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HomeMy WebLinkAbout04251989341 South Central Water & Sewer District Special Reconvened Session, April 25, 1989 r The Harnett County Board of Commissioners, sitting as the governing body of the South Central Water & Sewer District of Harnett County, met in a special reconvened session on April 25, 1989, at 9:30 a.m., in the County Office Building, Lililngton, North Marolina, with the following members present: Bill Shaw, Mack Reid Hudson, Mayo Smith, and Chairman Lloyd G. Stewart presiding. Others present were Dallas H. Pope, County Manager; Vanessa W. Young, Clerk to the Board; and Shirley C. Wicker Recording Secretary. After the meeting was reconvened, the Chairman announced that the Board had determi at its session on April 17, 1989, that such session would be adjourned until April 25, 1989, at 9 :30 a.m., at which time the meeting would be reconvened at the Harnett County Office Building in Lillington, North Carolina. Commissioner Shaw presented the following resolution and moved that it be adopted: WHEREAS, the bond order hereinafter described has taken effect and it is desirable to make provision for the issuance of refunding bonds authorized by said bond order; and WHEREAS, the Board of Commissioners of the County of Harnett, sitting as the governing body of South Central Water and Sewer District of Harnett County, desires to sell the bonds at private sale without advertisement to Southern Bank and Trust Company (the "Bank "); and WHEREAS, there has been submitted to the Board of Commissioners of the County of Harnett, sitting as the governing body of South Central Water and Sewer District of Harnett County, a commitment from the Bank to purchase the Bonds at a purchase price equal to 100% of the principal amount thereof and at a variable rate of interest per annum equal to the prime rate of the Bank plus 0.50 %, subject to a maximum rate of 10.50% per annum: NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of Harnett, sitting as the governing body of South Central Water and Sewer District, (the "Issuer "), as follows: (1) The Issuer shall issue its refunding bond in the aggregate principal amount of $1,576,700 (the "Bond ") pursuant to and in accordance with the bond order adopted by the Board of Commissioners of the County of Harnett, sitting as the governing body of the Issuer on March 14, 1989. The Bond shall be designated "Water Refunding Bonds." (2) The Bond shall be payable in annual installments on June 1 in years and principal amounts as follows: of Year of Principal Year of Principal Maturity Amount Maturity Amount 1990 $15,400 2000 $ 71,100 1991 28,900 2001 78,500 1992 32,000 2002 86,800 1993 35,300 2003 95,900 1994 39,000 2004 105,900 1995 43,100 2005 117,100 1996 47,700 2006 129,400 1997 52,700 2007 142,900 1998 58,200 2008 158,000 1999 64,300 2009 174,500 ne d 342 (3) The Bond shall be dated the date of delivery thereof, and shall bear interest from its date until it shall mature at a variable rate per annum, equal to the Prime Rate of the Bank (as announced by the Bank from time to time) plus 0.50 %, subject to a maximum rate of 10.50 %. Such interest shall be calculated on a 365/366 days - per -yea -r basis and shall be payable semi- annually on each June 1 and December 1, commencing December 1, 1989. (4) The Bond shall be issued as a single typewritten bond registered in the name of the Bank and payable in installments. The Bond shall be signed by the Chairman of the governing body of the Issuer and the Clerk of the Issuer, the corporate seal of the Issuer shall be impressed thereon and a certificate of approval of the Local Government Commission signed by the Secretary thereof or his designated assistant shall be endorsed thereon. Interest on the Bond and each installment of principal of the Bond shall be paid to the Bank by check by the Issuer on each interest and principal payment date at the Bank's address as it appears on the bond registry books kept by the Issuer. Installments of principal of the Bond, except the final installment thereof, shall be paid without presentation of the Bond for payment. (5) Installments of principal of the Bond may be prepaid without premium in whole or in part in inverse order of the maturities thereof on any date. (6) The single Bond and the provisions for entry of payments of principal and interest with respect thereto and for approval thereof by the Secretary of the Local Government Commission or his designated assistant to be endorsed thereon shall be in substantially the form set forth in Exhibit A hereto. (7) The Bond shall be sold at a price of 100% of the principal amount thereof to the Bank at private sale without advertisement in the form of a single registered bond bearing interest at the variable rate specified above, provided that the Local Government Commission shall determine that such price is in the best interest of the Issuer. (8) The Chairman of the governing body of the Issuer is hereby authorized to accept, execute and deliver on behalf of the Issuer, or delegate such authority to an officer of the North Carolina Association of County Commissioners or the North 343 Carolina League of Municipalities, a bond purchase agreement between the Local Government Commission and the Bank providing for the sale of the Bond in accordance with the terms herein authorized. (9) The Chairman of the governing body of the Issuer, the Clerk of the Issuer, the Finance Officer of the Issuer and the Issuer's attorney are hereby authorized to take any and all such further action and to execute and deliver such other documents as may be necessary or advisable to carry out the intent of this resolution and to effect the issuance and sale of the Bond. (10) The interest on the Bond is intended and hereby determined to be includable in gross income for Federal income tax purposes. The Issuer covenants that it will not file an information return on Form 8038 -G or take any other action inconsistent with the inclusion in gross income of interest on the Bond for Federal income tax purposes. The motion having been duly seconded by commissioner Smith and the resolution having been considered, it was adopted. The vote on the adoption of the resolution was as follows: AYES: 4 NAYS: 0 EXHIBIT A (Form of Bond) Interest on this Bond is includable in gross income for Federal income tax purposes. UNITED STATES OF AMERICA STATE OF NORTH CAROLINA SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY WATER REFUNDING BOND R -1 $1,576,700 The SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY (the °Issuer "), a county water and sewer district of the State of North Carolina, acknowledges itself indebted and for value received, hereby promises to pay, to Southern Bank and Trust Company or its registered assigns (herein called the "Registered Owner"), the principal sum of $1,576,700 on the first day of June in years and installments, as follows: 344 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Principal Amount $15,400 28,900 32,000 35,300 39,000 43,100 47,700 52,700 58,200 64,300 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Principal Amount $ 71,100 78,500 86,800 95,900 105,900 117,100 129,400 142,900 158,000 174,500 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America, and to pay, interest on the balance of said principal sum from time to time remaining unpaid, in like coin or currency, at a variable rate per annum equal to the Prime Rate of Southern Bank and Trust Company (as announced by the Bank from time to time) plus 0.50 %, subject to a maximum rate of 10.50 %. Such interest shall be calculated on a 365/366 days - per -year basis and shall be payable on December 1, 1989, and semi - annually thereafter on June 1 and December 1 of each year, until the principal amount hereof has been paid. Payments of the installments of principal and interest then due and payable on this Bond without presentation or surrender hereof shall be made by check to the Registered Owner at its address as it appears on the bond registry kept by the Issuer as Bond Registrar. Upon receipt of said payments of principal and interest, written notice of the receipt thereof shall be given promptly to the Issuer and the Issuer shall be fully discharged of the obligation on this Bond to the extent of the payment so made. Upon final payment of principal and interest this Bond shall be surrendered to the Issuer for cancellation. This Bond is issued pursuant to The Local Government Finance Act, Chapter 159 of the General Statutes of North Carolina, and a bond order adopted by the Board of Commissioners of the County of Harnett, sitting as the governing body of the Issuer on March 14, 1989 to provide funds to refund the Issuer's outstanding Water Bonds, dated June 13, 1988. This Bond may be assigned and upon such assignment the assignor shall promptly notify the Issuer by registered mail, and the assignee shall surrender the same to the Issuer for transfer on the bond registry kept by the Issuer, and every 345 such assignee shall take this Bond subject to such condition. Principal installments hereof may be prepaid without premium in whole or in part in inverse order of the maturities thereof on any date. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that this Bond is within every limitation prescribed by said Constitution or statutes. The faith and credit of the Issuer are hereby pledged to the punctual payment of the principal of and interest on this Bond in accordance with its terms. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed by the Chairman of the governing body of the Issuer and the Clerk of the Issuer and sealed with the corporate seal of the Issuer and this Bond to be dated May _, 1989. (DISTRICT) (SEAL) Chairman, governing body of South Central Water and Sewer District of Harnett County, North Carolina Clerk, South Central Water and Sewer District of Harnett County, North Carolina CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within Bond has been approved under the provisions of The Local Government Bond Act. JOHN D. FOUST Secretary of the Local Government Commission By: Designated Assistant 346 Due Date PAYMENT RECORD Principal Principal Balance Payment Due June 1, 1990 $ 15,400 June 1, 1991 28,900 June 1, 1992 32,000 June 1, 1993 35,300 June 1, 1994 39,000 June 1, 1995 43,100 June 1, 1996 47,700 June 1, 1997 52,700 June 1, 1998 58,200 June 1, 1999 64,300 June 1, 2000 71,100 June 1, 2001 78,500 June 1, 2002 86,800 June 1, 2003 95,900. June 1, 2004 105,900 June 1, 2005 117,100 June 1, 2006 129,400 June 1, 2007 142,900 June 1, 2008 158,000 June 1, 2009 174,500 ADJOURNMENT Date Paid Name of Bank Officer There being no further business, the Harnett County Board of Commissioners, sitting as the governing body of the South Central Water & Sewer District of Harnett County, duly adjourned at 9:54 a.m., April 25, 1989. Stewart, Chairman Ca, : W� 'ga" ) Shirley C. icker, Recording Secretary. Vanessa W. Young, Cler, to th Board