HomeMy WebLinkAboutC.054.93009_1221 (2)392
geared more towards a work/restitution program.
MOTION by Chairman Haire to authorize the staff to submit an
application to the Criminal Justice office.
VOTING: Ayes - 5; Nays - 0.
REQUEST FOR APPROVAL OF RESOLUTION AUTHORISING THE EXECUTION
OF DOCUMENTS NECESSARY FOR REFINANCING OF LOAN WITH FIRST UNION
NATIONAL BANK: Bill Pope, County Attorney, mentioned that
municipalities and counties were not allowed to enter into debt
without a vote of the people except in a few circumstances. One
instance is installment purchasing financing. The acquisition and
upfitting of the Kewaunee Building for usage by the health and
mental offices was financed under this limited exception. There is
an opportunity now to refinance. The contract imposes upon the
County certain obligations: (1) Give to First Union National Bank
a Deed of Trust (2) Keep building in good state of repair (3) Keep
building insured (4) Make Payments and (5) Allow bank to inspect
premises if needed. The bank has the right to foreclose if any of
the obligations are not met.
MOTION by Commissioner Stewart to approve the following
resolution:
RESOLUTION AUTHORIZING THE EXECUTION OF AN INSTALLMENT FINANCING
CONTRACT WITH FIRST UNION NATIONAL BANK OF NORTH CAROLINA AND
AUTHORIZING TEE EXECUTION OF RELATED DOCUMENTS
Whereas, the County of Iredell, North Carolina (the "County") desires to
enter into an Installment Financing Contract, dated as of April 10, 1996, (the
"Contract"), between the County and First Union National Bank of North Carolina
(the "Bank"), execute a Deed of Trust and Security Agreement, dated as of April
10, 1996 (the "deed of Trust") to Lynn M. Beckham, as deed of trust trustee, for
the benefit of the Bank, and execute a Commitment Letter, dated April 10, 1996
(the "Commitment Letter"), with the Bank; and
Whereas, the Contract provides for (a) the Bank to advance certain funds
(the "Amount Advanced") to enable the County to refinance its obligations under
an Installment Purchase Contract, dated as of December 20, 1991 (the "Prior
Contract") among the County, the Bank and First Union National Bank of North
Carolina, Corporate Trust Department, as Escrow Agent, in order to achieve debt
service savings, and (b) the County to repay the Amount Advanced in installments
(the "Installment Payments"), as provided in the Contract; and
WHEREAS, the County has determined that the use of the Facilities (as
defined in the Contract) is essential to its proper, efficient and economic
operation; that it anticipates an ongoing need for the Real Property as defined
in the Contract) and the Facilities; that the Real Property and the Facilities
will provide an essential use and permit the County to carry out public functions
that it is authorized by law to perform; and that entering into the Contract and
executing the Deed of Trust is necessary and expedient for the County; and
WHEREAS, the County has further determined that the Installment Payments and
all other obligations of the County under the Contract and the Deed of Trust are
not excessive for their stated purposes; and
WHEREAS, the County has determined that the Contract, the Deed of Trust and
the obligations of the County thereunder are preferable to, and more cost
efficient than, a general obligation or revenue bond issue for the same purpose
and that the cost of refinancing its obligations under the Prior Contract exceeds
the amount that can be prudently raised from currently available appropriations,
unappropriated fund balances and nonvoted bonds that could be issued by the
County in the current fiscal year pursuant to Article V, Section 4 of the
Constitution of the State of North Carolina; and
WHEREAS, the debt management policies of the County have been carried out
in strict compliance with law; NOW, THEREFORE,
BE IT RESOLVED by the Board of Commissioners for the County of Iredell:
Section 1. The Contract, the Deed of Trust and the Commitment Letter axe
hereby approved, subject to the approval of the Contract by the Local Government
Commission of 'North Carolina as provided by law.
Section 2. The officers of the County, jointly and severally, be and axe
hereby, authorized, empowered and directed to execute on its behalf the
Commitment Letter, the Contract, the Deed of Trust and any addenda, exhibits,