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OTHER CONDITIONS: The loan documents shall include a non- <br /> appropriation clause, and a "no deficiency <br /> judgment" provision. <br /> This financing commitment is made under <br /> provisions of North Carolina General Statute 160A- <br /> 20, and is subject to approval by the Local <br /> Government Commission. <br /> This financing commitment is contingent upon the <br /> Town of Carrboro's qualification as a small issuer <br /> pursuant to IRS Section 265 (b)(3). If the Town of <br /> Carrboro should issue more than $10,000,000.00 in <br /> tax-exempt obligations during the calendat year <br /> 1998, the Bank will adjust its interest rate on this <br /> credit facility to the extent necessary to produce the <br /> same yield to the Bank using the 100% TEFRA <br /> Disallowance Rate as required if The Town of <br /> Carrboro is classified as a "large issuer". <br /> Should Standard & Poors or Moody's downgrade <br /> any of Orange County's debt by two grades or more <br /> from its current rating, NationsBank will have the <br /> right to adjust its interest rate on this credit <br /> facility. Further, if any recognized rating agency <br /> downgrades any of Orange County's long term debt <br /> to below an investment grade rating, then it will be <br /> an event of default. <br /> The Bank will engage its'counsel to prepare loan <br /> documents, including all documents required to <br /> perfect the Bank's real estate lien. All the Bank's <br /> legal expenses associated with closing this facility <br /> will be paid by the Borrower. <br /> The facility will close by December 19, 1997. <br /> The interest rate indicated herein, if accepted in <br /> writing by the deadline, will be guaranteed until <br /> December 19, 1997. <br />