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HomeMy WebLinkAbout07192001318 HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Special Meeting July 19, 2001 The Harnett County Board of Commissioners met ins special session on Thursday, Jul • p Y� Y 19, 2001 in the County Administration Building, 102 East Front Street, Lillington, North Carolina. Members present: Teddy J. Byrd, Chairman Beatrice Bailey Hill, Vice Chairman Tim McNeill Staff present: Neil Emory, County Manager Kay S. Blanchard Chairman Byrd called the meeting to order at 4:00 p.m. ISSUANCE OF Neil Emory, County Manager, presented for the Board's consideration the proposed $940, 000 WATER issuance of a $940,000 fully registered Water Bond Series 2001A and a $254,000 fully BOND SERIES 2001A registered Water Bond, Series 2001B for Riverside Water and Sewer District and$254, 000 WATER extension projects. BOND SERIES 2001B Commissioner Hill moved to authorize sale of the bonds noted above and to authorize the Chairman and Clerk to execute all necessary documents associated with the sale of the water bonds. Commissioner McNeill seconded the motion and it passed unanimously. (Attachment 1) • There being no further business, Commissioner McNeill moved for adjournment. Commissioner Hill seconded the motion and it passed unanimously. The Harnett County Board of Commissioners' speI l meeting, July 19, 2001, duly adjourned at 4:05 p.m. n /] . tsyr l%i_ J. &-g.+u� Kay S4 Blanchard, Clerk to the Board Attachment 1. EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, SITTING AS THE GOVERNING BODY OF RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY • The Board of Commissioners of the County of Harnett, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, convened in a special session on July 19, 2001 at 4:00 p.m. in the Harnett County Office Building, 102 East Front Street, Lillington, North Carolina. Board members present were: Teddy J. Byrd, Beatrice Bailey Hill, Tim McNeill. Dan B. Andrews and Walt Titchener were absent. Commissioner Beatrice B. Hill presented the following resolution and moved that it be adopted: WHEREAS, the bond order hereinafter described has taken effect and the Board of Commissioners of the County of Harnett (the "Board"), sitting as the governing body of Riverside Water and Sewer District of Harnett County (the "Issuer"), desires to make provision for the issuance of a $940,000 portion of the bonds authorized by said bond order; and WHEREAS, the Board of the Issuer desires to sell the bonds at private sale without advertisement at a rate of interest not exceeding 4.75% per annum; and WHEREAS, the Board of the Issuer has been informed of United States of America's undertaking to purchase said bonds at the rate of 4.75% per annum, NOW THEREFORE, • BE IT RESOLVED by the Board of Commissioners of the County of Harnett, sitting as the governing body of the Issuer, as follows: (1) The Issuer shall issue its bonds of the aggregate principal amount of $940,000 pursuant to and in accordance with the water bond order adopted by the Board of the Issuer on October 21, 1996. The bonds shall be designated "Water Bond, Series 2001A," and referred to herein as the "Bonds." The period of usefulness of the capital project to be financed by the issuance of the Bonds is a period of forty years computed from the date of the Bonds. (2) The Bonds shall be payable in annual installments on June 1 as follows: Year Principal Amount Year Principal Amount Year Principal Amount 2004 $11,000 2018 $18,000 2032 $35,500 2005 11,500 2019 18,500 2033 35,000 2006 12,000 2020 19,500 2034 37,000 2007 12,500 2021 20,000 2035 38,500 2008 13,000 2022 20,500 2036 40,000 2009 13,500 2023 22,000 2037 42,000 2010 14,000 2024 23,000 2038 44,000 2011 14,500 2025 24,500 2039 44,000 2012 15,000 2026 25,500 2040 44,000 2013 15,500 2027 27,000 2041 44,000 2014 16,000 2028 28,000 2015 16,500 2029 30,000 2016 17,000 2030 30,000 2017 17,500 2031 32,000 (3) The Bonds shall be dated June 1, 2001 (unless awarded to the United States of America acting by and through Rural Utilities Service, an agency of the United States Department of Agriculture, in which case the Bonds shall be dated as of the date of delivery thereof), and shall bear interest from their date until they shall mature at a rate which shall not exceed 4.75% per annum. Such interest shall be payable semi-annually on June 1 and December 1 in each year; provided, however, that if the Bonds shall be purchased by the United States of America, the interest on such Bonds to the maturity thereof shall be payable on June 1, 2002 and annually thereafter on the 1 st day of June of each year. (4) The Bonds shall be issued as fully registered bonds without coupons in the denomination of $500 each or any integral multiple thereof and numbered in accordance with the system of the • hereinafter designated bond registrar (the "Multiple Bonds"), or, at the option of the purchaser, as a single fully registered bond without coupons in the denomination of $940,000 (the "Single Bond") payable in installments. If issued as Multiple Bonds, the Bonds shall bear the facsimile signatures of the Chairperson of the governing body of the Issuer and the Clerk of the Issuer and a facsimile of the corporate seal of the Issuer and the Certificate of Approval of the Local Government Commission shall bear a facsimile signature of the Secretary of said Commission. If issued as a Single Bond, the Bond shall be signed by the Chairperson of the governing body of the Issuer and the Clerk of the Issuer, the corporate seal of the Issuer shall be impressed thereon and the Certificate of Approval of the Local Government Commission shall be signed by a designated assistant of said Commission. (5) Within ninety days after the receipt by the Issuer of the written request of the registered owner of the Single Bond, the Issuer will, at its own expense, prepare and execute Multiple Bonds in the form hereinafter set forth, of type, composition and printed on paper of customary weight and strength, in an aggregate principal amount equal to the unpaid principal amount of the Single Bond, and having maturities corresponding to the principal installments of the Single Bond then unpaid; and the Issuer will cause the Multiple Bonds to be presented to the transfer agent to be designated by the Issuer (the "Transfer Agent") for endorsement and for dating the authentication blank thereon • and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the Single Bond. (6) Except as in the next succeeding paragraph provided, interest on the Bonds shall be paid by check by the Issuer or a paying agent to be designated by the Issuer (the 'Paying Agent"), and mailed to the registered owner of record as of 15 days prior to the interest payment date at his address as it appears on the bond registry books of the Transfer Agent, and principal of the Bonds shall be paid by check by the Paying Agent upon presentation of the Bonds for payment. The Single Bond purchased by the United States of America shall be payable by the Issuer in installments of principal and interest without presentation. (7) So long as the Bonds are held or insured by the United States of America, whether as a Single Bond or as Multiple Bonds, the principal thereon may be prepaid in whole or in part in inverse order of maturity without premium at any time. (8) The Bonds not held or insured by the United States of America and maturing on and after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the • Issuer on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a redemption price equal to the principal amount of each bond to be redeemed together with accrued interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2 of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or part thereof between the redemption date and the maturity date of each bond to be redeemed, provided that such premium shall not exceed two percent (2%) of such principal amount. If less than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be selected by the Issuer in such manner as it may determine. If less than all of the Bonds of different maturities are called for redemption, the Bonds to be redeemed shall be called in the inverse order of their maturities. If less than all of the principal amount of a Bond is to be redeemed, the Issuer shall exchange a bond of the denomination representing the portion of the Bond not redeemed to the registered owner in exchange for the Bond a portion of which is to be redeemed. Whenever the Issuer shall elect to redeem Bonds, notice of such redemption of Bonds, stating the redemption date, redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their • numbers and further stating that on such redemption date there shall become due and payable upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, shall be given not less than 30 days nor more than 45 days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses appear on the records of the Transfer Agent, as bond registrar, but any failure in respect of such mailing will not affect the validity of the redemption. 2 (9) The Bonds are transferable by the registered owner thereof or his duly authorized attorney at the principal office of the Transfer Agent or the Issuer, as appropriate, upon surrender of the Bonds, accompanied by a duly executed instrument of transfer in form and with guaranty of signature satisfactory to the Transfer Agent or the Issuer, as appropriate, and upon payment of any taxes or other governmental charges incident to such transfer. Upon any such transfer a new registered bond without coupons of the same maturity and in the same aggregate principal amount will be issued to the transferee. The person in whose name the Bond is registered shall be deemed the owner hereof for all purposes, and the Issuer, the Paying Agent and the Transfer Agent shall not • be affected by any notice to the contrary. The Bonds are exchangeable at the sole expense of the Issuer at any time, upon ninety days' notice, at the request of the registered owner thereof and upon surrender of the Bonds to the Transfer Agent or the Issuer, as appropriate, together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Transfer Agent or the Issuer, as appropriate, for fully registered Bonds in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of the Bonds and in the form of such fully registered multiple Bonds as is provided for in this resolution authorizing the issuance of the Bonds. (10) The Multiple Bonds and the provisions for the registration thereof, for the approval of the Multiple Bonds by the Secretary of the Local Government Commission, and for authentication of the Multiple Bonds by the Transfer Agent shall be in substantially the following • • form: No. R (Form of Multiple Bonds) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY INTEREST RATE 4.75% REGISTERED OWNER: PRINCIPAL SUM: WATER BOND, SERIES 2001A DATE OF ORIGINAL MATURITY ISSUE June 1, 2001 DOLLARS RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter referred to as the 'District"), a county water and sewer district in the State of North Carolina, acknowledges itself indebted and for value received hereby promises to pay to the registered owner named above on the date specified above, upon the surrender hereof, the principal sum shown above and to pay to the registered owner hereof interest thereon from the date of this bond until it shall mature at the rate per annum as specified above, payable semi-annually on June I and December I of each year. Principal of this bond is payable by check by First -Citizens Bank & Trust Company, in Raleigh, North Carolina, as paying agent, or by the duly appointed alternate or successor paying agent (the 'Paying Agent"), in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. Interest on this bond is payable by check by the Paying Agent mailed to the registered owner hereof at his address as it appears on the bond registry books of First -Citizens Bank & Trust Company, in Raleigh, North NYC 386477.1 56910 00747 7115101 927: 16 PM 7 32P Carolina, as transfer agent (the "Transfer Agent"), at the close of business on the fifteenth day of the calendar month (whether or not a business day) next preceding each interest payment date, in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. This bond is transferable by the registered owner hereof or his duly authorized attorney at the principal office of the Transfer Agent, upon surrender of this bond, accompanied by a duly executed instrument of transfer in form and with guaranty of signature satisfactory to the Transfer Agent, and upon payment of any taxes or other governmental charges incident to such transfer. • Upon any such transfer a new registered bond without coupons of the same maturity and in the same aggregate principal amount will be issued to the transferee. The person in whose name this bond is registered shall be deemed the owner hereof for all purposes, and the District, the Paying Agent and the Transfer Agent shall not be affected by any notice to the contrary. This bond is exchangeable at the sole expense of the District at any time, upon ninety days' notice, at the request of the registered owner hereof and upon surrender of this bond to the Transfer Agent together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Transfer. Agent, for fully registered bonds in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of this bond. This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act, Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of • the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the indebtedness evidenced thereby were approved by a majority of the qualified voters of the District voting at an election held on January 7, 1997. The bonds not held or insured by the United States of America and maturing on and after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the District on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a redemption price equal to the principal amount of each bond to be redeemed together with accrued interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2 of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or part thereof between the redemption date and the maturity date of each bond to be redeemed, provided that such premium shall not exceed two percent of such principal amount. If less than all of the bonds of different maturities are called for redemption, the bonds to be redeemed shall be called in the inverse order of their maturities. If less than all of the bonds of any maturity are called for redemption, the bonds to be redeemed shall be selected by the District in such manner as it may • determine. If less than all of the principal amount of a bond is to be redeemed, the District shall exchange a bond of the denomination representing the portion of the bond not redeemed to the registered owner in exchange for the bond, a portion of which is to be redeemed. Whenever the District shall elect to redeem bonds, notice of such redemption of bonds, stating the redemption date, redemption price and identifying the bonds or portions thereof to be redeemed by reference to their numbers and further stating that on such redemption date there shall become due and payable upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium 323 • and interest accrued to the redemption date, shall be given not less than 30 days nor more than 45 days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses appear on the records of the Transfer Agent, but any failure in respect of such mailing will not affect the validity of the redemption. So long as this bond is held or insured by the United States of America, the principal thereof may be prepaid in whole or in part in inverse order of maturity without premium at any time . It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this bond, exist, have been performed and have happened, and that the amount of this bond, together with all other indebtedness of the District, is within every debt and other limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in accordance with its terms. This bond shall not be valid or become obligatory for any purpose until the certifications hereon shall have been signed by authorized representatives of the Local Government Commission of North Carolina and the Transfer Agent. IN WITNESS WHEREOF, the District has caused this bond to bear the facsimile signatures of the Chairperson of the governing body of the District and the Clerk of the District and a facsimile of the corporate seal of the District to be imprinted hereon, and this bond to be dated June 1, 2001. (DISTRICT) (SEAL) (facsimile signature) Chairperson, governing body of Harnett County Water and Sewer District (facsimile signature) Clerk, Harnett County Water and Sewer District Transfer Agent's Certificate of Authentication This bond is one of the bonds of the issue designated herein and issued under the within - mentioned bond order. FIRST -CITIZENS BANK & TRUST COMPANY By: Date of Authentication Authorized Signatory CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issue hereof has been approved under the provisions of The Local Government Bond Act. (facsimile signature) Secretary of the Local Government Commission 324 ASSIGNMENT For value received the undersigned registered owner thereof hereby sells, assigns, and transfers unto the within bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. • Signature Guaranteed: Dated: NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this by guarantor institution participating in the assignment must correspond with the name Securities Transfer Agents Medallion Program as it appears upon the fact of the within or in such other guarantee program in bond in every particular, without alteration accordance with Securities and Exchange or enlargement or any change whatever. Commission Rule 17 Ad-15. (11) The Single Bond, the provisions for assignment thereof and for approval thereof by the Secretary of the Local Government Commission to be endorsed thereon shall be in substantially the following form: (form of Single Bond) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY WATER BOND, SERIES 2001A R-1 $940, 000 RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter called the "District"), a county water and sewer district in the State of North Carolina, acknowledges itself indebted and for value received, hereby promises to pay to [UNITED STATES OF AMERICA, ACTING BY AND THROUGH RURAL UTILITIES SERVICE, AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE], or its registered assigns, the principal sum of $940,000 on the first day of June in years and installments, as follows: Year Principal Amount Year Principal Amount Year Principal Amount 2004 $11,000 2018 $18,000 2032 $33,500 2005 11,500 2019 18,500 2033 35,000 2006 12,000 2020 19,500 2034 37,000 2007 12,500 2021 20,000 2035 38,500 2008 13,000 2022 20,500 2036 40,000 2009 13,500 2023 22,000 2037 42,000 2010 14,000 2024 23,000 2038 44,000 2011 14,500 2025 24,500 2039 44,000 2012 15,000 2026 25,500 2040 44,000 2013 15,500 2027 27,000 2041 44,000 2014 16,000 2028 28,000 2015 16,500 2029 30,000 2016 17,000 2030 30,000 2017 17,500 2031 32,000 NYC 386477,1 56910 00747 7115101 927. 16 PM 14 u • ,2 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America, and to pay interest on the balance of said principal sum from time to time remaining unpaid, in like coin or currency, at the rate of four and seventy-five hundredths per centum (4.75%) per annum on June 1, 2002, and annually thereafter on June 1 of each year, until the principal amount hereof has been paid. Payments of the installments of principal and interest then due and payable on this bond shall be made without presentation or surrender hereof. Upon final payment of principal and • interest, this bond shall be surrendered to the District for cancellation. This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act, Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the indebtedness evidenced thereby were approved by a majority of the qualified voters of the District voting at an election held on January 7, 1997. This bond is exchangeable at the sole expense of the District at any time, upon ninety days' notice, at the request of the registered owner hereof and upon surrender of this bond to the District, for fully registered bonds, in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of the bonds. This bond may be assigned and upon such assignment the assignor shall promptly notify the • District by registered mail, and the assignee shall surrender the same to the District or its designated transfer agent for transfer on the registration records, or in exchange for fully registered bonds in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of such single registered bond and bearing maturities corresponding to the principal installments on such single registered bond then unpaid, and every such assignee shall take this bond subject to such condition. The person in whose name this bond is registered shall be deemed the owner thereof for all purposes. So long as this bond is held or insured by the United States of America, the principal in- stallments hereof may be prepaid in whole or in part in inverse order of maturity at any time. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this bond, exist, have been performed and have happened, and that this bond is within every limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in • accordance with its terms. IN WITNESS WHEREOF, the District has caused this bond to be signed by the Chairperson of the governing body of the District and the Clerk of the District and sealed with the corporate seal of the District and this bond to be dated (DISTRICT) (SEAL) Chairperson, governing body of Riverside Water and Sewer District of Harnett County Clerk, Riverside Water and Sewer District of Harnett County 326 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within bond has been approved under the provisions of The Local Government Bond Act. Secretary of the Local Government Commission By: •Designated Assistant ASSIGNMENT For value received the undersigned registered owner thereof hereby sells, assigns, and transfers unto the within bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Signature Guaranteed: Dated: NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this by guarantor institution participating in the assignment must correspond with the name Securities Transfer Agents Medallion Program as it appears upon the fact of the within or in such other guarantee program in bond in every particular, without alteration accordance with Securities and Exchange or enlargement or any change whatever. Commission Rule 17 Ad- IS. (12) Actions taken or to be taken by officials of the Issuer to select paying agents, transfer • agents and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E- 8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. (13) The Bonds shall be sold to the United States of America acting by and through Rural Utilities Service, an agency of the United States Department of Agriculture, at private sale without advertisement in the form of a single registered bond bearing interest at the rate of 4.875% per annum, provided that the Local Government Commission shall determine that such price is in the best interest of the Issuer. (14) The Chairperson of the governing body of the Issuer and the Clerk of the Issuer are hereby authorized and directed to cause the Bonds to be prepared and, when they shall have been duly sold by the Local Government Commission, to execute the Bonds and to turn the Bonds over to the State Treasurer of North Carolina or to the Transfer Agent for delivery to the purchaser or. purchasers to whom the Bonds may be sold by said Commission. (15) The Issuer covenants to comply with the provisions of the Internal Revenue Code of 1996, as amended (the "Code"), to the extent required to preserve the exclusion from gross income • of interest on the Bonds for federal income tax purposes. (16) The Issuer hereby represents that (i) the proposed $940,000 Water Bond, Series 2001A, is not a private activity bond as defined in the Code and (ii) the Issuer, together with any subordinate entities of the Issuer and any entities which issue obligations on behalf of the Issuer, reasonably expects that it will not issue and designate in the aggregate more than $10,000,000 of tax-exempt obligations (other than private activity bonds which are not qualified 501(c)(3) bonds) during the current calendar year. In addition, the Issuer hereby designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code. 327 (17) The power to make any election on behalf of the Issuer with respect to the arbitrage rebate provisions of the Code applicable to the Bonds is hereby delegated to the Chairperson of the governing body of the Issuer and the Clerk of the Issuer. The motion having been duly seconded, and the resolution having been considered, it was adopted by the following vote: AYES: 3 • NAYS: 0 Attachment 2. EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, SITTING AS THE GOVERNING BODY OF RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY The Board of Commissioners of the County of Harnett, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, convened in a special session on July 19, 2001 at 4:00 p.m. in the Harnett County Office Building,102 East Front Street, Lillington, North Carolina. Board members present were: Teddy J. Byrd, Beatrice Bailey Hill, Tim McNeill. Dan B. Andrews and Walt Titchener were absent. Commissioner Beatrice B. Hill presented the following resolution and moved that it be adopted: WHEREAS, the bond order hereinafter described has taken effect and the Board of Commissioners of the County of Harnett (the "Board"), sitting as the governing body of Riverside Water and Sewer District of Harnett County (the "Issuer"), desires to make provision for the issuance of a $254,000 portion of the bonds authorized by said bond order, and WHEREAS, the Board of the Issuer desires to sell the bonds at private sale without advertisement at a rate of interest not exceeding 4.875% per annum; and WHEREAS, the Board of the Issuer has been informed of United States of America's undertaking to purchase said bonds at the rate of 4.875% per annum, NOW THEREFORE, • BE IT RESOLVED by the Board of Commissioners of the County of Harnett, sitting as the governing body of the Issuer, as follows: (1) The Issuer shall issue its bonds of the aggregate principal amount of $254,000 pursuant to and in accordance with the water bond order adopted by the Board of the Issuer on October 21, 1996. The bonds shall be designated "Water Bond, Series 2001B," and referred to herein as the Series 2001B NYC 386481, 156910007477/15/019-1&04 PM 28 "Bonds." The period of usefulness of the capital project to be financed by the issuance of the Bonds is a period of forty years computed from the date of the Bonds. (2) The Bonds shall be payable in annual installments on June 1 as follows: Year Principal Amount Year Principal Amount Year Principal Amount 2004 $3,000 2018 $5,500 2032 $9,000 2005 3,000 2019 5,500 2033 9,000 2006 3,000 2020 6,000 2034 10,000 2007 3,000 2021 6,000 2035 11,000 2008 3,000 2022 6,000 2036 11,000 2009 3,500 2023 6,000 2037 12,000 2010 3,500 2024 6,500 2038 12,000 2011 3,500 2025 6,500 2039 12,000 2012 3,500 2026 7,000 2040 12,000 2013 4,000 2027 7,000 2041 12,000 2014 4,000 2028 7,000 2015 4,500 2029 7,000 2016 5,000 2030 8,000 2017 5,000 203] 8,500 (3) The Bonds shall be dated June 1, 2001 (unless awarded to the United States of America acting by and through Rural Utilities Service, an agency of the United States Department of Agriculture, in which case the Bonds shall be dated as of the date of delivery thereof), and shall bear interest from their date until they shall mature at a rate which shall not exceed 4.875% per annum. Such interest shall be payable semi-annually on June 1 and December 1 in each year; provided, however, that if the Bonds shall be purchased by the United States of America, the interest on such Bonds to the maturity thereof shall be payable on June 1, 2002 and annually • thereafter on the 1 st day of June of each year. • (4) The Bonds shall be issued as fully registered bonds without coupons in the denomination of $500 each or any integral multiple thereof and numbered in accordance with the system of the hereinafter designated bond registrar (the "Multiple Bonds"), or, at the option of the purchaser, as a single fully registered bond without coupons in the denomination of $254,000 (the "Single Bond") payable in installments. If issued as Multiple Bonds, the Bonds shall bear the facsimile signatures of the Chairperson of the governing body of the Issuer and the Clerk of the Issuer and a facsimile of the corporate seal of the Issuer and the Certificate of Approval of the Local Government Commission shall bear a facsimile signature of the Secretary of said Commission. If issued as a Single Bond, the Bond shall be signed by the Chairperson of the governing body of the Issuer and the Clerk of the Issuer, the corporate seal of the Issuer shall be impressed thereon and the Certificate of Approval of the Local Government Commission shall be signed by a designated assistant of said Commission. (5) Within ninety days after the receipt by the Issuer of the written request of the registered owner of the Single Bond, the Issuer will, at its own expense, prepare and execute Multiple Bonds in the form hereinafter set forth, of type, composition and printed on paper of customary weight and • strength, in an aggregate principal amount equal to the unpaid principal amount of the Single Bond, and having maturities corresponding to the principal installments of the Single Bond then unpaid; and the Issuer will cause the Multiple Bonds to be presented to the transfer agent to be designated by the Issuer (the "Transfer Agent") for endorsement and for dating the authentication blank thereon and for delivery to the registered owner of the Single Bond upon surrender and cancellation of the Single Bond. (6) Except as in the next succeeding paragraph provided, interest on the Bonds shall be paid by check by the Issuer or a paying agent to be designated by the Issuer (the 'Paying Agent"), and 329 mailed to the registered owner of record as of 15 days prior to the interest payment date at his address as it appears on the bond registry books of the Transfer Agent, and principal of the Bonds shall be paid by check by the Paying Agent upon presentation of the Bonds for payment. The Single Bond purchased by the United States of America shall be payable by the Issuer in installments of principal and interest without presentation. (7) So long as the Bonds are held or insured by the United States of America, whether as a • Single Bond or as Multiple Bonds, the principal thereon may be prepaid in whole or in part in inverse order of maturity without premium at any time. (9) The Bonds not held or insured by the United States of America and maturing on and after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the Issuer on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a redemption price equal to the principal amount of each bond to be redeemed together with accrued interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2 of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or part thereof between the redemption date and the maturity date of each bond to be redeemed, provided that such premium shall not exceed two percent (2%) of such principal amount. If less than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be selected by the Issuer in such manner as it may determine. If less than all of the Bonds of different maturities are called for redemption, the Bonds to be redeemed shall be called in the inverse order of their maturities. • If less than all of the principal amount of a Bond is to be redeemed, the Issuer shall denomination the of the Bond not redeemed to the exchange a bond of the representing portion registered owner in exchange for the Bond a portion of which is to be redeemed. Whenever the Issuer shall elect to redeem Bonds, notice of such redemption of Bonds, stating the redemption date, redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their numbers and further stating that on such redemption date there shall become due and payable upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, shall be given not less than 30 days nor more than 45 days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses appear on the records of the Transfer Agent, as bond registrar, but any failure in respect of such mailing will not affect the validity of the redemption. (9) The Bonds are transferable by the registered owner thereof or his duly authorized attorney at the principal office of the Transfer Agent or the Issuer, as appropriate, upon surrender of the Bonds, accompanied by a duly executed instrument of transfer in form and with guaranty of • signature satisfactory to the Transfer Agent or the Issuer, as appropriate, and upon payment of any taxes or other governmental charges incident to such transfer. Upon any such transfer a new registered bond without coupons of the same maturity and in the same aggregate principal amount will be issued to the transferee. The person in whose name the Bond is registered shall be deemed the owner hereof for all purposes, and the Issuer, the Paying Agent and the Transfer Agent shall not be affected by any notice to the contrary. The Bonds are exchangeable at the sole expense of the Issuer at any time, upon ninety days' notice, at the request of the registered owner thereof and upon surrender of the Bonds to the Transfer Agent or the Issuer, as appropriate, together with an assignment duly executed by the 330 registered owner or his attorney or legal representative in such form as shall be satisfactory to the Transfer Agent or the Issuer, as appropriate, for fully registered Bonds in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of the Bonds and in the form of such fully registered multiple Bonds as is provided for in this resolution authorizing the issuance of the Bonds. (10) The Multiple Bonds and the provisions for the registration thereof, for the approval of the Multiple Bonds by the Secretary of the Local Government Commission, and for authentication of the Multiple Bonds by the Transfer Agent shall be in substantially the following form: No. R- (Form of Multiple Bonds) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY INTEREST RATE 4.875% REGISTERED OWNER: PRINCIPAL SUM: WATER BOND, SERIES 2001B DATE OF ORIGINAL MATURITY ISSUE June 1, 2001 DOLLARS RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter referred to as the "District"), a county water and sewer district in the State of North Carolina, acknowledges itself indebted and for value received hereby promises to pay to the registered owner named above on the date specified above, upon the surrender hereof, the principal sum shown above and to pay to the registered owner hereof interest thereon from the date of this bond until it shall mature at the rate per annum as specified above, payable semi-annually on June 1 and December 1 of each year. Principal of this bond is payable by check by First -Citizens Bank & Trust Company, in Raleigh, North Carolina, as paying agent, or by the duly appointed alternate or successor paying agent (the 'Paying Agent"), in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. Interest on this bond is payable by check by the Paying Agent mailed to the registered owner hereof at his address as it appears on the bond registry books of First -Citizens Bank & Trust Company, in Raleigh, North Carolina, as transfer agent (the "Transfer Agent"), at the close of business on the fifteenth day of the calendar month (whether or not a business day) next preceding each interest payment date, in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. This bond is transferable by the registered owner hereof or his duly authorized attorney at the principal office of the Transfer Agent, upon surrender of this bond, accompanied by a duly executed instrument of transfer in form and with guaranty of signature satisfactory to the Transfer Agent, and upon payment of any taxes or other governmental charges incident to such transfer. Upon any such transfer a new registered bond without coupons of the same maturity and in the same aggregate principal amount will be issued to the transferee. The person in whose name this bond is registered shall be deemed the owner hereof for all purposes, and the District, the Paying Agent and the Transfer Agent shall not be affected by any notice to the contrary. • is • 331 This bond is exchangeable at the sole expense of the District at any time, upon ninety days' notice, at the request of the registered owner hereof and upon surrender of this bond to the Transfer Agent together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Transfer Agent, for fully registered bonds in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of this bond. • This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act, Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the indebtedness evidenced thereby were approved by a majority of the qualified voters of the District voting at an election held on January 7, 1997. The bonds not held or insured by the United States of America and maturing on and after June 1, 2012 shall be subject to redemption prior to their stated maturities at the option of the District on or after June 1, 2011, in whole at any time or in part on any interest payment date, at a redemption price equal to the principal amount of each bond to be redeemed together with accrued interest thereon to the redemption date plus a redemption premium of one-half of one percent (1/2 of 1%) of the principal amount of each bond to be redeemed for each period of twelve months or part thereof between the redemption date and the maturity date of each bond to be redeemed, • provided that such premium shall not exceed two percent of such principal amount. If less than all of the bonds of different maturities are called for redemption, the bonds to be redeemed shall be called in the inverse order of their maturities. If less than all of the bonds of any maturity are called for redemption, the bonds to be redeemed shall be selected by the District in such manner as it may determine. If less than all of the principal amount of a bond is to be redeemed, the District shall exchange a bond of the denomination representing the portion of the bond not redeemed to the registered owner in exchange for the bond, a portion of which is to be redeemed. Whenever the District shall elect to redeem bonds, notice of such redemption of bonds, stating the redemption date, redemption price and identifying the bonds or portions thereof to be redeemed by reference to their numbers and further stating that on such redemption date there shall become due and payable upon each bond or portion thereof so to be redeemed, the principal thereof, redemption premium and interest accrued to the redemption date, shall be given not less than 30 days nor more than 45 days prior to the redemption date in writing to the registered owners, by pre -paid first-class mail, at their addresses as such addresses appear on the records of the Transfer Agent, but any failure in • respect of such mailing will not affect the validity of the redemption. So long as this bond is held or insured by the United States of America, the principal thereof may be prepaid in whole or in part in inverse order of maturity without premium at any time. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this bond, exist, have been performed and have happened, and that the amount of this bond, together with all other indebtedness of the District, is within every debt and other limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in accordance with its terms. This bond shall not be valid or become obligatory for any purpose until the certifications hereon shall have been signed by authorized representatives of the Local Government Commission of North Carolina and the Transfer Agent. IN WITNESS WHEREOF, the District has caused this bond to bear the facsimile signatures of the Chairperson of the governing body of the District and the Clerk of the District and a facsimile of the corporate sea] of the District to be imprinted hereon, and this bond to be dated June 1, 2001. (DISTRICT) (SEAL) (facsimile si ng ature) Chairperson, governing body of Harnett County Water and Sewer District (facsimile signature) Clerk, Harnett County Water and Sewer District Transfer Agent's Certificate of Authentication This bond is one of the bonds of the issue designated herein and issued under the within - mentioned bond order. FIRST -CITIZENS BANK & TRUST COMPANY By: Date of Authentication Authorized Signatory CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issue hereof has been approved under the provisions of The Local Government Bond Act. (facsimile signature) Secretary of the Local Government Commission ASSIGNMENT For value received the undersigned registered owner thereof hereby sells, assigns, and transfers unto thereunder and hereby irrevocably constitutes and appoints the within bond and all rights attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Signature Guaranteed: Dated: NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this by guarantor institution participating in the assignment must correspond with the name Securities Transfer Agents Medallion Program as it appears upon the fact of the within or in such other guarantee program in bond in every particular, without alteration accordance with Securities and Exchange or enlargement or any change whatever. Commission Rule 17 Ad-15. • • • 333 • • (11) The Single Bond, the provisions for assignment thereof and for approval thereof by the Secretary of the Local Government Commission to be endorsed thereon shall be in substantially the following form: (form of Single Bond) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY WATER BOND, SERIES 2001B R-1 $254,000 RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY (hereinafter called the "District"), a county water and sewer district in the State of North Carolina, acknowledges itself indebted and for value received, hereby promises to pay to [UNITED STATES OF AMERICA, ACTING BY AND THROUGH RURAL UTILITIES SERVICE, AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE], or its registered assigns, the principal sum of $254,000 on the first day of June in years and installments, as follows: Year Principal Amount Year Principal Amount Year Principal Amount 2004 $3,000 2018 $5,500 2032 $9,000 2005 3,000 2019 5,500 2033 9,000 2006 3,000 2020 6,000 2034 10,000 2007 3,000 2021 6,000 2035 11,000 2008 3,000 2022 6,000 2036 11,000 2009 3,500 2023 6,000 2037 12,000 2010 3,500 2024 6,500 2038 12,000 2011 3,500 2025 6,500 2039 12,000 2012 3,500 2026 7,000 2040 12,000 2013 4,000 2027 7,000 2041 12,000 2014 4,000 2029 7,000 2015 4,500 2029 7,000 2016 5,000 2030 8,000 2017 5,000 2031 8,500 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America, and to pay interest on the balance of said principal sum from time to time remaining unpaid, in like coin or currency, at the rate of four and eight hundred seventy-five thousandths per centum (4.875%) per annum on June I, 2002, and annually thereafter on June 1 of each year, until the principal amount hereof has been paid. Payments of the installments of principal and interest then due and payable on this bond shall be made without presentation or surrender hereof. Upon final payment of principal and interest, this bond shall be surrendered to the District for cancellation. This bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act, Chapter 159 of said General Statutes, and a bond order adopted by the Board of Commissioners of the County of Harnett, sitting as the governing body of the District, on October 21, 1996 to pay capital costs of providing water facilities for the District. The issuance of this bond and the contracting of the indebtedness evidenced thereby were approved by a majority of the qualified voters of the District voting at an election held on January 7, 1997. This bond is exchangeable at the sole expense of the District at any time, upon ninety days' notice, at the request of the registered owner hereof and upon surrender of this bond to the District, 334 for fully registered bonds, in the denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for in the resolution authorizing the issuance of the bonds. This bond may be assigned and upon such assignment the assignor shall promptly notify the District by registered mail, and the assignee shall surrender the same to the District or its designated transfer agent for transfer on the registration records, or in exchange for fully registered bonds in the • denomination of $500 each or any integral multiple thereof, in an aggregate principal amount equal to the unpaid principal amount of such single registered bond and bearing maturities corresponding to the principal installments on such single registered bond then unpaid, and every such assignee shall take this bond subject to such condition. The person in whose name this bond is registered shall be deemed the owner thereof for all purposes. So long as this bond is held or insured by the United States of America, the principal in- stallments hereof may be prepaid in whole or in part in inverse order of maturity at any time. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this bond, exist, have been performed and have happened, and that this bond is within every limitation prescribed by said Constitution or statutes. The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in accordance with its terms. IN WITNESS WHEREOF, the District has caused this bond to be signed by the Chairperson of the governing body of the District and the Clerk of the District and sealed with the corporate seal • of the District and this bond to be dated Chairperson, governing body of Riverside Water and Sewer District of Harnett County (DISTRICT) (SEAL) Clerk, Riverside Water and Sewer District of Harnett County CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within bond has been approved under the provisions of The Local Government Bond Act. Secretary of the Local Government Commission By: • Designated Assistant 33 ASSIGNMENT For value received the undersigned registered owner thereof hereby sells, assigns, and transfers unto the within bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Signature Guaranteed: Dated - NOTICE: Signature guarantee must be made NOTICE: The assignor's signature to this by guarantor institution participating in the assignment must correspond with the name Securities Transfer Agents Medallion Program as it appears upon the fact of the within or in such other guarantee program in bond in every particular, without alteration accordance with Securities and Exchange or enlargement or any change whatever. Commission Rule 17 Ad-15. (12) Actions taken or to be taken by officials of the Issuer to select paying agents, transfer agents and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E- 8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. (13) The Bonds shall be sold to the United States of America acting by and through Rural Utilities Service, an agency of the United States Department of Agriculture, at private sale without advertisement in the form of a single registered bond bearing interest at the rate of 4.75% per annum, provided that the Local Government Commission shall determine that such price is in the best interest of the Issuer. (14) The Chairperson of the governing body of the Issuer and the Clerk of the Issuer are ishereby authorized and directed to cause the Bonds to be prepared and, when they shall have been duly sold by the Local Government Commission, to execute the Bonds and to turn the Bonds over to the State Treasurer of North Carolina or to the Transfer Agent for delivery to the purchaser or purchasers to whom the Bonds may be sold by said Commission. (15) The Issuer covenants to comply with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), to the extent required to preserve the exclusion from gross income of interest on the Bonds for federal income tax purposes. (16) The Issuer hereby represents that (i) the proposed $254,000 Water Bond, Series 200113, is not a private activity bond as defined in the Code and (ii) the Issuer, together with any subordinate entities of the Issuer and any entities which issue obligations on behalf of the Issuer, reasonably expects that it will not issue and designate in the aggregate more than $10,000,000 of tax-exempt obligations (other than private activity bonds which are not qualified 501(c)(3) bonds) during the current calendar year. In addition, the Issuer hereby designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code. • (17) The power to make any election on behalf of the Issuer with respect to the arbitrage rebate provisions of the Code applicable to the Bonds is hereby delegated to the Chairperson of the governing body of the Issuer and the Clerk of the Issuer. The motion having been duly seconded, and the resolution having been considered, it was adopted by the following vote: AYES: 3 NAYS: 0