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r <br /> NationsBank, N.A.(Carolinas Tel 919 918-4245 <br /> Commercial Banking Group Fax 919 967-3881 6 <br /> P. O. Box 570 <br /> Chapel Hill, NC 27514-0570 <br /> NationsBank <br /> November 6, 1995 <br /> r^ <br /> Mr. Ken Chavious <br /> Finance Officer <br /> Orange County Finance Office <br /> P.O. Box 8181 <br /> Hillsborough, NC 27278 <br /> Dear Mr. Chavious: <br /> NationsBank is pleased to have the opportunity to bid on Orange County's <br /> Proposed Installment Purchase Financing request. Enclosed please find our <br /> commitment letter and related attachments. <br /> The commitment letter presents two options featuring a 10 and a 15 year <br /> amortization, each fully funded. Orange County will be able to draw the full <br /> loan amount at closing. The funds can then be housed in an escrow account <br /> and withdrawn as needed for construction. <br /> ' With each option, NationsBank would establish an escrow account for <br /> investment of the excess funds over the construction period. There are two <br /> options for this account. First, the funds could be placed in a Public <br /> Investment Account, which currently bears an interest rate of 2.36% with a <br /> yield of 2.39%. This option would allow Orange County immediate access to <br /> the funds at any time. Additionally, NationsBank will secure these deposits <br /> with U.S. Treasuries. <br /> The second option would be to invest the funds in Orange County's existing <br /> r 14-day Time Open Account, which currently bears an interest rate of 5.60%. <br /> Orange County would have access to the funds at any time given 30 days <br /> notice. NationsBank could accommodate any withdrawal schedule that <br /> Orange County might have, given appropriate notice. The Time Open <br /> Account will also be secured by U.S. Treasuries. <br /> USA <br /> t OM <br /> Official Sponsor <br /> 1994/19% Member FDIC <br />