Agenda - 12-01-1997 - 7a - Laserfiche WebLink

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I 6 INSURANCE: Borrower will obtain and maintain such insurance as the Bank may reasonably require and also exhibit or deliver such policy to the Bank and provide appropriate loss payable clauses in the insurance policy in favor of the Bank. SECURITY: A second security interest in the land and building and improvements located at 501 & 503 West Franklin St., Chapel Hill, N.C. and as described in the Orange County Installment Financing Proposal dated June 14, 1996. CONDITIONS TO FIRST ADVANCE: Prior to advancing proceeds for this loan, the following precedent conditions shall have occurred: The Bank shall have received, duly executed, all promissory notes, loan agreements, deeds of trust, security agreements, financing statements, borrowing authorization documents and resolutions, and other documents necessary or advisable in connection with the loan, all of which shall be in form and substance satisfactory to Orange County, and to the Bank and its counsel. A complete legal description of the collateral will be sent to the Bank, if this commitment is accepted. It should also be noted that the Bank will not require a new survey, appraisal, or environmental report. Borrower shall provide to the Bank such opinions of legal counsel satisfactory to the Bank as the Bank may request, including but not limited to an opinion of legal counsel to the Borrower that the transaction is authorized under Section 160A-20 of the North Carolina General Statutes, that interest on the Note is excludable from the gross income of the Bank under state and federal law, and that the Note meets the requirements of a "qualified tax- exempt obligation" under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Borrower shall provide to the Bank a copy of the estimates for the renovation of the subject property.