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<br />Authorization and Purpose
<br />The Bonds are being issued pursuant to the provisions of The Local Government Bond Act, as
<br />amended, Article 7, as amended, of Chapter 159 of the General Statutes of North Carolina, a bond
<br />order duly adopted by the Board of Commissioners of the County, and a resolution duly passed by
<br />said Board of Commissioners.
<br />Security
<br />The Bonds are general obligations of the County. The County is authorized and required by law
<br />to levy on all property taxable by the County such ad valorem taxes, without limitation as to rate or
<br />amount, as may be necessary to pay the Bonds and the interest thereon.
<br />THE REFUNDING PLAN
<br />The Bonds are being issued for the purpose of redeeming on February 1, 2011 (1) the
<br />$9,190,000 principal amount of the County's Public Improvement Bonds, Series 2001, dated August
<br />1, 2001, maturing on February 1, 2012 to 2021, inclusive (the "2001 Bonds"), and redeeming on
<br />March 1, 2013 (2) $6,525,000 principal amount of the County's Public Improvement Bonds, Series
<br />2003, dated April 1, 2003, maturing on March 1, 2015 to 2019, inclusive (the "2003 Bonds", and col-
<br />lectively, the "Bonds to be Refunded"). The following tables set forth. the years, maturity amounts
<br />and interest rates for the Bonds to be Refunded.
<br />2001 Bonds
<br />Year unt Rate Year Amount Rate
<br />2012 $920,000 4.50% 2017 $920,000 4.50%
<br />2013 920,000 4.50 2018 920,000 4.50
<br />2014 920,000 4.50 2019 920,000 4.50
<br />2015 920,000 4.50 2020 915,000 4.60
<br />2016 920,000 4.50 2021 915,000 4.70
<br />2003 Bonds
<br />Year Amount Rate Year Amount Rate
<br />2015 $1,075,000 4.00% 2018 $1,100,000 4.00%
<br />2016 1,075,000 4.00 2019 2,200,000 4.00
<br />2017 1,075,000 4.00
<br />The proceeds to be received from the sale of the Bonds, together with any contribution from
<br />the County, are sufficient to pay when due all principal of and premium and interest on the Bonds to
<br />be Refunded to and including their date of redemption and to pay certain expenses of the County
<br />related to the issuance of the Bonds. The proceeds will be held in trust by Wells Fargo Bank, Jack-
<br />sonville, Florida, (the "Escrow Agent") pursuant to an escrow deposit agreement between the County
<br />and the Escrow Agent. The Escrow Agent will purchase certain obligations of the United States of
<br />America ("Government Obligations") with the proceeds. The Government Obligations will mature
<br />at such times and in such amounts, and will bear interest payable at such times and in such
<br />amounts, so that sufficient moneys will be available to pay when due all principal of and premium
<br />and interest on the Bonds to be Refunded to and including their respective dates of redemption. The
<br />Escrow Agent will apply the maturing principal of and the interest on the Government Obligations,
<br />together with other moneys held uninvested by the Escrow Agent, for such purpose, and will trans-
<br />fer any surplus to the County for payment of interest on the Bonds. The Escrow Agent has been ir-
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