Orange County NC Website
Resolution Modifying Auorovals for Skills Development Center Financing <br />WHEREAS: <br />The Board of Commissioners of Orange County, North Carolina (the "County"), adopted <br />a resolution on December 1, 1997, approving terms and documents related to the County's plans <br />for financing renovations to the County's "Skills Development Center." <br />NationsBank, N.A., has made a revised proposal to the County to provide financing for <br />the project in the amount of $780,000 at an annual interest rate of 5.05%. <br />The resolution of December 1 qualified the County's financing payments for a particular <br />treatment under the federal income tax laws that is favorable to the lender. Under the applicable <br />income tax laws, qualification for this particular favorable treatment must be obtained for a <br />particular calendar year. Because the financing will now be completed in 1998, instead of 1997 <br />as originally contemplated, the Board must take additional action to qualify the financing <br />payments for the desirable tax treatment. <br />BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange <br />County, North Carolina, as follows: <br />1. The County hereby accepts NationsBank's proposal to provide financing for the <br />project in an amount not to exceed $780,000, with a nominal annual interest rate (in the absence <br />of default or change in tax status) not to exceed 5.05%. <br />2. The County hereby designates its Obligations, as defined in the resolution of <br />December 1, as "qualified tax-exempt obligations" for the purpose of Internal Revenue Code <br />Section 265(b)(3). The County represents and covenants as follows: <br />(a) The County will in no event designate more than $10,000,000 of <br />obligations as qualified tax-exempt obligations in 1998, including the Obligations, for the <br />purpose of such Section 265(b)(3); <br />(b) Barring circumstances unforeseen as of the date of delivery of the <br />Modification Agreement approved by the resolution of December 1, the County will not issue <br />tax-exempt obligations itself or approve the issuance of tax-exempt obligations of any <br />"subordinate entities," within the meaning of Code Section 265(b)(3), and all entities which <br />issue tax-exempt obligations on behalf of the County and its subordinate entities, if the <br />issuance of such tax-exempt obligations would, when aggregated with all other tax-exempt <br />obligations theretofore issued in 1998 by the County and such other entities, result in the <br />County and such other entities having issued a total of more than $10,000,000 of tax-exempt <br />