HomeMy WebLinkAboutC.054.93011_0433 (2)(f) the Grantor shall have delivered to the Trustee and the Beneficiary an opinion of counsel
experienced in the law relating to the taxation of the interest on state and local government
securities to the effect that the release of such portion of the Land will not cause the interest
component of the Installment Payments to be includable in gross income for purposes of federal
income taxation and will not have an adverse effect on the exemption of the interest component
of the Installment Payments from State of North Carolina income taxes.
Notwithstanding the foregoing, the Trustee shall release a parcel or interest of land constituting
part of the Trust Estate if directed to do so by the Beneficiary in writing even if the foregoing
conditions have not been met.
ARTICLE III
RIGHTS AND REMEDIES OF THE BENEFICIARY
3.1 Events of Default. The following events shall constitute an "Event of Default" under this
Deed of Trust:
(a) an Event of Default under the Agreement which is not cured within the applicable grace
period, if any; or
(b) failure by the County to observe and perform any warranty, covenant, condition or
agreement on the part of the County under this Deed of Trust for a period of thirty (30) days after
written notice specifying such failure and requesting that it be remedied is given to the County
by the Beneficiary unless the Beneficiary shall consent in writing to an extension of such time
prior to its expiration, such consent not to be unreasonably withheld by the Beneficiary; or
(c) any lien, charge or encumbrance prior to or affecting the validity of this Deed of Trust is
found to exist, other than Permitted Encumbrances, and such lien, charge or encumbrance is not
extinguished or subordinated to the Deed of Trust within a period of thirty (30) days after written
notice requesting that it be extinguished or subordinated is given to the County by the
Beneficiary, unless the Beneficiary shall consent in writing to an extension of such time prior to
its expiration, such consent not to be unreasonably withheld by the Beneficiary.
3.2 Acceleration of Obligations of the County. Upon the occurrence of an Event of Default,
all payments under the Agreement shall, at the option of the Beneficiary, become at once due and
payable regardless of the maturity date or other due date hereof. Neither the advance of funds by
the Beneficiary under any of the terms and provisions hereof nor the failure of the Beneficiary to
exercise promptly any right to declare the payment due under the Agreement due under any of
the foregoing conditions shall operate as a waiver of the Beneficiary's right to exercise such
option thereafter as to any past or current default, unless such Event of Default is waived in
writing by the Beneficiary.
3.3 Remedies of the Beneficiary upon an Event of Default.
(a) If the County's obligations have been accelerated under the Agreement as provided in
Section 3.2 hereof, the Beneficiary may foreclose the lien of this Deed of Trust pursuant to the
power of sale hereby granted or by judicial proceeding. The Trustee is hereby granted a power
of sale and may sell the Land or such part or parts thereof or interests therein as the Beneficiary
may select after first having given such notice of hearing as to commencement of foreclosure
proceedings and obtained such findings or leave of court as then may be required by law and
then having given such notice and advertised the time and place of such sale in such manner as
then may be provided by law, and upon such sale and any resale and upon compliance with the
law then relating to foreclosure proceedings, to convey title to the purchaser.
(b) The Trustee may proceed against the Fixtures as provided in and in accordance with the
applicable provisions of the Uniform Commercial Code as adopted by the State of North
Carolina.
(c) In the event of any sale hereunder, the Beneficiary shall have the right, to the extent
permitted by law, to bid at it and to become the purchaser and in lieu of paying cash therefor may
make settlement for the purchase price by crediting against the outstanding amount due, the
proceeds of the sale, net of sales expenses. The Trustee may require the successful bidder at any
sale to deposit immediately with the Trustee cash or a certified check in an amount not to exceed
five percent (5%) of his bid, provided notice of such requirement is contained in the
advertisement of the sale. The bid may be rejected if the deposit is not immediately made and
thereupon the next highest bidder may be declared to be the purchaser. Such deposit shall be