389 presented to the transfer agent to be designated by the Issuer (the "Transfer Agent ") for endorsement and for dating the authen- tication blank thereon and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the Single Bond. (6) The Single Bond purchased by the United States of America shall be payable in installments without presentation at the National Finance Office of the Farmers Home Administration, St. Louis, Missouri. (7) So long as the Single Bond is held or insured by the United States of America, Farmers Home Administration, the principal thereon may be prepaid in whole or in part without pre- mium at any time in inverse order of maturity. (8) The Multiple Bonds maturing on and after June 1, 2000 shall be subject to redemption prior to their stated maturi- ties at the option of the Issuer on or after June 1, 1999, 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 redemmed 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 calendar year 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 single 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 portions 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 thereof shall cease to accrue, shall be given by publication at least once in a newspaper of general circula- tion in the West Central Water and Sewer District of Harnett County, North Carolina, and at least once in a daily newspaper of general circulation or a financial journal distributed in the Borough of Manhattan, City and State of New York not less than 30 days prior to the redemption date fixed in said notice. Such notice shall be given not less than 30 days nor more than 60 days prior to the redemption date in writing to the registered owners, 390: by pre -paid first-class mail, at their addresses as such addres- ses appear on the records of the Transfer Agent, as bond regis- trar, but any failure in respect of such mailing will not affect the validity of the redemption. (9) The Multiple Bonds and the provisions for the reg- istration thereof, for the approval of the Multiple Bonds by the Secretary of the Local Government Commission, and for authentica- tion of the Multiple Bonds by the Transfer Agent shall be in sub- stantially the following form: (Form of Multiple Bonds) No. R- UNITED STATES OF AMERICA STATE OF WEST CENTRAL WATER ANDSEWER TDISTRICT NOF HARNETT COUNTY WATER BOND, SERIES 1989A INTEREST RATE REGISTERED OWNER: PRINCIPAL SUM: MATURITY DATE OF ORIGINAL ISSUE June 1, 1989 CUSIP DOLLARS WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter referred to as "District "), a body corporate and politic of 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 speci- fied above, payable December 1, 1989 and semi - annually therafter 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 ap- pointed 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 next preceding each interest payment date. 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 trans- fer. Upon any such transfer a new registered bond without 391 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 and the Transfer Agent shall not be affected by any notice to the contrary. 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 Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, on December 15, 1986 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the indebtedness evidence thereby were approved by a majority of the qualified voters of the District voting at an election held on February 17, 1987. The bonds maturing on and after June 1, 2000 shall be subject to redemption prior to their stated maturities at the option of the District on or after June 1, 1999, 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 calendar year or part thereon 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 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 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 single 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 portions 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 by publication at least once in a newspaper of general circula- tion in the West Central Water and Sewer District of Harnett County', North Carolina, and at least once a daily newspaper of general circulation or a financial journal distributed in the Borough of Manhattan, City and State of New York not less than 30 days prior to the redemption date fixed in said notice. Such notice shall be given not less than 30 days nor more than 60 days prior to the redemption date in writing to the registered owners, by pre -paid first -class mail, at their addresses as such addres- ses appear on the records of the Transfer Agent, but any failure in respect of such mailing will not affect the validity of the redemption. 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 prece- dent to or in the issuance of this bond, exist, have been per- formed and have happened, and that the amount of this bond, together with all 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 Chairman of the governing body of the District and the Clerk of the District and a fac- simile of the corporate seal of the District to be imprinted hereon, and this bond to be dated June 1, 1989. (DISTRICT) (SEAL) (facsimile signature Chairman, governing body of West Central Water and Sewer District of Harnett County (facsimile signature) Clerk, West Central Water and Sewer District of Harnett County 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. Date of Authentication FIRST - CITIZENS BANK & TRUST COMPANY BY: Authorized Signatory 393 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issue hereof has been approved under the provisions of The Local Government Bond Act. (facsimile signature) JOHN D. FOUST Secretary of the Local Government Commission ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within bond and irrevocably appoints attorney -in -fact, to transfer the within bond on the books • kept for registration thereof, with full power of substitu- tion in the premises. Date: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, with- out any alteration whatsoever. Signature Guaranteed: (10) The Single Bond, the provisions for entry of pay- ments of principal and interest with respect thereto, for assign- ment thereof and for approval thereof by the Secretary of the Lo- cal 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 WEST CENTRAL SEWER AND WATER DISTRICT OF HARNETT COUNTY WATER BOND, SERIES 1989A R -1 $670,000 WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter called the "District "), a body corporate and politic of the State of North Carolina, acknowledges itself indebted and for value received, hereby promises to pay to the UNITED STATES OF AMERICA, FARMERS HOME ADMINISTRATION, or its registered assigns (herein called "Payee "), the principal sum of $670,000 on the first day of June in years and installments, as follows: Principal Principal year Amount Year Amount 1992 $ 6,250 2011 $19,500 1993 6,500 2012 20,750 1994 6,750 2013 22,000 1995 7,250 2014 23,500 1996 7,500 2015 25,000 1997 8,000 2016 25,000 1998 8,500 2017 25,000 1999 9,250 2018 25,000 2000 10,000 2019 25,000 2001 10,250 2020 25,000 2002 11,000 2021 25,000 2003 11,750 2022 25,000 2004 12,500 2023 25,000 2005 13,250 2024 25,000 2006 14,250 2025 25,000 2007 15,000 2026 25,000 2008 16,000 2027 25,000 2009 17,000 2028 25,000 2010 18,250 2029 25,000 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 six and fifty hundredths per centum (6.50 %) per annum on June 1, 1990, 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 payabie on this bond without presentation or surren- der hereof shall be made at the National Finance Office of the Farmers Home Administration, St. Louis, Missouri. Upon receipt of said payments of principal and interest, written notice of the receipt thereof shall be given promptly to the District and the District 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 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 of The Local Government Finance Act, Chapter 159'of said General Statutes, and a bond order adopted by the Board of Commissioners of Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, on December 15, 1986 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 February 17, 1987. 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 $250 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 for transfer on the registration records, or in exchange for fully registered bonds in the denomination of $250 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. So long as this bond is held or insured by the United States of America, Farmers Home Administration, the principal in- 395 stallments hereof may be prepaid in whole or in part at any time in inverse order of maturity. 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 prece- dent to or in the issuance of this bond, exist, have been per- formed 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 Chairman of the governing body of the Dis- trict and the Clerk of the District and sealed with the corporate seal of the District and this bond to be dated 1989. (DISTRICT) Chairman, (SEAL) governing body of West Central Water and Sewer District of Harnett County Clerk, West Central 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. JOHN D. FOUST Secretary of the Local Government Commission By: Designated Assistant 2 Due Date PAYMENT RECORD Name of Principal Interest Paying Agent, Principal Balance Payment Date Authorized Payment Due (6.50 %) Paid Off. & Title June 1, 1990 $ June 1, 1991 June 1, 1992 6,250 June 1, 1993 6,500 June 1, 1994 6,750 June 1, 1995 7,250 June 1, 1996 7,500 June 1, 1997 8,000 June 1, 1998 8,500 June 1, 1999 9,250 'June 1, 2000 10,000 June 1, 2001 10,250 June 1, 2002 11 000 June 1, 2003 11,750 June 1, 2004 12,500 June 1, 2005 13,250 June 1, 2006 14,250 June 1, 2007 15,000 June 1, 2008 16,000 June 1, 2009 17,000 June 1, 2010 18,250 June 1, 2011 , 19,500 June 1, 2012 20,750 June 1, 2013 22,000 June 1, 2014 23,500 June 1, 2015 25,000 June 1, 2016 25,000 June 1, 2017 25,000 June 1, 2018 25,000 June 1, 2019 25,000 June 1, 2020 25,000 June 1, 2021 25,000 June 1, 2022 25,000 June 1, 2023 25,000. June 1, 2024 25.000 June 1, 2025 25,000 June 1, 2026 25,000 June 1, 2027 25,000 June 1, 2028 25,000 June 1, 2029 25,000 SCHEDULE "A" Principal installments on which payments have been made prior to maturity . Name of Principal Principal Date Paying Agent, Date Amount Payment Balance Paid Authorized . Off. & Title (Form of Assignment) For value received the Payee named in the within Bond hereby sells, assigns and transfers said Bond unto (11) Actions taken or to be taken by officials of the Issuer to select paying and transfer agents, and a bond regis- trar, 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. (12) The bonds shall be sold to the Farmers Home Administration at private sale without advertisement in the form of a single registered bond bearing interest at the rate of 6.50% per annum, provided that the Local Government Commission shall determine that such price is in the best interest of the Issuer. (13) The Chairman 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. (14) The Issuer covenants, to the extent permitted by the Constitution and laws of the State of North Carolina, to com- ply with the provisions of the Internal Revenue Code of 1986 (the "Code ") to the extent required to preserve the exclusion from gross income of interest on the bonds for Federal income tax pur- poses. (15) The Issuer hereby represents that (i) the proposed $670,000 Water Bonds, Series 1989A, authorized by Section 1, hereof, are not private activity bonds as defined in the Code and (ii) the Issuer, the County of Harnett, other water and sewer districts and entities subordinate to the County of Harnett, to- gether with any subordinate entities of the Issuer, reasonably expect that they will not issue cumulatively more than $10,000,000 of tax - exempt obligations (other than private ac- tivity bonds which are not qualified 501(c)(3) bonds) during calendar year 1989 (including the above - mentioned bonds and the $130,000 Water Bond, Series 1989B, issued the date hereof). In addition, the Issuer hereby designates the above - mentioned bonds as "qualified tax - exempt obligations" for the purposes of Section 265(b)(3) of the Code. The motion having been duly seconded, and the resolu- tion having been considered, it was adopted. The vote on the adoption of the resolution was as follows: AYES: NAYS: 4 0 398 RESOLUTION RE: SERIES 1989B Series. 1989B EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY x t Commissioner Hudson 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 Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, desires to sell a $130,000 portion of the bonds at private sale without advertisement at a rate of interest not exceeding 7.375% per annum; and WHEREAS, the Board of Commissioners of the County of Harnett, sitting as the governing body of West Central Water and Sewer District of.Harnett county, had been informed of Farmers Home Administration's undertaking to purchase a $130,000 portion of the bonds at the rate of 7.375% per annum; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, North Carolina (the "Issuer "), as follows: (1) The Issuer shall issue its bonds of the aggregate principal amount of $130,000 pursuant to and in accordance with the water bond order adopted by the Board of Commissioners of Harnett County, sitting as the governing body of the Issuer, on December 15, 1986. The bonds shall be designated "Water Bonds, Series 1989B." 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) Said bonds shall be issuable in the denomination of $100 or any integral multiple thereof, shall be numbered so as to uniquely designate each bond and such numbering shall be in accordance with the system of the hereinafter designated bond registrar of the Issuer and shall be payable in annual install- ments on June 1 as follows: Principal Year Amount 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ' 2006 2007 2008 2009 2010 $ 1,300 1,300 1,400 1,500 . 1,600 1,700 1,800 2,000 2,000 2,000 2,000 2,000 2,000 2,500 3,000 3,000 3,000 3,000 3,500 Year Principal Amount 2011 $ 4,000 2012 4,000 2013 4,000 2014 5,000 2015 5,000 2016 5,000 2017 5,000 2018 5,000 2019 5,000 2020 5,000 2021 5,000 2022 5,000 2023 5,000 2024 5,000 2025 5,000 2026 5,000 2027 5,000 2028 5,000 2029 2,400 399 (3) Said bonds shall be dated June 1, 1989 (unless awarded to the United States of America 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 7or rates which shall be hereafter determined provided the net interest cost to the Issuer shall not exceed 7.375% per annum. Such interest shall be payable December 1, 1989 and semi - annually thereafter on June 1 and December 1 in each year; provided, however, that if any 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, 1990 and annually thereafter of the 1st day of June of each year. (4) Said bonds shall be issued as fully registered bonds without coupons in the denomination of $100 each or any integral multiple thereof (the "Multiple Bonds "), or, at the op- tion of the purchaser, as a single fully registered bond without coupons in the denomination of $130,000 (the "Single Bond ") payable in installments. If issued as Multiple Bonds, the bonds shall bear the facsimile signatures of the Chairman 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 bonds shall be signed by the Chair- man of the governing body of the Issuer and the Clerk of the Is- suer, the corporate seal of the Issuer shall be impressed thereon and the Certificate of Approval of the Local Government Commis- sion shall be signed by a designated assistant of said Commis- sion. Interest on the bonds shall be paid by check by the Issuer or a paying agent to be designated by the Finance Officer of 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 Paying Agent. Principal of the bonds shall be paid by check by the Paying Agent upon presentation of the bonds for payment. (5) At the option of the purchaser of the bonds, the Issuer may issue, in lieu of the Multiple Bonds, a Single Bond without coupons bearing interest of the same rate or rates as the Multiple Bonds. The Single Bond shall be of the denomination of $130,000, shall be numbered R -1 and shall be payable in install- ments on June 1 in years and amounts as set forth with respect to the Multiple Bonds. 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 400 (the "Transfer Agent ") for endorsement and for dating the authen- tication blank thereon and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the Single Bond. (6) The Single Bond purchased by the United States of America shall be payable in installments without presentation at the National Finance Office of the Farmers Home Administration, St. Louis, Missouri. (7) So long as the Single Bond is held or insured by the United States of America, Farmers Home Administration, the principal thereon may be prepaid in whole or in part without pre- mium at any time in inverse order of maturity. (8) The Multiple Bonds maturing on and after June 1, 2000 shall be subject to redemption prior to their stated maturi- ties at the option of the Issuer on or after June 1, 1999, 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 calendar year 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 single 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 portions 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 thereof shall cease to accrue, shall be given by publication at least once in a newspaper of general circula- tion in the West central Water and Sewer District of Harnett County, North Carolina, and at least once in a daily newspaper of general circulation or a financial journal distributed in the Borough of Manhattan, City and State of New York not less than 30 days prior to the redemption date fixed in said notice. Such notice shall be given not less than 30 days nor more than 60 days prior to the redemption date in writing to the registered owners, by pre -paid first -class mail, at their addresses as such ad- 401 A dresses 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 Multiple Bonds and the provisions for the reg- istration thereof, for the approval of the Multiple Bonds by the Secretary of the Local Government Commission, and for authentica- tion of the Multiple Bonds by the Transfer Agent shall be in sub- stantially the following form: No. R- (Form of Multiple Bonds) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY INTEREST RATE REGISTERED OWNER: PRINCIPAL SUM: WATER BOND, SERIES 1989B MATURITY DATE OF ORIGINAL ISSUE June 1, 1989 CUSIP DOLLARS WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter referred to as "District "), a body corporate and politic of 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 speci- fied above, payable December after on June 1 and December bond is payable by check by in Raleigh, North Carolina, 1, 1989 and semi - annually there - 1 of each year. Principal of this First- Citizens Bank & Trust Company, as paying agent, or by the duly ap- pointed 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 -Citi- zens Bank & Trust Company, in Raleigh, North Carolina, as trans- fer agent (the "Transfer Agent "), at the close of business on the fifteenth day of the calendar month next preceding each interest payment date. 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 trans- fer. 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 and the'Transfer Agent shall not be affected by any notice to the contrary. 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 Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, on December 15, 1986 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the. indebtedness evidence thereby were approved by a majority of the qualified voters of the District voting at an election held on February 17, 1987. The bonds maturing on and after June 1, 2000 shall be subject to redemption prior to their stated maturities at the option of the District on or after June 1, 1999, 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 calendar year or part thereon 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 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 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 single 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 portions 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 by publication at least once in a newspaper of general circula- tion in the West Central Water and Sewer District of Harnett County, North Carolina, and at least once a daily newspaper of general circulation or a financial journal distributed in the Borough of Manhattan, City and State of New York not less than 30 days prior to the redemption date fixed in said notice. Such 403 notice shall be given not less than 30 days nor more than 60 days prior to the redemption date in writing to the registered owners, by pre -paid first -class mail, at their addresses as such addres- ses appear on the records of the Transfer Agent, but any failure in respect of such mailing will not affect the validity of the redemption. 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 prece- dent to or in the issuance of this bond, exist, have been per- formed and have happened, and that the amount of this bond, together with all 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 Chairman of the governing body of the District and the Clerk of the District and a fac- simile of the corporate seal of the District to be imprinted hereon, and this bond to be dated June 1, 1989. (DISTRICT) (SEAL) (facsimile signature Chairman, governing body of West Central Water and Sewer District of Harnett County (facsimile signature) Clerk, West Central Water and Sewer District of Harnett County 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: Authorized Signatory Date of Authentication CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issue hereof has been approved under the provisions of The Local Government Bond Act. (facsimile signature) JOHN D. FOUST Secretary of the Local Government Commission 404 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within bond and irrevocably appoints attorney -in -fact, to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. Date: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, with- out any alteration whatsoever. Signature Guaranteed: (10) The Single Bond, the provisions for entry of pay- ments of principal and interest with respect thereto, for assign- ment thereof and for approval thereof by the Secretary of the Lo- cal 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 WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY WATER BOND, SERIES 1989B R -1 ' $130,000 WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter called the "District "), a body corporate and politic of the State of North Carolina, acknowledges itself indebted and for value received, hereby promises to pay to the UNITED STATES OF AMERICA, FARMERS HOME ADMINISTRATION, or its registered assigns (herein called "Payee "), the principal sum of $130,000 on the first day of June in years and installments, as follows: Principal Principal Year Amount Year Amount 1992 $ 1,300 1993 1,30Q 1994 1,400 1995 1,500 1996 1,600 1997 1,700 1998 1,800 1999 2,000 2000 2,000 2001 - 2,000 2002 2,000 2003 2,000 2004 2,000 2005 2,500 2006 3,000 2007 3,000 2008 3,000 2009 3,000 2010 3,500 2011 $ 4,000 2012 4,000 2013 4,000 2014 5,000 2015 5,000 2016 5,000 2017 5,000 2018 5,000 2019 5,000 2020 5,000 2021 5,000 2022 5,000 2023 5,000 2024 5,000 2025 5,000 2026 5,000 2027 5,000 2028 5,000 2029 2,400 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 seven and three 405 hundred seventy -five thousandths per centum (7.375 %) per annum on June 1, 1990, 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 without presentation or surren- der hereof shall be made at the National Finance Office of the Farmers Home Administration, St. Louis, Missouri. Upon receipt of said payments of principal and interest, written notice of the receipt thereof shall be given promptly to the District and the District 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 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 of The Local Government Finance Act, Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of Harnett County, sitting as the governing body of West Central Water and Sewer District of Harnett County, on December 15, 1986 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 February 17, 1987. 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 $100 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. assignor This bond may be assigned and upon such assignment the shall promptly notify the District by registered mail, and the assignee shall surrender the same to the District for transfer on the registration records, or in exchange for fully registered bonds in the denomination of $100 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. So long as this bond is held or insured by the United States of America, Farmers Home Administration, the principal in- stallments hereof may be prepaid in whole or in part at any time in inverse order of maturity. 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 prece- dent to or in the issuance of this bond, exist, have been per- formed and have happened, and that this bond is within every 2 40,6 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 Chairman of the governing body of the Dis- trict and the Clerk of the District and sealed with the corporate seal of the District and this bond to be dated 1989. (DISTRICT) (SEAL) Chairman, governing body of West Central Water and Sewer District of Harnett County Clerk, West Central 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. JOHN D. FOUST Secretary of the Local Government Commission By: Designated Assistant PAYMENT RECORD Name of Principal Interest Paying Agent, Principal Balance Payment Date Authorized Due Date Payment Due (7.375 %) Paid Off. & Title June 1, 1990 $ June 1, 1991 June 1, 1992 1,300 June 1, 1993 1,300 June 1, 1994 1,400 June 1, 1995 1,500 June 1, 1996 1,600 June 1, 1997 1,700 June 1, 1998 1,800 June 1, 1999 2,000 June 1, 2000 2,000 June 1, 2001 2 000. June 1, 2002 2,000 June 1, 2003 2,000 June 1, 2004 2,000 June 1, 2005 . 2 500 June 1, 2006 3,000 June 1, 2007 3,000 June 1, 2008 3,000 June 1, 2009 3,000 June 1, 2010 3,500 June 1, 2011 4 000 June 1, 2012 4 000 June 1, 2013 4,000 June 1, 2014 5,000 June 1, 2015 5,000 June 1, 2016 5,000 June 1, 2017 5,000 June 1, 2018 5,000 June 1, 2019 5,000 June 1, 2020 5,000 June 1, 2021 5,000 June 1, 2022 5,000 June 1, 2023 5 000 June 1, 2024 5,000 June 1, 2025 5,000 June 1, 2026 5 000 June 1, 2027 5,000 June 1, 2028 5,000 June 1, 2029 2,400 407 SCHEDULE "A" Principal installments on which payments have been made prior to maturity • Name of Principal • Principal : • • Date Paying Agent, Date Amount Payment Balance Paid Authorized Off. & Title (Form of Assignment) For value received the Payee named in the within Bond hereby sells, assigns and transfers said Bond unto DATE (11) Actions taken or to be taken by officials of the Issuer to select paying and transfer agents, and a bond regis- trar, 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. (12) The bonds shall be sold to the Farmers Home Administration at private sale without advertisement in the form of a single registered bond bearing interest at the rate of 7.375% per annum, provided that the Local Government Commission shall determine that such price is in the best interest of the Issuer. (13) The Chairman 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. (14) The Issuer covenants, to the extent permitted by the constitution and laws of the State of North Carolina, to com- ply with the provisions of the Internal Revenue Code of 1986 (the "Code ") to the extent required to preserve the exclusion from gross income of interest on the bonds for Federal income tax pur- poses. (15) The Issuer hereby represents that (i) the proposed $130,000 Water Bonds, Series 1989B, authorized by Section 1, hereof, are not private activity bonds as defined in the Code and (ii) the Issuer, the County of Harnett, other water and sewer districts and entities subordinate to the County of Harnett, together with any subordinate entities of the Issuer, reasonably expect that they will not issue cumulatively more than $10,000,000 of tax - exempt obligations (other than private ac- 408 tivity bonds which are not qualified 501(o)(3) bonds) during calendar year 1989 (including the above - mentioned bonds and the $670,000 Water Bond, Series 1989A, issued the date hereof). In addition, the Issuer hereby designates the above - mentioned bonds as "qualified tax - exempt obligations" for the purposes of Section 265(b)(3) of the Code. The motion having been duly seconded, and the resolu- tion having been considered, it was adopted. The vote on the adoption of the resolution was as follows: AYES: 4 NAYS: ADJOURNMENT There being no further business, the West Central Water dnd Sewer District Meeting, May 24, 1989', duly adjourned at 7:20 p.m. Stewart, Chairman /1. de tkoad Kay S. /)lanchard, Recording Secretary anew-. 4,J Vanessa W. Young, Cler to t 4 Board