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HomeMy WebLinkAbout02061995 1 !!'.~~ HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, FEBRUARY 6, 1995 The Harnett County Board of Commissioners met in regular session on Monday, February 6, 1995, in the Commissioners Meeting-Room, County Office Building, Lil1ington, North Carolina. ~OFIU.~ ~ ~\ Members present: Beatrice Bailey Hill, Vice Chairman "P Dan B. Andrews Joseph T. Bowden NOV :3 Walt Titchener . Chairman Sorrell was absent. Staff present: Neil Emory, County Manager Wm. A. (Tony) Wilder, Assistant Coun~y Dwight W. Snow, County Attorney Vanessa W. Young, Finance Officer Kay S. Blanchard, Recording Secretary Vice Chairman Hill called the meeting to order and Commissioner Titchener offered the invocation. Commissioner Titchener moved to approve the published agenda with the following changes: delete the item concerning proposed reclassifications of positions in Public Utilities and Health Department, and to add an item to the Consent Agenda to amend the Rules of Procedure for the Board of Commissioners. Commissioner Bowden seconded the motion and it passed with a unanimous vote. Upon motion by Commissioner Bowden and seconded by Commissioner CONSENT AGENDA Andrews, the Board unanimously approved the following items on the Consent Agenda: 1. Minutes: Regular Meeting, January 17, 1995 2. Budget Amendments: Manaqement Information Services Code 10-4450-0030 Salaries & Wages, Part-time $2,000. increase I. 10-4450-0450 Contracted Services 2,000. decrease Animal Control Shelter Code 73-9023-0040 Professional Services 5,000. increase Revenue: 73-3970-0020 Interfund Trans. from Gen. Fd. 5,000. increase Social Services Code 10-7710-1511 Donations - Fuel Fund 75. increase 10-7710-1540 Special Children's Account 1,080. increase . Revenue: 10-3830-0334 Donations-Social Services 1,155. increase Sheriff's Department Code 10-5100-0460 Medical Supplies & Drugs 2,000. increase 10-5100-0560 Crime Prevention 125. increase 10-5100-0740 Capital Outlay-Equipment 26,124. increase 10-5100-0540 Insurance and Bonds 100. increase Revenue: 10-3300-0170 Controlled Substance Tax 28,224. increase 10-3830-0333 Donations Crime Prevention 125. increase School Construction Code 75-9027-0200 Legal & Administration 750,000. increase 75-9027-0300 Engineering 1,500,000. increase 75-9021-0010 Construction 2,250,000. decrease Public Utilities (West Central Water & Sewer Districtl Code 35-9004-0080 Workmen's Compensation 1,900. increase 35-9004-1200 Capital Reserve 1)300. decrease Revenue: 35-3351-0010 Line Extensions-West Central 600. increase . Public Utilities (Southwest Water & Sewer District) Code 37-9006-0080 Workmen's Compensation 2,900. increase 37-9006-0160 Maintenance & Repair 7,000. increase 37-9006-0730 Capital Outlay - Other 3,000. increase 37-9006-0740 Capital Outlay - Equipment 3,850. increase Revenue: 37-3351-0010 Line Extension 2,900. increase 37-3740-0070 Sewer Taps 10,000. increase 37-3350-0090 Miscellaneous Revenue 3,850. increase Public Utilities (South Central Water & Sewer District) Code 34-9003-0080 Workmen's Compensation 4,100. increase Revenue: 34-3990-000 Fund Balance Appropriated 4,100. increase Public Utilities (Northwest Water & Sewer District) Code 36-9005-0080 Workmen's Compensation 1, 664. increase 36-9005-0730 Capital Outlay - Other 2,500. increase Revenue: 36-3351-0010 Line Extensions 1,900. increase 36-3350-0050 Miscellaneous Revenue 2,264. increase ---~--~ _'._'.__""0'. 2 East Central Ca~ital Proiect 1,891,682. increase Code 69-9012-0010 BC & D Associates 69-9012-0020 McClam & Associates 1,193,426. increase 69-9012-0030 T.A. Loving 1,342,496. increase 69-9012-0040 Brown Utility 203,900. increase 69-9012-0050 Phoenix Fabricators 361,499. increase 69-9012-0060 Radford Electric 64,800. increase 69-9012-0100 Land & Right of Way 5,500. increase 69-9012-0200 Legal & Administrative 35,000. increase 69-9012-0300 Engineering 77,000. increase 69-9012-0700 Interest During Const. 236,900. increase 69-9012-0740 Capital Outlay Equipment 61,200. increase 69-9012-0800 Contingency 129,397. increase Revenue: 69-3700-2000 FHA Grant-EC 2,000,000. increase . 69-3700-1000 FHA Loan-EC 3,780,300. increase 69-3830-0000 Town of Coats 67,000. increase 69-3700-0010 Advance from Gen. Fund-EC 244,500. decrease Public Utilities (Bunnlevel-Riverside) Code 38-9007-0160 Maintenance-Repair Equip. 4,000. increase 38-9007-0730 Capital Outlay-Other Improv. 3,000. increase Revenue: 38-3351-0010 Line Extensions 7,000. increase Library Code 10-8100-0250 Books & Publications 2,700. increase Revenue: 10-3830-0335 Donations-Library 2,700. increase Interfund Transfers Code 10-8701-1600 Interfund Trans.-Ani. Control 5,000. increase Revenue: 10-8800-1600 Contingency 5,000. decrease Health Department Code 10-7600-0110 Telephone & Postage 500. increase 10-7600-0120 Printing & Binding 1,000. increase 10-7600-0160 Maintenance & Repair Equip. 200. increase 10-7600-0250 Books & Publications 300. increase 10-7600-0330 Materials & Supplies 6,056. increase 10-7600-0460 Medical Supplies & Drugs 2,000. increase 10-7600-0740 Capital Outlay-Equipment 3,892 . increase Revenue: 10-3480-0190 WIC 13,948. increase Governing Body Code 10-4100-1511 Rape Crisis-Grant Pass Thru 30,000. increase . Revenue: 10-3480-0790 Rape Crisis Grant 30,000. increase Transportation Code 10-5551-6930 Capital Assistance - TDP 28,877. increase Revenue: 10-3990-0000 Fund Balance Appropriated 28,877. increase 3. Resolution requesting addition of Woodland Drive to State Road System (Attachment 1) 4. Tax Refunds (Attachment 2) BUDGET CAL. 5. Budget calendar for preparation of FY 95-96 Budget (Attachment 3) AMEND. TO 6. Amendment to Rules of Procedure for the Board of Commissioners: RULES OF PROCE. Rule 3. Closed Sessions (d) The County Manager, Assistant County Manager, County Attorney, and the Finance Officer shall attend the closed session, unless expressly excluded in the motion. Other persons shall not attend the closed session unless expressly included in the motion or otherwise called into the session. PUB. HEARING Vice Chairman Hill called to order a public hearing on a Community CDBG/SHAWTOWN Development Block Grant application for proposed community revitalization project for Shawtown Community. Steve Player, The Wooten Company, made a presentation concerning the proposed project. Vice Chairman Hill opened the meeting for public comments~ none were . offered and Vice Chairman Hill closed the public hearing. Commissioner Bowden made a motion that the application for the grant be submitted. Commissioner Andrews seconded the motion and it passed with a unanimous vote. ENVIROTIRE Tom Meece, Director, Industrial Development, presented for the Board's consideration a resolution regarding Building Renovation Fund application for Envirotire. Commissioner Andrews moved for adoption of the resolution. Commissioner Titchener seconded the motion and it passed 3 to 1 with Commissioner Bowden casting the dissenting vote. (Attachment 4) CONTRACT FOR Neil Emory, County Manager, presented for the Board's consideration a SCRAP TIRES p:oposed contract w~th Central Carolina Tire Disposal for scrap tire DISPOSAL d~sposal and recycl~ng. The proposed contract is for a period of one year: ~ommissioner Bowden moved for approval of the contract. Comm7ss~oner Titchener seconded the motion and it passed with a unan~mous vote. -'...........~.~... ~ \...)' ILLEGAL DUMPSITENeil Emory, County Manager, presented a request for waiver of tipping fees at the Landfill for clean-up of illegal dumpsite operated by Earl Holland near Erwin. Commissioner Titchener moved to deny the request. Commissioner Bowden seconded the motion and it passed with a unanimous vote. FEES IN RESCUE Neil Emory, County Manager, briefed the Board that currently the DISTRICTS County charges residents of rescue districts when the County serves as a back-up to rescue squads. When a rescue squad serves as the back-up service for the County, there is no charge. Commissioner Andrews made a motion to eliminate charges for emergency calls within rescue . districts when the County provides EMS service in those areas due to the rescue squad involved being tied up by another call. Charges will be assessed when a rescue squad can not respond due to a lack of manpower. Commissioner Bowden seconded the motion and it passed with a unanimous vote. LEE-HARNETT Neil Emory, County Manager, submitted for the Lee-Harnett Criminal CRIMINAL Justice Board for approval its Comprehensive Community Based Corrections Plan which incorporates pretrial and post-trial JUSTICE programming. The Plan also includes a discretionary funding request. Commissioner Titchener moved to approve the Plan as presented and to approve the discretionary funding request. Commissioner Bowden seconded the motion and it passed with a unanimous vote. PUBLIC UTILI- Neil Emory, County Manager, presented for the Board's consideration a TIES/WATER resolution and related documents regarding water supply loan/grant SUPPLY LOAN application for Public Utilities. Commissioner Andrews moved for adoption of the resolution and to authorize execution of related documents. Commissioner Titchener seconded the motion and it passed with a unanimous vote. (Attachment 5) In the County Manager's Report, Mr. Emory said that county officials OVERHILLS had met with military personnel concerning Overhills property and will meet with Senator Helms in Washington to discuss continuation of pursuing impact monies for capital improvements to schools and impact monies for operation. Reports were filed with the Board from Veteran's Affairs, Department of Social Services, Emergency Medical Services, and Tax Department. . The Tax Attorney's Report was filed with the Board (Attachment 6). Commissioner Bowden made a motion for the Board to go into closed session pursuant to G.S. section 143-318.11(a)(5) to discuss CLOSED SESSION instructions to staff regarding negotiations for acquisition of real property. Commissioner Andrews seconded the motion and it passed with a unanimous vote. Commissioner Titchener made a motion for the Board to come out of closed session. Commissioner Bowden seconded the motion and it passed with a unanimous vote. ADJOURNMENT There being no further business, the Harnett County Board of Commissioners' regular meeting, February 6, 1995, duly adjourned at 10:45 a.m. ~rice B. Hill, ice C~ain"an 1L '-{;).'-Ur~ Vanessa W. Young, Cler~i to -e Board . KaY~ ~ian-!~rf'~/it!;'{ecretary - _.._._._~ -- ----....._---.~--_.~.._.-.-._-~---.--~._--_....- ------_.- - -_.~--- ----... ------.. ..--- -_._-_.~-_._- - --_...-- - 4 Attachment 1. HARNETT COUNTY NORTH CAROLINA RESOLUTION BE IT RESOLVED that the Harnett County Board of . Commissioners do hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System for maintenance, the below listed street: Woodland Ridge Subdivision Woodland Drive Adopted this 6th day of February, 1995. HARNETT COUNTY BOARD OF COMMISSIONERS ~~~#J~~ ,seatrice Ba~lelrHill, Vice Chairman TEST: ~a'tQ!-~k . Attachment 2. . ~- r db" 'n'" Harnett Page No. 1 . Approve d' i-commissioners County Boar 0__ 01/04/95 :2-{p-9~ .:.J DECEMBER REFUNDS Date- 4h JANUARY 16,1995 PARCEL NUMBER NAME REASON FOR REFUND REFUND AMT YEAR ------------------------ ------------------------- -------------------------------- ----...----- ... --- 93-590807 PATRICK ALOYSIUS ORGAN MILITARY - NON-RESIDENT. 60.42 1993 168 C TREETOP DRIVE 16750 X .0070 = 147.25 CO WI FAYETTEVILLE NC 28311 16750 X .0015 = 10.13 AC FIRE 3.04 INT 001300509000 JAMES YOW GROCERY OVERLISTED ON BUSINESS PERSONAL. 31. 62 1993 C/O HARNETT CO TAX DEPT 53904 X .0070 = 527.33 CO WI L1LLINGTON NC 27546 53904 X .0011 = 4.29 FB FIRE 001300509000 JAMES YOW GROCERY OVERLISTED ON BUSINESS PERSONAL. 36.03 1992 . C/O HARNETT CO TAX DEPT 14449 X .0070 = $31.14 CO WI LILLlNGTON NC 17546 14449 X .0011 = 4.89 FB FIRE 001300509000 JAMES YOW GROCERY OVERLISTED BUSINESS PERSONAL. 35.16 1991 C/O HARNETT CO TAX DEPT 14186 X .0073 = 530.56 CO WIDE LILLI NGTON NC 27546 14186 X .0011 = 4.60 FB FIRE 94-544399 CHRISTOPHER JAMES RIDER MILITARY EXEMPT, RESIDENT OF 97.44 1994 ROUTE 3 BOX 176L CALI FORNIA. CAMERON NC 28326 512,030 X .0070 = $84.21 CO WI 512,030 X .0008 = 9.62 BH FI 512,030 X .0003 = 3.61 BH RES -. -------------- ~5 94-532876 GE CAPITAL AUTO LEASE, INC LEASEE TURNED IN TAGS AFTER 7 30.72 1994 TAX OPERATIONS MONTHS IN USE. POBOX 310 $3909 X .0070 = $27.36 CO WI BARRINGTON lL 60011 13909 X .0003 = 1.17 AVE FIRE ATTN: LYNDA SIMMONS $3909 X .00035= 1.37 AVE RESC $3909 X .0002 = .78 AVE SCH 0702403000 FIRST CITIZENS BANK OVER LISTED BUSINESS PROPERTY. 19.33 1993 C/O HARNETT CO TAX DEPT. $2762 X .0070 = $19.33 CO WI POBOX 250 LlLLlNGTON NC 27546 . 0702403000 FIRST CITIZENS BANK OVER LISTED BUSINESS PERSONAL. 26.32 1992 C/O HARNETT CO TAX DEPT $3760 X .0070 = $26.32 CO WI POBOX 250 LlLLlNGTON NC 27546 0702403000 FIRST CITIZENS BANK OVER LISTED BUSINESS PERSONAL. 34.51 1991 C/O HARNETT COUNTY TAX DEPT 14727 X .0073 = $34.51 CO WI POBOX 250 LI LLI NGTON NC 27546 0702403000 FIRST CITIZENS BANK OVER LISTED BUSINESS PERSONAL. 36.13 1990 C/O HARNETT CO TAX DEPT 14949 X .0073 = $36.13 CO WIDE POBOX 250 LI LLI NGTON NC 27546 0702403000 FIRST CITIZENS BANK OVER LISTED BUSINESS PERSONAL. 46.81 1994 C/O HARNETT CO TAX DEPT 16412 X .0073 = 146.81 CO WIDE POBOX 250 LILLINGTON NC 27546 0200481000 FIRST CITIZENS BANK #256 OVER LISTED BUSINESS PERSONAL. 21.32 1993 C/O HARNETT CO TAX DEPT $2824 X .0070 = $19.77 CO WIDE POBOX 250 $2824 X .00035= .99 AVE RESC . LI LLI NGTON NC 27546 $2824 X .0002 = .56 AVE SCH 0200481000 FIRST CITIZENS BANK #256 OVER LISTED BUSINESS PERSONAL. 23.23 1992 C/O HARNETT CO TAX DEPT $3075 X .0070 = $21.53 CO WIDE POBOX 250 $3075 X .00035= 1.08 AVE RESC LlLLlNGTON NC 27546 $3075 X .0002 = .62 AVE SCH 0701467000 TONY'S PAINT & BOOY SHOP OVER LISTED BUSINESS PERSONAL. 13.13 1993 C/O HARNETT CO TAX DEPT $1876 X .0070 = $13.13 CO WIDE POBOX 250 LI LLI NGTON NC 27546 0701467000 TONY'S PAINT & BOOY SHOP OVER LISTED BUSINESS PROPERTY. 16.42 1992 C/O HARNETT CO TAX DEPT $2345 X .0070 = $16.42 CO WIDE POBOX 250 LI LLI NGTON NC 27546 0701467000 TONY'S PAINT AND BOOY SHOP OVER LISTED BUSINESS PERSONAL. 22.12 1991 C/O HARNETT CO TAX DEPT $3030 X .0073 = $22.12 CO WIDE POBOX 250 LlLLlNGTON NC 27546 0701467000 TONY'S PAINT & BOOY SHOP OVER LISTED BUSINESS PERSONAL. 27.03 1990 c/O HARNETT CO TAX DEPT $3703 X .0073 = $27.03 CO WIDE . POBOX 250 LlLLlNGTON NC 27546 0211171000 CORE FAMILY CARE INC OVER LISTED BUSINESS PERSONAL 24.36 1993 C/O HARNETT CO TAX DEPT $3103 X .0070 = $21.72 CO WIDE POBOX 250 $3103 X .0003 = .93 AVE FIRE LI L LI NGTON NC 27546 $3103 X .00035= 1.09 AVE RES $3103 X .0002 = .62 AVE SCH 0211171000 CORE FAMILY CARE INC OVER LISTED BUSINESS PERSONAL. 14.61 199d C/O HARNETT CO TAX DEPT $1762 X .0073 = $12.86 CO WIDE POBOX 250 $1762 X .0004 = .70 AVE FIRE LlLLlNGTON NC 27546 $1762 X .0004 = .70 AVE RES $1762 X .0002 = .35 AVE SCH - -~~------~- ------,- ---,- ---- ,- ,- ---.---- 6 0209994000 WENDYS INTERNATIONAL INC OVER LISTED BUSINESS PERSONAL 15.10 1989 C/O HARNETT CO TAX DEPT $1912 X .0073 = $13.96 CO WIDE POBOX 250 $1912 X .0004 = .76 AVE RESC LILLI NGTON NC 27546 $1912 X .0002 = .38 AVE SCH 0201180000 BELL ATLANTIC TRICON LEASING ASSESSED ON WRONG YEAR LIFE DUE 517.55 1994 LES: PETERBILT OF FLORENCE TO NO DESCRIPTION. ATTN: PROPERTY TAX DEPT 164291 X .0070 = $450.04 CO WIDE 95N ROUTE 175 164291 X .0004 = 25.72 AVE FI PARAMUS NJ 07653 164291 X .00045= 28.93 AVE RS . 164291 X .0002 = 12.86 AVE SC 94-506456 WILLIAM WALTER PETZLER TAGS TURNED IN AFTER 8 MONTHS. 12.12 1994 ROUTE 6 BOX 1415 $1462 X .0070 = $10.23 CO WIDE SANFORD NC 27330 $1462 X .0010 = 1.46 SS FIRE $1462 X .0003 = .43 BH RESC 08-0665 0002 JOE & SUE S ANDREWS SOLID WASTE - BUILDINGS REMOVED. 75.00 1994 ROUTE 2 BOX 211 $37.50 X 2 = $75.00 SW FUQUAY VARINA 27526 *** Total *** 1236.48 Attachment 3. 1995-96 BUDGET CALENDAR February 14, 1995 Distribute Budget Forms to . Departments March 14, 1995 Departments Submit Budgets to County Manager March 28, 1995 Tax Administrator Submits Estimated Levy Information March 14-31, 1995 Budget Meetings with Department Heads April 19, 1995 Receive Budgets from Board of Education and Community College April 19, 1995 Tax Administrator Submits Final Tax Levy Information April 3-May 1, 1995 Meetings with Agencies Requesting Funding May 1, 1995 Submit Budget and Budget Message to Board . May 1, 1995 Publish Notice That Budget Has Been Filed and Public Hearing Will Be Held June 5, 1995. (Publish at least 10 days prior to June 5) May 2-31, 1995 Work Sessions with Board June 5, 1995 Hold Public Hearing on Budget -"-,.. ---.- 7 Attachment 4. RESOLUTION By the Harnett County Board of Commissioners TO SEEK NORTH CAROLINA INDUSTRIAL BUILDING RENOVATION FUND MONIES TO RENOVATE AN EXISTING BUILDING FOR ENVIROTIRE RECYCLING TECHNOLOGIES, INC. . WHEREAS, the North Carolina General Assembly, in its 1987 Session established an Industrial Building Renovation and Improvement Fund, and; WHEREAS, Harnett County qualifies as an economically distressed county for the application to the North Carolina Department of Commerce for an Industrial Building Renovation Fund Loan, and; WHEREAS, EnviroTire Recycling Technologies, Inc. requires extensive renovations to their existing manufacturing facility. NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of Commissioners that: 1. There is an economic need to assist EnviroTire Recycling Technologies, Inc. in Harnett County; 2. The renovations of an existing facility will expand the economic and employment opportunities for the residents of Harnett County; 3. The Harnett County Board of Commissioners authorizes the Chairman of the Board of Commissioners to execute all required documents in connection with an application by Harnett County for monies available from the North Carolina Department of Commerce Industrial Building Renovation and Improvement Fund. . ADOPTED this 6th day of February, 1995. Bytf.:kmr:J&> Beatrice B. HilT: Vice Chairman arnett County Board of Commissioners ATTEST: ~ 'UJ. ~"""Y Vanessa W. Yo un Clerk to the Board Attachment 5. RESOLUTION ACCEPTING .I.~ OFFER FROM J. .c.c. STATE FOR A STATE CLEAN WATER BOND LOAN AND AUJ.:.c.ORIZING J. .c.J!O EXEc:rrrION AND DELIVERY OF A LOAN AGREEMENT AND PROMISSORY NOTE IN CONNECTION .l.nAAEWITH TO FINANCE CLEAN WATER IMPRO~Wt.frS AND PROVIDING CERTAIN TERMS IN RESPECT J..w=.REOF . BE IT RESOLVED by the Board of Commissioners (the "Governing Body" ) of the County of Harnett (che ~Borrower") : Section 1. The Governing Body does hereby find and determine as follows: (a) The State of North Carolina (the "State"), pursuant to the Education, Clean Water, and Parks Bond Act of 1993, being Chapter 542 of the 1993 Sessions Laws (the "Act") , has authorized the issuance by the State of Clean Water Bonds for the purpose of making loans to local government units for the purpose of paying all or a portion of the cost of water supply systems, water conservation projects, wastewater collection systems and wastewater treatment works. - -- ~-----,------~----~ --~--~~---------~---_.----- ----------.-- ~ -- .---- - 8 (b) The Borrower has determined to borrow moneys from the State under the Clean Water Bond Loan Program established pursuant to the Act for the purpose of providing funds, together with any other available funds, to pay the costs of certain clean water bond projects as more particularly described in the Agreement hereinafter mentioned (the "projectll). (c) Pursuant to the Act, the Borrower has made application to the Department of Environment, Health, and Natural Resources for approval of a clean water bond loan to finance the Project and has received a loan commitment in the principal amount of $ 6,000,000 to finance such capital improvements. . (d) The North Carolina Local Government Commission has approved the loan in an amount not to exceed such principal amount in accordance with the provisions of the Act. (e) There has been presented to the Governing Body at this meeting forms of the following: (1) Loan Offer from the State containing various assurances required by the State in connection with the loan and the Project; and (2 ) Loan Agreement (the "Agreement") between the Borrower and the State, together with a form of the promissory note of the Borrower attached as Exhibit A thereto (the "Note") , evidencing the obligation of the Borrower to repay the loan from the State. (f) The Borrower has determined that the borrowing from the State in the manner provided in this Resolution and the Agreement is in the best interest of the Borrower. Section 2. Capitalized terms used in this Resolution and not otherwise defined herein shall have the same meanings given such . terms in the Agreement. Section 3. The Borrower hereby accepts the Loan Offer from the State, including all the assurances associated therewith. Section 4. Pursuant to the provisions of Act, the Borrower hereby authorizes the borrowing of a principal amount not to exceed $ 6,000.000 from the State under the State Clean Water Bond Loan Program. The terms and provisions of the borrowing shall be as set forth in the Agreement and the Note, subject to the provisions of this Resolution. Section 5. The interest rate on the Note shall not exceed 5.85% per annum and the latest installment of principal on the Note shall not exceed May 1, 2016. Section 6. The proceeds of the loan shall be applied to pay the costs of the Project as provided in Section 2.03 of the Agreement. Section 7. Except as provided in Section 8, the Note shall be secured solely by the Net Revenues and any Designated Non-Tax Revenues as provided in the Agreement, and the Borrower shall pledge the Net Revenues and the Designated Non-Tax Revenues for the . payment of the principal of and interest on the Note in the manner set forth in the Agreement. The principal of and interest on the Note shall not be secured by the general funds of the Borrower nor shall the Note constitute a legal or equitable pledge, charge, lien or encumbrance upon any of the property or upon any of the income, receipts or revenues of the Borrower, except the Net Revenues, the Designated Non-Tax Revenues and any other moneys and securities pledged under this Resolution, the Agreement and the Note. Neither the credit nor the taxing power of the Borrower are pledged for the payment of the principal of or interest on the Note, and the State shall not have the right to compel the exercise of the taxing power by the State of North Carolina or the Borrower or the forfeiture of any of their property in connection with any default with respect to the Note or this Agreement. ----------- 9 Section 8. The Borrower authorizes the State to include in the Agreement provisions authorizing" the State to withhold from the Borrower any State funds that would otherwise have been distributed to the Borrower in accordance with North Carolina law in amount sufficient to pay all sums than due and payable to the State as a repayment of the loan; provided, however, that such funds shall not be withheld if (a) prior to the execution of the Agreement and the Note, such funds have been pledged to secure special obligation bonds or other obligations of the Borrower or (b) after execution of the Agreement and the Note, such funds are legally pledged to . secure special obligation bonds or other obligations of the Borrower. Section 9. The forms, terms and provisions of the Loan Offer, the Agreement and the Note are hereby approved, and the Vice Chairman, Harnett County Board of Commissioners are hereby authorized and directed to execute and deliver the Loan Offer, the Agreement and the Note in substantially the forms presented, together with such insertions, modifications and deletions as they may deem necessary and appropriate, and to take such other action and to execute and deliver such other certificates, agreements, instruments or other documents as they, with the advice of counsel, may deem necessary or appropriate to effect the transactions contemplated by this Resolution, the Loan Offer, the Agreement or the Note. The officers, agents and employees of the Borrower are hereby authorized and directed to do all acts and things required of them by the provisions of this Resolution, the Loan Offer, the Agreement and the Note for the full, punctual and complete performance of the terms, covenants, provisions and agreements of the same. Section 10. This Resolution shall take effect irranediately upon its passage. . Duly adopted this 6th day of February, 1995. HARNETT COUNTY BOARD OF COMMISSIONERS ~A~~~~-f/ / ~atrice Bailey 'Hfl!, Vice ""Chairman ATTEST: / " 11~ 't)..J. (/ ~ Vanessa W. Young, C1er~ to t e Board LOAN AGREEMENT This Loan Agreement, dated February 6, 1995 (the "Agreement") , by and between the Borrower listed on the Schedule of Terms attached hereto and made a part hereof (the "Borrower" ) and the State of North Carolina (the "State"); WITNESSETH: WHEREAS, the State, pursuant to the Education, Clean Water, and Parks Bond Act of 1993, being Chapter 542 of the 1993 Sessions Laws, as amended (the "Act") , has authorized the issuance by the . State of Clean Water Bonds for the purpose of making loans to local government units for the purpose of paying all or a portion of the cost of water supply systems, water conservation projects, wastewater collection systems and wastewater treatment works; and WHEREAS, the Borrower has identified certain capital improvements that are eligible for financing under the State Clean Water Bond Loan Program (hereinafter defined) ; and WHEREAS, the Borrower deems it advisable and in the best interest of the Borrower to finance all or a portion of the cost of such capital improvements through the State Clean Water Bond Loan Program as hereinafter provided; and .-.- ~".-._-- 10 WHEREAS, pursuant to the Act, the Borrower has made application to the Department of Environment, Health, and Natural Resources for approval of a clean water bond loan and has received a loan commitment in the principal amount set forth in the Schedule of Terms to finance such capital improvements; and WHEREAS, the Commission (hereinafter defined) has approved the loan in accordance with Section 10 of the Act; and WHEREAS, the Borrower desires to borrow such amount from the State pursuant to the State Clean Water Bond Loan Program in accordance with the terms and provisions set forth in this . Agreement; NOW, THEREFORE, the parties hereto agree as follows: ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION SECTION 1.01. Defined Terms. All capitalized terms used in this Agreement and not otherwise defined shall have the following meanings: (a) "Corranission" means the Local Government Commission of North Carolina, including the Executive Committee thereof, established as a division of the Department of the State Treasurer pursuant to Chapter 159 of the General Statutes of North Carolina. (b) "Costs of the Project" means all costs and allowances which the Borrower may properly payor accrue for the Project under generally accepted accounting principles as a capital cost, including I but not limited to, engineering, inspection, legal and financial fees and costs, interest on the Note during construction . of the Project, and all other expenditures incidental and necessary or convenient thereto. (el "Current Expenses" means all reasonable or necessary current expenses of the System, including, without limitation, all ordinary and usual operating, maintenance and capital outlay expenses and all administrative, engineering, architectural and legal expenses relating to such operating, maintenance and capital outlay expenses. (d) "Designated Non-Tax Revenues II means any of the revenues sources set forth in the Schedule of Terms to be pledged as security for repayment of the Loan, which revenues do not and will not constitute a pledge of the Borrower's taxing power. (e) "Discretionary Revenues" means any revenue source set forth in the Schedule of Terms to be used by the Borrower to pay Current Expenses and any payments due and payable under this Agreement and the Note, including revenues derived from the taxing power of the Borrower; provided, however, that such funds shall only be available on an annual basis at the sole discretion of the Borrower and shall not be subject to any pledge, lien or charge created by this Agreement or the Note. . (f) "Event of Default" means any of the events specified in Section 7.01. (g) "Holder" means the State and any registered assignee of the State or any future Holder of the Note. (h) II Loan" means the advance of funds from the State to the Borrower described in Section 2.01. (i) "Loan Offer" means the Offer and Acceptance for the State Clean Water Bond Loan between the State and the Borrower. (j) "Net Revenues" means, for any particular period, the amount of Revenues in excess of Current Expenses. 1 1 .......;:.....~- (k) "Note" means the promissory note of the Borrower payable to the order of the State substantially in the fonn of Exhibit A hereto and evidencing the obligation of the Borrower to repay the Loan pursuant to the tenns of this Agreement. (1 ) "Project" means the undertaking by the Borrower for the acquisition, reconstruction, improvement, enlargement, betterment or extension of the System to be financed pursuant to this Agreement as described in the Schedule of Terms. . (m) "Resolution" means the resolution adopted by the governing body of the Borrower authorizing the proposed borrowing under the tenns of this Agreement and the execution and delivery of this Agreement and the Note. (n) "Revenues" means all income, rents, rates, fees, charges, receipts, profits and other moneys received by the Borrower in any period directly or indirectly resulting from the ownership and operation of, use of, or services or facilities furnished or to be furnished by, the System, including, without limiting the generality of the foregoing, all rights to receive the same, whether in the form of accounts receivable, contract rights or other rights, and the proceeds of such rights whether now owned or hereafter coming into existence, but shall not include customers' deposits or any other deposits subject to refund unt il such deposits have become the property of the Borrower. (0) "Schedule of Tenns" means the schedule of terms attached to this Agreement and made a part hereof setting forth certain terms and provisions relating to the Loan as more fully provided herein. (p) "State Clean Water Bond Loan Program" means the loan . program established by the State pursuant to the Act whereby the State makes loans to local government units from the proceeds of its Clean Water Bonds to finance all or a portion of eligible clean water projects. (q) "State Treasurer" means the Treasurer of the State of North Carolina, any Deputy Treasurer and any assistant duly designated by the Treasurer or any Deputy Treasurer to perform the duties of the State Treasurer under this Agreement. (r) "System" all of the Borrower's water and sewer system facilities and equipment now or hereafter existing, including all renewals, replacements, additions, extensions, expansions and improvements relating thereto. Section 1.02. Rules of Construction. Words of the masculine gender shall be deemed and construed to include the correlative words of the feminine and neuter genders. Unless otherwise indicated, words used herein shall include the plural as well as the singular number. References herein to particular articles or sections are references to the articles and sections of this Agreement unless some other reference is indicated. References herein to particular . sections or chapters of the General Statutes of North Carolina or to specific legislative acts are intended to be references to such sections, chapters or acts as they may have been amended and as they may be amended from time to time by the General Assembly of North Carolina, or any successor statute. 1_/ ARTICLE II THE LOAN AND SECURITY FOR THE LOAN Section 2.01. Amount and Term of the Loan. Subject to the t ez:ms and conditions hereof and the terms of the Note, the State hereby agrees to lend to the Borrower, and the Borrower hereby agrees to borrow from the State, a principal sum not exceeding the principal amount of the Loan set forth in the Schedule of Terms, and the Borrower shall deliver the Note to the State as evidence of . its obligations hereunder. This Agreement shall terminate immediately at such time as the outstanding principal sum, together with all accrued interest thereon, is repaid in full. The principal amount of the Note shall be paid (subject to the right of prepayment as described in Section 2.05) in twenty (20 ) annual installments on May 1 in each year, beginning May 1, 1997, all as more fully set forth in the Note. In the event that the Borrower requisitions Loan proceeds from the State in an amount less than the principal amount of the Loan set forth in the Schedule of Terms, the principal installments will be reduced in a corresponding amount in the inverse order of maturity of such principal installments unless otherwise approved in writing by the State Treasurer. Section 2.02. Interest Rate. The Note shall bear interest on the unpaid principal amount disbursed from time to time under this Agreement until paid in full, such interest payable at the times specified in the Note at the rate per annum set forth in the Schedule of Terms. Interest shall be computed on the basis of a 360-day year consisting of twelve (12) 3D-day months. Section 2.03. Disbursement and Use of Prorpp~s. The proceeds of the Loan shall be disbursed by the State to the Borrower from . time to time based upon requisitions submitted by the Borrower to the State in the manner and pursuant to roles established by the State for the State Clean Water Bond Loan Program. The proceeds of the Loan shall be used only for payment of the Costs of the Project or to reimburse the Borrower for moneys heretofore expended to pay Costs of the Project, provided that no reimbursement shall be made for any Costs of the Project paid by the Borrower prior to July 24, 1993 (the date of ratification of the Act) . Section 2.04. Pavrnent and Endorsement. The Note shall be issued in a form payable to the State, and the State shall be deemed and regarded as the absolute owner thereof for all purposes and payment of or on account of the principal of and interest on the Note shall be made only to or upon the order of the State, whether or not any transfer thereof shall be made, until the Borrower shall have received from the transferor written notice of such transfer, including the name and address of the transferee. All such payments shall be valid and effectual to satisfy and discharge the liability upon the Note to the extent of the sums so paid whether or not any transfer thereof shall be made, until the Borrower shall have received written notice of such transfer, including the name and address of the transferee. Each transferor shall give, within ten (10) days after any disposition of the Note, . written notice to the Borrower of such disposition. Thereafter, the transferee shall be deemed the Holder of the Note and shall succeed to the rights and be bound by the obligations of the Holder of the Note hereunder. All payments and prepayments made under this Agreement, including payments on the Note, so long as the State is the Holder, shall be made to the State on the date of payment at the office of the Department of Environment, Health, and Natural Resources, Division of Environmental Management, Construction Grants and Loans Section, Post Office Box 29535, Raleigh, North Carolina, 27626-0535 or at such other address as the State may designate. The State shall endorse on the Note an appropriate notation evidencing any prepayment on account of principal thereof and interest thereon; provided, however, that failure of the State to make such notation shall not relieve the -~ ---- 1 ~. ~~J Borrower of its obligations hereunder and under the Note. Payments to any registered assignee of the Note shall be payable at the place specified by such assignee. At such time as the Note shall have been paid in full, together with accrued interest thereon, the Holder shall cancel the Note and return it to the Borrower. Section 2.05. Ootional Preoavment. At all times that the State is the Holder of the Note, with the prior written consent of the State Treasurer, the Borrower shall have the right, at any time prior to the maturity date of the Note, to prepay the Note in whole . or in part, together with any prepayment premium required by the State Treasurer in accordance with this Section, plus accrued interest to the date of prepayment on the principal amount to be prepaid. Any partial prepayment shall be applied to unpaid installments of principal in the inverse order of maturity of such installments. Upon prepayment of all or any portion of the principal amount of the Note and interest accrued thereon to the date of prepayment, interest with respect to such principal amount prepaid shall cease to accrue. In connection with any such prepayment, the Borrower shall be required to pay to the State an amount substantially equal to the interest and redemption premium due on bonds issued by the State for the purpose of providing funds for the Loan (including a pro rata portion of any bonds issued to fund capitalized interest or costs of issuance with respect to such bonds) through the date of payment or redemption and any other costs that may be associated with the payment or redemption of such bonds ,~ such prepayment premium to be conclusively determined by the State Treasurer. Section 2.06. Se~~titv for Renavment of Loan. Payment of the Note, together with interest thereon, shall be secured by the Net Revenues, and the Borrower hereby pledges the Net Revenues for the . payment of the principal of and interest on the Note; provided, however, that Net Revenues not required for the payment of the principal of or interest on the Note, may, if no Event of Default shall have occurred and be continuing, be used for any lawful purpose as the Borrower may from time to time direct, free and clear of the lien created by this Section. Payment of the Note, together with interest thereon, shall also be secured by the Designated Non-Tax Revenues, if and to the extent set forth on the Schedule of Terms, and the Borrower hereby pledges and agrees to apply any such Designated Non-Tax Revenues for the payment of the principal of and interest on the Note; provided, however, that any Designated Non-Tax Revenues not required for the payment of the principal of or interest on the Note, may, if no Event of Default shall have occurred and be continuing, be used for any lawful purpose as the Borrower may from time to time direct, free and clear of the lien created by this Section. The Net Revenues, the Designated Non-Tax Revenues and any other moneys or securities pledged by the Borrower for payment of the Note shall be subject to the lien of this pledge upon execution and delivery of the Note without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding . as against all parties having claims of any kind in tort, contract or otherwise against the Borrower irrespective of whether such parties have notice thereof. The lien of the pledge shall have priority over all other liens and charges against such Net Revenues and Designated Non-Tax Revenues, except as otherwise provided in this Section and in Section 2.08. The principal of and interest on the Note shall not be secured by the general funds of the Borrower nor shall the Note constitute a legal or equitable pledge, charge, lien or encumbrance upon any of the property or upon any of the income, receipts or revenues of the Borrower, except the Net Revenues, the Designated Non-Tax Revenues and any other moneys and securities pledged under this Agreement, the Note or the Resolution, including any income, receipt or revenues subject to the provisions of Section 2.07. -- - -----.-----.----- -- -- - 14 Neither the credit nor the taxing power of the Borrower are pledged for the payment of the principal of or interest on the Note, and the State shall not have the right to compel the exercise of the taxing power by the State of North Carolina or the Borrower or the forfeiture of any of their property in connection with any default with respect to the Note or this Agreement. In addition to the Net Revenues and the Designated Non-Tax Revenues, the Loan may be payable from any Discretionary Funds set forth in the Schedule of Terms or any other available funds as provided in Section 2.09. - Section 2.07. Intercent. Upon failure of the Borrower to make any scheduled payment on the Note, the State may withhold from the . Borrower any State shared revenues that would otherwise have been distributed to the Borrower in accordance with North Carolina law in amount sufficient to cure any deficiency in such payments due and payable under the Note and apply such funds to pay all sums then due and payable on the Note; provided, however, that such funds shall not be withheld if (a) prior to the execution of this Agreement and the Note, such funds have been pledged to secure special obligation bonds or other obligations of the Borrower or (b) after execution of this Agreement and the Note, such funds are legally pledged to secure special obligation bonds or other obligations of the Borrower. At any time after the execution and delivery of this Agreement and the Note until such time as the Note, together with interest thereon, is paid in full, the Borrower shall not pledge any State funds to secure special obligation bonds or any other obligations of the Borrower without the prior written consent of the State Treasurer as provided in Section 10(f) of the Act. Section 2.08. Other Obliqations. Subject to the conditions hereinafter provided in this Section, the Borrower may issue additional bonds, notes or other obligations secured by and payable on a parity with the Note with respect to the pledge of Net Revenues or with respect to the pledge of Des ignated Non-Tax . Revenues; provided, however, that, if an Event of Default specified in Section 6.0l(a) , (c) or (d) shall have occurred and be continuing, the Borrower shall not issue additional notes or other obligations payable on a parity basis with the Note and secured on a parity basis with the Note until such time as the Event of Default is no longer continuing. In addition, the Note is payable on a parity with any bonds, notes or other obligations heretofore issued or incurred by the Borrower and secured by or payable from the Net Revenues or the Designated Non-Tax Revenues. The Net Revenues and Designated Non-Tax Revenues shall be applied to the payment of the principal of and interest on the Note in any manner consistent with the provisions of this Section and the applicable provisions of North Carolina law and in accordance with the provisions of any existing order, resolution, indenture or other agreement authorizing and securing such bonds, notes or other obligations. The Borrower shall not incur or permit to exist any indebtedness for borrowed money secured by the Net Revenues or the Designated Non-Tax Revenues except as authorized pursuant to this Section. Section 2.09. Annlication of Available Funds. In addition to . Section 2.06, the Note is payable from the Discretionary Revenues, if and to the extent set forth in the Schedule of Terms, appropriated by the Borrower on an annual basis and any other available funds of the Borrower not otherwise restricted as to use by law; provided, however, that no provision of this Agreement or the Note shall be construed or interpreted as creating a pledge of the faith and credit or the taxing power of the Borrower within the meaning of any constitutional debt limitation. Except as provided in Section 2.06 and Section 2.07, the Borrower shall not directly, indirectly or contingently be obligated to make any payments beyond those appropriated in the sole discretion of the Borrower for any fiscal year of the Borrower, and the taxing power of the Borrower is not and may not be pledged directly, indirectly or contingently to make any payments due or to become due under this Agreement or the Note. ---.- 1r.; __.V ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BORROWER Section 3.01. Renresentations and Warranties of the Borrower. In order to induce the State to enter into this Agreement and to make the Loan to the Borrower, the Borrower represents and warrants to the State as follows: (a) The Borrower is duly organized and validly existing as a . municipal corporation or a body corporate and politic and political subdivision of the State under the Constitution and laws of the State and has full power and authority to execute and deliver this Agreement and the Note, to perfonn its obligations hereunder and thereunder. (b) This Agreement and the Note have been duly authorized, executed and delivered by the Borrower and are legal, valid and binding obligations of the Borrower enforceable in accordance wi th their respective terms; provided, however, that the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and the exercise of judicial discretion in appropriate cases. (c) The execution and delivery of this Agreement and the Note and the performance by the Borrower of its obligations hereunder and thereunder does not and will not conflict with, or result in the violation or breach of or default under, ( i) any provision of North Carolina law, incl uding any charter of the Borrower or the provisions of any ordinance, resolution or rule of the Borrower, (ii) any order, rule or regulation of any court or other governmental agency having jurisdiction over the Borrower, or (iii) . any indenture, note, loan agreement or other agreement or instrument to which the Borrower is a party or by which the Borrower or any of its property is bound. (d) The execution and delivery of this Agreement and the Note does not and will not require registration with, or the consent or approval of, or any other action by, any federal, state or other governmental authority or regulatory body, except for such approvals and may have already been obtained by the Borrower. (e) There is no litigation, investigation or proceeding of any nature pending or, to the knowledge of the Borrower, threatened (i) which might result in any material adverse change in the financial condition or operations the System, (ii) challenging or questioning the validity of this Agreement or the Note or any proceedings taken by the Borrower in connection with the adoption of the Resolution and the execution and delivery of this Agreement and the Note, or (iii) wherein an unfavorable decision, rul ing or finding would in any way materially and adversely affect the validity or enforceability of the Resolution, this Agreement or the Note (or of any other instrument required or anticipated for use in consummating the transactions contemplated thereby) . (f) Except for the Note, the Borrower has no outstanding . bonds, notes or other obligations secured by the Net Revenues or the Designated Non-Tax Revenues and has not authorized the issuance of any bonds, notes or other obligations to be secured by the Net Revenues or the Designated Non-Tax Revenues, except for such bonds, notes or other obligations which are payable on a parity with or subordinate to the Note with respect to the pledge of Net Revenues or Designated Non-Tax Revenues. (g) Prior to the execution and delivery of this Agreement and the Note, the Borrower has complied with the provisions of any existing order, resolution, indenture or other agreement authorizing and securing bonds, notes or other obligations of the Borrower relating to the issuance or incurrence of additional indebtedness thereunder. ---~-----,-~..,~-'--~ 1~ -'- U (h) The Project will be owned and operated by the Borrower solely for governmental purposes of the Borrower and will be used solely for the purpose of serving the public in general, except to the extent otherwise approved by the State Treasurer in writing. ARTICLE :IV COVENANTS OF THE BORROWER Section 4.0~. Use of Loan proceedfi. The Borrower shall use the proceeds of the Loan only in accordance with the provisions of . Section 2.03 to pay the Costs of the Project. Section 4.02. Rate Covenant. The Borrower shall fix, charge and collect rates, fees, rentals and charges for the use of and for the services furnished by the System, and shall from time to time and as often as it shall appear necessary, revise such rates, fees, rentals and charges, in order that the Revenues shall be sufficient, together (1) any Designated Non-Tax Revenues, (2) any Discretionary Revenues and (3 ) any other available funds, at all times (a) to pay the Current Expenses, (b) to meet its obligations under this Agreement and the Note and ( c) to pay any and all other amounts payable from or constituting a charge and lien upon the Revenues or Net Revenues or the Designated Non-Tax Revenues on a parity basis with amounts due and payable under this Agreement and the Note. Section 4.03. Maintenance of Svstem. The Borrower shall, in accordance with regular utilities practice, operate the System in an efficient and business like manner and at reasonable cost, and maintain the System in good repair, working order and condition, making all necessary and proper repairs, renewals, replacements additions, betterments, equippings and furnishings to the System. Section 4.04. Access to Records. At all reasonable times, and . as often as the Holder may reasonably request, permit any authorized representative designated by the Holder to have access to the financial records of the Borrower and other records relating to the operation of the System. Section 4.05. Insurance. To the extent available at reasonable cost with reasonable insurers, the Borrower shall keep, or cause to be kept, the System and the operation thereof insured, with policies payable to the Borrower against risks of direct physical loss, damage to or destruction of such properties or any part thereof, and against accidents, casualties, or negligence including liability insurance and employer's liability insurance at least to the extent that similar insurance is usually carried by municipalities operating like properties. Section 4.06. Protection of Securitv. The Borrower shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Net Revenues and Designated Non-Tax Revenues under this Agreement, the Note and the Resolution and all thE:' rights of the Holders of the Note under this Agreement, the No~= and Resolution against all claims and demands of all persons whomsoever. Section 4.07. Takina Anv Further Action Necessarv. At any and . all times, insofar as it may be authorized so to do by law, the Borrower shall adopt, pass, make, do, execute, acknowledge and deliver all and every such further resolutions, acts, deeds, conveyances, assignments, recordings, filings, transfers and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming all and singular the rights to the Net Revenues and the Designated Non-Tax Revenues pledged under this Agreement, the Note or the Resolution or assigned to payment of the Note, or intended so to be, or which the Borrower may hereafter become bound to pledge or assign. Section 4.08. C0m~li~nGe with Loan Offer. To the extent not otherwise provided for in this Agreement, the Borrower shall comply with the conditions and assurances set forth in the Loan Offer. ------ ---.-------.- 17 Section 4.09. Sale and Encumbrance of Assets of Svstem. The Borrower shall not sell, transfer, conveyor lease (whether in a single transaction or a series of transactions) or encumber all or any substantial portion of the properties or assets comprising the System without the prior written consent of the State Treasurer I such consent to be based upon the effect or possible effect of the such sale, transfer, conveyance, lease or encumbrance on the ability of the Borrower to meet its obligations under this Agreement and on such other factors as the State Treasurer deems appropriate. . Section 4.10. Exoend~t~re of Loan Proceeds. The Borrower will expend all requisitioned proceeds of the Loan to pay eligible costs of the Project within three (3 ) banking days after the receipt of such proceeds of the Loan from the State. ARTICLE V CONDITIONS PRECED~,... TO ADVANCEMENT OF LOAN PRO\..AJ!oJJS Section 5.01. Conditions. The obligation of the State to disburse the proceeds of the Loan to the Borrower as contemplated hereunder is subject to the condition precedent that the State Treasurer shall have received on or before such disbursement all of the following in form and substance satisfactory to the State Treasurer: (a) the executed Note from the Borrower payable to the order of the State, substantially in the form of Exhibit A hereto; (b) a certified copy of the Resolution of the Borrower authorizing the proposed borrowing under the terms of this Agreement and the execution and deli very of the Loan Offer, this . Agreement and the Note; resolution (c) a certified copy of the Commission's authorizing the borrowing contemplated by this Agreement and the Note; and (d) such other documents and opinions as the State Treasurer may reasonably request. ARTICLE VI DEFAULT AND REMEDIES Section 6.01. Events of Default. The occurrence of any of the following events shall constitute an Event of Default under this Agreement: (a) failure by the Borrower to pay the principal of or interest on the Note when due and payable; (b) failure by the Borrower to perform any other term, covenant or agreement contained in this Agreement, the Note or the . Resolution and the continuance of such default for sixty (60) days after written notice thereof shall have been given to the Borrower by the State; (c) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of sixty (60) days; and (d) the Borrower shall commence a voluntary case under any applicable bankruptcy I insolvency or other similar la\., now or ~--~.----,~_._~ ._~--------~~_.__._--~._.- ._-_.,.~~- 18 hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Borrower or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any action in furtherance of any of the foregoing. Section 6.02. Remedies UDon Default. If any Event of Default shall occur and be continuing, the Holder may, by written notice to the Borrower, declare this Agreement and the Note in default and, . thereafter, exercise any and all remedies available at law or in equity to enforce its rights under this Agreement and the Note, including the acceleration of the principal amount of the Note in accordance with terms thereof; provided, however, that written notice declaring this Agreement in default shall not be required in the case of the occurrence of any event described in clauses (c) and (d) above. ARTICLE VII MIS~.'1:.ANEOUS Section 7.01. Other Costs. Exoenses and Taxe!'l,. To the extent permitted by law, the Borrower agrees to pay on demand the reasonable costs and expenses, including reasonable attorney's fees and expenses, if any, incurred by the State or any other Holder in connection with the enforcement of this Agreement or the Note. The payment of any such costs by the Borrower pursuant to this Section are payable solely from Net Revenues. Section 7.02. Severabilitv. The invalidity of anyone or more covenants, phrases, clauses, sentences or paragraphs of this Agreement shall not affect the remaining portions of this . Agreement, or any part thereof, and in case of any such invalidity, this Agreement shall be construed as if such invalid covenants, phrases, clauses, sentences or paragraphs had not been inserted. Section 7.03 Headinas. Article and Section headings used in this Agreement are for convenience only and shall not affect the construction of this Agreement. Section 7.04 Waivers. No delay or omission of the Holder to exercise any right or power hereunder or under the Note or otherwise shall impair such right or power or be construed to be a waiver of any default or any acquiescence therein, and any single or partial exercise of any such right or power shall not preclude other or further exercise thereof . or the exercise of any other right. No waiver whatsoever with respect to any provision of this Agreement or the Note shall be valid unless in writing signed by the Holder and in each case only to the extent in such writing specifically set forth. All remedies herein or by law afforded shall be cumulative and shall be available to the Holder until the Holder has been paid in full in lawful money. Section 7.05 No Personal Liabilitv. No member of the governing body of the Borrower shall be individually or personally . liable for the payment of the principal of or interest on the Note. Section 7.06. Modification of Aoreement or Note. This Agreement and the Note shall not be modified or amended except in writing signed by the Borrower and the Holder. Section 7.07. Governina Law. All terms, Obligations and provisions of this Agreement and of the Note are to be determined and governed by the laws of the State of North Carolina. Section 7.08. Notic~. Any notice herein required or permitted to be given shall be deemed given (except as otherwise required by this Agreement), when given in writing and deposited in the United States mail, postage prepaid, or by overnight delivery, charges prepaid, addressed as follows: - 10 ~,J To the State: State Treasurer's Office c/o Local Government Commission 325 N. Salisbury Street Raleigh, North Carolina 27603-1385 Attention: Secretary To the Borrower: . To the person and at the address set forth in the Schedule of Terms. Section 7.09. Counternarts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts all of which together shall constitute one agreement. Section 7.10. Successors. This Agreement shall be binding upon and inure to the benefit of the Borrower, the State, and their respective successors and assigns, including any successors, whether direct or indirect, by purchase, merger, consolidation, or otheIWise, to all or substantially all of the business and/or assets of the Borrower or the State, and including a successor to the State resulting from the sale of the deposits or assets of the branch of the State which originated the Loan. IN WITNESS WHEREOF, the parties hereto by authority duly given have by their duly authorized representatives executed this Agreement as of the date first above written. County of Harnett , Borrower . [SEAL) By ;f:4A~J<<Jit Lr', Ti e: Vice Chairman AITEST: ~'VJ'.u~ Title: Clerk to the ifJard STATE OF NORTH CAROLINA By: Harlan E. Boyles State Treasurer [SEAL) By: Title: EXHIBIT A . PROMISSORY NOTE County of Harnett (the "Borrower") , for value received hereby promises to pay, but solely from the sources hereinafter referred to, to the State of North Carolina (the "State") , or registered assigns, the principal amount of Six Million Dollars ($ 6,000,000 ) , or so much as shall have been disbursed to the Borrower from time to time, together with interest on the unpaid principal balance at the interest rate set forth below until paid in full. The principal of this Note shall be payable on May 1 in the years and amounts set -- --~--~._.._.._~..- __v___~___.______.___ 20 forth on Schedule 1 attached hereto and made a part hereof; provided, however, that no principal installment shall at any time exceed the principal amount outstanding and unpaid. In the event the amount of the funds disbursed by the State to the Borrower is less than the principal amount of this Note set forth above, the principal installments set forth on Schedule 1 will be reduced in a corresponding amount in the inverse order of maturity of such principal installments unless otherwise approved in writing by the State Treasurer. Interest on the unpaid principal amount balance shall accrue and be payable semiannually on each May 1 and November 1, beginning May 1, 1995, at the rate of :i. <;: :; % per annum, computed on the basis of a 360-day year consisting of twelve 30-thirty day months. . All payments shall be applied first to interest accrued to the date of payment and then to principal_ Principal and interest on this Note shall be payable to the State, or upon assignment of this Note, to the person or entity appearing on the registration books of the Borrower as the Holder of this Note at the location specified by the Holder for the payment hereof. Initially, principal and interest shall be payable to the State at the office of the Department of Environment, Health, and Natural Resources, Division of Environmental Management, Construction Grants and Loans Section, Post Office Box 29535, Raleigh, North Carolina, 27626-0535. Principal of and interest on this Note shall be payable in any lawful money on the United States of America. This Note may be sold, transferred or otherwise disposed of, or a participation herein may be granted, without the consent of the Borrower, but the Borrower may treat the State as the Holder hereof, for all purposes, until notice of transfer shall have been filed with the Borrower signed by the State and in form satisfactory to the Borrower. At the principal office of the Finance Officer of the Borrower, the Holder hereof may register the transfer and assignment of this Note. The State, and upon assignment of this Note, the person or entity appearing on the . registration books of the Borrower shall be recognized as the absolute and sole owner hereof. This Note constitutes a special obligation of the Borrower secured solely by the Net Revenues and any Designated Non-Tax Revenues set forth in the Agreement (hereinafter mentioned) which are hereby pledged for the payment thereof, all as more fully described and to the extent provided in the Resolution (hereinafter mentioned) and the Agreement. The pledge of the Net Revenues and the Designated Non-Tax Revenues for the payment of this Note constitutes a charge and lien upon the Net Revenues and Designated Non-Tax Revenues. The principal of and interest on this Note shall not be secured by the general funds of the Borrower nor shall this Note constitute a legal or equitable pledge, charge, lien or encumbrance upon any of the property or upon any of the income, receipt, or revenues of the Borrower~ except the Net Revenues, the Designated Non-Tax Revenues and any other moneys and securities pledged under the Agreement and the Resolution. Neither the credit nor the taxing power of the State of North Carolina or of the Borrower are pledged for the payment of the principal of or interest on this Note, and no Holder of this Note shall have the right to compel the exercise of the taxing power of the State of North Carolina or of the Borrower or the forfeiture of any of their property in connection with any default with respect to this Note. . Upon failure of the Borrower to make any scheduled payment on the Note, the State may withhold from the Borrower any State shared revenues that would otherwise have been distributed to the Borrower in accordance with North Carolina law in amount sufficient to cure any deficiency in such payments due and payable under this Note and apply such funds to pay all sums then due and payable on this Note; provided, however, that such fU71-1S shall not be withheld if (a) prior to the execution of the Ag;eement and this Note, such funds have been pledged to secure special obligation bonds or other obligations of the Borrower or (b) after execution of the Agreement and this Note, such funds are legally pledged to secure special obligation bonds or other obligations of the Borrower. -- ~------_._,- --~-'" -- ---.- 01 L. _:... This Note is executed and delivered under the authority of and in full compliance with the Constitution and laws of the State of North Carolina, including particularly Section 10 of Chapter 542 of the 1993 Sessions Laws, as amended, and under and pursuant to a resolution adopted by the Borrower (the "Resolution" ) and a Loan Agreement, dated February 6 , 1992... (the "Agreement"), by and between the Borrower and the State, for the purpose of financing the Costs of the Project. All terms capitalized herein and not otherwise defined shall have the meanings given such terms in the . Agreement. If any Event of Default specified in the Agreement shall occur and be continuing, the registered Holder of this Note may by written notice to the Borrower declare this Note (together with accrued interest thereon) to be, and this Note shall thereupon become, immediately due and payable; provided, however, that in the case of the occurrence of any event described in clauses (c) or (d) of Section 6.01 of the Agreement, this Note shall become due and payable forthwith without the requirement of any such written notice. If the Holder hereof is required to undertake legal action to enforce its rights hereunder as a result of an Event of Default by the Borrower, the Borrower, to the extent permitted by law, shall be obligated to pay the actual and reasonable attorneys' fees of the registered holder hereof associated therewith, but not in excess of fifteen percent (15%) of the outstanding principal balance of this Note as of the date the Event of Default. The payments of such fees are secured solely by the Net Revenues and the Designated Non-Tax Revenues. At all times that the State is the Holder of this Note, with . the prior written consent of the State Treasurer, the Borrower shall have the right, at any time prior to the maturity date of the Note, to prepay the Note in whole or in part, together wi th any prepayment premium required by the State Treasurer as provided below, plus accrued interest to the date of prepayment on the principal amount to be prepaid. Any partial prepayment shall be applied to unpaid installments of principal in the inverse order of maturity of such installments. In connection with any such prepayment, the Borrower shall be required to pay any interest and redemption premium due on bonds issued by the State for the purpose of providing funds for the Loan (including a pro rata portion of any bonds issued to fund capitalized interest or costs of issuance with respect to such bonds) through the date of payment or redemption and any other costs that may be associated with the payment or redemption of such bonds, such prepayment premium to be conclusively determined by the State Treasurer. The Resolution and the Agreement contain, among other things, provisions for the issuance or incurrence of additional bonds, notes or other obligations of the Borrower secured by the Net Revenues or the Designated Non-Tax Revenues on a pari ty both wi th this Note and with any bonds, notes or other obligations of the Borrower which may have heretofore been issued or incurred by the Borrower and secured by Net Revenues or the Designated Non-Tax . Revenues, and reference is hereby made to the Resolution and the Agreement, copies of which are on file with the Borrower, for the foregoing and the other provisions thereof which pertain to this Note and to which the Holder hereof, by its acceptance hereof, hereby assents. It is hereby certified and red ted that all conditions, acts and things required by law to exist, to have happened and to have been performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner and that the issuance of this Note does not exceed any debt or other limit prescribed by the Constitution and laws of the State of North Carolina. --------~-.- ----- ---~--,-- .--- --- ---- ?? c:__ .!-- IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its name by its duly authorized representatives as of this 6th day of February , 199L County of Harnett , Borrower [SEAL) BY~h~~d~ ' Tirle:...Y.1C'P C~an.r Bd. of C-;;1Jlmi~c:d~s ATTEST: . ~ , 'lJ~ '-(;U. '-V}~ Title: Clerk to the BQ rd Attachment 6. FROM: Christopher L., Carr, County Tax Attorney RE: MONTHLY REPORT TO COMMISSIONERS AND STATEMENT OF FEES AND CHARGES FOR THE MONTH OF January, 1995 1. Tax Suits Dismissed: NAME SUIT NO. *AMOUNT COL. * * COURT ATTORNEY COSTS FEES Anderson Creek Township . Baldwin, John No CvD 343.82 75.00 75.00 Duryea, Richard 95 CvD 0064 487.29 261. 97 200.00 Averasboro Township Hayes, R.E. 94 CvD 1023 5,259.96 258.45 200.00 Hoskins, Derek No CvD 1,596.80 75.00 75.00 Jernigan, John W. 89 CvD 1308 1,000.61 407.70 350.00 McKoy, Randolph 93 CvD 1677 1,343.22 515.06 450.00 Morgan, Linda No cvD 391.22 75.00 75.00 Williams, Rose No CvD 1,222.09 75.00 75.00 Barbecue Township Gross, Thomas No CvD 206.75 75.00 75.00 Johnson, A.P. No CvD 2,983.66 75.00 75.00 McFalls, Charles No CvD 288.11 75.00 75.00 Moore, William 94 CvD 1768 1,508.33 314.35 250.00 Upchurch, Burton 94 cvD 0976 2,354.71 263.24 200.00 Black River Township Blalock, James No CvD 188.43 75.00 75.00 Sockell, Charles No CvD 151.83 75.00 75.00 Sorenson Christian 94 cvD 0304 4,883.99 639.37 566.87 Buckhorn Township Tudor, Marty No CvD 844.06 100.00 100.00 Duke Township 75.00 75.00 . Barefoot, Debra No CvD 1,061.11 Butler, Sandra 94 CvD 0858 446.81 261.64 200.00 Morrison, David 94 CvD 0849 765.19 257.45 200.00 Grove Township Elliott, Peggie No CvD 339.78 75.00 75.00 Lee, Fernie No CvD 415.88 75.00 75.00 Pleasant, Don 94 CvD 0978 2,014.61 263.28 200.00 Scarborough, Thomas No CvD 2,555.20 75.00 75.00 Hector's Creek Township Griffin, Frank No CvD 437.05 75.00 75.00 Johnsonvi11e Township Hicks, Geneva 94 cvD 1420 2,330.03 309.07 250.00 Leach, Myrd No CvD 556.83 75.00 75.00 - _n.._ 0':? L' ' --" Lil1inqton Township Hewi tt, Annette 93 CvD 1744 626.73 505.02 450.00 Murchison, Carolyn 94 cvD 1080 765. 71 265.87 200.00 Williams, Sarah 94 CvD 1527 661.60 263.28 200.00 stewart's Creek Township Egerton, Alan No CvD 1,510.66 75.00 75.00 Upper Little River Township Harris, Tommy No CvD 520.80 75.00 75.00 Morrison, Jerry 94 CvD 0850 737.50 235.75 175.00 Prince, Grover 94 CvD 1082 2,279.54 262.43 200.00 . Subtotal $43,079.91 $6,658.93 $5,666.87 NOTE: * Total collected includes taxes, interest and Court cos~s. ** Court costs includes attorney fees allowed by Court (where suit has been commenced) . 2. Advanced Costs: Date Explanation Charge 1-12-95 H.C. Registry - recording fee (Eric Simmons) 12.00 1-24-95 Sheriff - City of Chesapeake (Harrington) 17.00 1-25-95 Sheriff of Wake County (Hart) 10.00 1-27-95 H.C. Registry - recording fee (Valdez) 15.00 1-27-95 Sheriff of Lee County (McCauley) 10.00 1-27-95 Lillington Postmaster - service fee (Brewington) 5.50 TOTAL ADVANCED COSTS $69.50 3. New Suits Started during the month of January, 1995 . Anderson Creek Township Cayton, Sheila (December) Duryea, Richard Averasboro Township Ennis, Linda McLean, Erlene Barbecue Township Cowgill, James W. Bla~k River Township Fowler, Malcolm (December) Duke Township Hicks, Elizabeth Hec~or's Creek Township Brewington, Veola Lillington Township Hart, Woodrow Neill's Creek TownshiR Baker I Pete Stewart's Creek Township Elliott, Larry . Upper Little River Township MCCauley, Laurie 4. Other Services l. County of Harnett v. Armando Valdez et als Services rendered in connection with filing tax foreclosure against property, and obtaining a Judgment and Order of Sale; Sale of property to Harnett County $400.00 2. County of Harnett v. Eric Gene Simmons Services rendered in connection with filing tax foreclosure against property, and obtaining a Judgment and Order of Sale; Sale of property to Harnett County $610.00 TOTAL FEES - OTHER SERVICES $1,010.00 24 SUMMARY OF CHARGES & FEES Attorney's fees - Tax Suits $5,666.87 Other Services $1,010.00 Advanced Costs $69.50 BALANCE $6,746.37 de-; ;pL y/ ?-~ . Christoph~r L. Carr Post Office Box 39 Lillington, NC 27546 Telephone: (910) 893-5191 . .