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<br />appropriation from the proposed budget for that fiscal year. Such resolution shall state the <br />reasons for such deletion, shall be adopted by a vote identifying those voting for and against <br />and abstaining from the resolution, and shall be recorded. in the minutes of the Governing <br />Body. A copy of such resolution shall be promptly sent to the Bank. Such failure to <br />appropriate shall constitute an Event of Default. <br />(c) The Budget Officer shall deliver to the Bank, within (15) days after the <br />beginning of each Fiscal Year, a certificate stating whether an amount equal to the <br />Installment payments and estimated Additional Payments coming due during the next Fiscal <br />Year has been appropriated by the County in such budget for such purposes. If such amount <br />has not been so appropriated, the Budget Officer shall send a copy of such certificate to the <br />LGC, to the attention of its Secretary, at the Albermarle Building, 325 North Salisbury St., <br />Raleigh, NC 27603-1385. <br />SECTION 6. SECURITY INTEREST; LIENS <br />6.1. Security Interest. The County hereby grants to the Bank a security interest <br />in the Equipment and in any and all additions, accessions, repairs, replacements, <br />substitutions, and modifications to the Equipment, and all .proceeds of all the foregoing, <br />including any insurance proceeds paid because. of loss or damage to the Equipment to the <br />extent necessary to secure the County's payment obligations to the Bank under this <br />Contract. The County shall cause to be filed, at the County's expense, financing <br />statements and other related documents that are necessary under Article 9 of Chapter 25 <br />(the "Uniform Commercial Code -Secured Transactions") of the General Statutes of <br />North Carolina to perfect a first lien security interest by filing and to maintain that first <br />lien security interest in perfected form. If the Equipment is or includes one or more <br />motor vehicles, the ownership of which is or are evidenced by a certificate of title(s), the <br />County shall cause the Bank's lien to be properly shown on such title(s) as a first lien <br />security interest. <br />The Equipment is and shall throughout the term of this Contract be and remain <br />personal property, regardless of whether the Equipment is now or may become in any <br />manner affixed or attached to real estate or any building or fixtures on real estate. No <br />portion of the Equipment maybe affixed or attached to real estate or any building or fixtures <br />on real estate. If the. Equipment is permanently located on any real estate, not owned in fee <br />simple by the County, or if such real estate, is subject to any liens, the County shall obtain a <br />waiver of any rights in and to the Equipment (including the rights of levy and distraint) from <br />the person who gives the County permission to use the real property on which the <br />Equipment is located and from any holder of liens on the real estate on which the Equipment <br />is located. <br />6.2. Liens. The County shall not directly or indirectly create, incur, assume or <br />suffer to exist any lien, charge, security interest, encumbrance or claim on or with respect <br />to the Equipment (except the security interest granted to the Bank). The County shall <br />promptly, at its own expense, take such action as maybe necessary to duly discharge any <br />such lien,. security interest, charge, encumbrance or claim if the same shall arise at any <br />7 <br />