HomeMy WebLinkAboutC.054.93009_1583 (2)REQUEST FOR APPROVAL OF RESOLUTION/ DOCUMENTS PROVIDING FOR THE
ISSUANCE OF $22,180,000 IN GENERAL OBLIGATION SCHOOL BONDS (SERIES
1997): Attorney Pope summarized the submitted bond documents in
conjunction with the bond referendum approved by county voters on
May 7, 1996. Pope explained that the bonds were of the general
obligation type which means that the full faith, credit and taxing
power of the County would be pledged to secure the bonds. The
bonds will mature annually on February 1, starting in 1999 and will
have $1,200,000 maturing every February 1 from 1999 through 2016
and one final payment on February 1, 2017, of $580,000. The Local
Government Commission will determine the interest rate on the day
the bonds are sold. It is anticipated the bonds will be issued in
$5,000 denominations, and they will be in high demand. Mr. Pope
went on to say that the staff and chairman recently went to New
York in an attempt to improve the county's credit rating. The rate
was improved, and it is estimated that a substantial amount of
money has been saved by this effort.
Commissioner Boone pointed out that the bonds can be redeemed
(whatever is outstanding) after the year 2008. There is, however,
a slight penalty if this occurs. Pope said this information was
correct.
MOTION by commissioner Stewart to introduce the following
resolution:
RESOLUTION PROVIDING FOR THE ISSUANCE OF
$22,180,000 GENERAL OBLIGATION SCHOOL BONDS,
SERIES 1997
BE IT RESOLVED by the Board of Commissioners for the County of Iredell:
SECTION 1. The Board of Commissioners has determined and does hereby find and declare:
(a) That an order authorizing not exceeding $22,180,000 School Bonds was adopted by the Board of Commissioners
for the County of Iredell on March 5,1996, which order was approved by the vote of a majority of the qualified voters of said
County at a referendum duly called and held on May 7, 1996.
(b) That none of said bonds have heretofore been issued, that no notes have been issued in anticipation of the receipt
of the proceeds of the sale of said bonds, and that it is necessary to issue all of said bonds at this time.
(c) That the maximum period of usefulness of the improvements to be undertaken with the proceeds of said bonds to
be Issued Is estimated as a period of not less than 30 years from August 1, 1997, the date of said bonds to be Issued as
hereinafter provided, and that such period expires on August 1, 2027.
SECTION 2. Pursuant to said order, there shall be issued bonds of the County of Iredell, North Carolina (the "Issuer')
In the aggregate principal amount of $22,180,000, designated 'General Obligation School Bonds, Series 1997; and dated
August 1, 1997 (the "Bonds"), The Bonds shall be stated to mature (subject to the right of prior redemption as hereinafter
set forth) annually, February I, $1,200,000 1999 to 2016, inclusive, and $560,000 for 2017, and shall bear interest at a rate
or rates to be determined by the Loral Government Commission of North Carolina at the time the Bonds are sold, which
Interest to the respective maturities thereof shall be payable on February 1, 1998 and semiannually thereafter on February
1 and August 1 of each year until payment of such principal sum.
Each Bond shall bear Interest from the interest payment date next preceding the date on which it Is authenticated unless
it is (a) authenticated upon an interest payment date in which event it shall bear interest from such interest payment date
or (b) authenticated prior to the first Interest payment date in which event It shall bear Interest from its date; provided,
however, that if at the time of authentication interest Is In default, such Bond shall bear interest from the date to which
interest has been paid.
The principal of and the interest and any redemption premium on the Bonds shall be payable in any coin or currency
of the United States of America which is legal lender for the payment of public and private debts on the respective dates
of payment thereof.
The Bonds will be Issued by means of a book -entry system with no physical distribution of Bond certificates to be made
except as hereinafter provided. One fully -registered Bond certificate for each stated maturity of the Bonds, registered in
the name of Cede & Co., the nominee of The Depository Trust Company, New York, New York ('DTC"), will be issued and
required to be deposited with DTC and Immobilized in its custody. The book -entry system will evidence beneficial
ownership of the Bonds In the pdndpal amount of $5,000 or any multiple thereof, with transfers of beneficial ownership
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