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THIRD DEFENSE <br /> Petitioner flails to state a claim for which relief can <br /> be granted. <br /> FOURTH DEFENSE <br /> 1. <br /> The Agreement referred to in- the petition is ultra vires, <br /> and without authority in law, in that said purported agreement <br /> seeks to use the credit of Orange County for the construction of <br /> capital impr vements without a bond referendum as required by law, <br /> and under North Carolina law the Town may only pledge its water and <br /> sewer rents for payment of principal and interest on bonds, <br /> whereas sai agreement purports to assign such rents. <br /> 2. <br /> s ction 6, Article VII, of the North Carolina Constitution <br /> requires a vote of the people before a debt is contracted by <br /> municipality. The purported agreement seeks to accomplish by <br /> indirection what cannot be accomplished directly in the face of <br /> this constitutional restriction, and said agreement is therefore <br /> void as contrary to law. <br /> FIFTH DEFENSE <br /> E en if the agreement referred to in the petition is not <br /> void as contrary to law, nor ultra vires , said agreement cannot <br /> reasonably be construed to require payment by the Town to the <br /> County of a l of the revenues from the furnishing of water and <br />