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<br /> Authorization and Purpose
<br /> The Bonds are being issued pursuant to the provisions of The Local Government Bond Act, as
<br /> amended, Article 7, as amended, of Chapter 159 of the General Statutes of North Carolina, a bond
<br /> order duly adopted by the Board of Commissioners of the County, and a resolution duly passed by
<br /> said Board of Commissioners.
<br /> Security
<br /> The Bonds are general obligations of the County.The County is authorized and required by law
<br /> to levy on all property taxable by the County such ad valorem taxes,without limitation as to rate or
<br /> amount,as may be necessary to pay the Bonds and the interest thereon.
<br /> THE REFUNDING PLAN
<br /> The Bonds are being issued for the purpose of redeeming on February 1, 2011 (1) the
<br /> $9,190,000 principal amount of the County's Public Improvement Bonds, Series 2001, dated August
<br /> 1, 2001, maturing on February 1, 2012 to 2021, inclusive (the "2001 Bonds"), and redeeming on
<br /> March 1, 2013 (2) $6,525,000 principal amount of the County's Public Improvement Bonds, Series
<br /> 2003, dated April 1, 2003, maturing on March 1, 2015 to 2019,inclusive(the"2003 Bonds", and col-
<br /> lectively, the "Bonds to be Refunded"). The following tables set forth the years, maturity amounts
<br /> and interest rates for the Bonds to be Refunded.
<br /> 2001 Bonds
<br /> Year A=unt ate Yrar Amount Rate
<br /> 2012 $920,000 4.50% 2017 $920,000 4.50%
<br /> 2013 920,000 4.50 2018 920,000 4.50
<br /> 2014 920,000 4.60 2019 920,000 4.50
<br /> 2015 920,000 4.50 2020 915,000 4.60
<br /> 2016 920,000 4.50 2021 915,000 4.70
<br /> 2008 Bonds
<br /> Year Amount Rats Year Amount Rate
<br /> 2015 $1,075,000 4.00% 2018 $1,100,000 4.00%
<br /> 2016 1,075,000 4.00 2019 2,200,000 4.00
<br /> 2017 1,075,000 4.00
<br /> The proceeds to be received from the sale of the Bonds, together with any contribution from
<br /> the County,are sufficient to pay when due all principal of and premium and interest on the Bonds to
<br /> be Refunded to and including their date of redemption and to pay certain expenses of the County
<br /> related to the issuance of the Bonds. The proceeds will be held in trust by Wells Fargo Bank,Jack-
<br /> sonville,Florida,(the"Escrow Agent")pursuant to an escrow deposit agreement between the County
<br /> and the Escrow Agent. The Escrow Agent will purchase certain obligations of the United States of
<br /> America ("Government Obligations")with the proceeds. The Government Obligations will mature
<br /> at such times and in such amounts, and will bear interest payable at such times and in such
<br /> amounts, so that sufficient moneys will be available to pay when due all principal of and premium
<br /> and interest on the Bonds to be Refunded to and including their respective dates of redemption. The
<br /> Escrow Agent will apply the maturing principal of and the interest on the Government Obligations,
<br /> together with other moneys held uninvested by the Escrow Agent, for such purpose, and will trans-
<br /> fer any surplus to the County for payment of interest on the Bonds. The Escrow Agent has been ir-
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