Orange County NC Website
Browse       Search
50 <br /> Conveyance of notices and other communications by DTC to Direct Participants,by Direct Par- <br /> ticipants to Indirect Participants and by Direct and Indirect Participants to Beneficial Owners will <br /> be governed by arrangements among them, subject to any statutory or regulatory requirements as <br /> may be in effect from time to time.Beneficial Owners of the Bonds may wish to take certain steps to <br /> augment transmission to them of notices of significant events with respect to the Bonds, such as <br /> prepayments,tenders,defaults and proposed amendments to the security documents. <br /> Neither DTC nor Cede & Co. will consent or vote with respect to the Bonds. Under its usual <br /> procedures, DTC mails an Omnibus Proxy to the County as soon as possible after the record date. <br /> The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to <br /> whose accounts the Bonds are credited on the record date(identified in a listing attached to the Om- <br /> nibus Proxy). <br /> Principal and interest payments on the Bonds will be made to Cede &Co. or such other nomi- <br /> nee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct <br /> Participants' accounts upon DTC's receipt of funds and corresponding detail information from the <br /> County on each payable date in accordance with their respective holdings shown on DTC's records. <br /> Payments by Direct and Indirect Participants to Beneficial Owners will be governed by standing in- <br /> structions and customary practices, as is the case with securities held for the accounts of customers <br /> in bearer form or registered in"street name,"and will be the responsibility of such Direct and Indi- <br /> rect Participants and not of DTC or the County, subject to any statutory or regulatory requirements <br /> as may be in effect from time to time.Payment of principal and interest to DTC is the responsibility <br /> of the County, disbursement of such payments to Direct Participants will be the responsibility of <br /> DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of the <br /> Direct and Indirect Participants. <br /> DTC may discontinue providing its service as securities depository with respect to the Bonds at <br /> any time by giving reasonable notice to the County. Under such circumstances, or in the event the <br /> County desires to use a similar book.-entry system with another securities depository, there may be a <br /> successor securities depository (all references to DTC include any such successor). The County may <br /> also decide to discontinue participation in the system of book-entry transfer through DTC(or a suc- <br /> cessor securities depository) at any time by giving reasonable notice to DTC. If the book-entry sys- <br /> tem is discontinued and there is no successor securities depository, Bond certificates will be printed <br /> and delivered to the Beneficial Owners. <br /> The information in this section concerning DTC and DTC's book-entry has been obtained from <br /> DTC, and the County takes no responsibility for the accuracy thereof. <br /> The County cannot and does not give any assurances that DTC,Direct Participants or Indirect <br /> Participants will distribute to the Beneficial Owners of the Bonds (a) payments of principal, pre- <br /> mium, if any,or interest on the Bonds, (b)confirmations of their ownership interests in the Bonds or <br /> (c) prepayment or other notices sent to DTC or Cede & Co., its partnership nominee, as the regis- <br /> tered owner of the Bonds, or that they will do so on a timely basis or that DTC, Direct Participants <br /> or Indirect Participants will serve and act in the manner described in this Official Statement. <br /> THE COUNTY WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO THE <br /> DIRECT PARTICIPANTS, INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS WITH <br /> RESPECT TO (1)THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT <br /> PARTICIPANT OR INDIRECT PARTICIPANT, (2) THE PAYMENT BY DTC OR ANY DIRECT <br /> PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL <br /> OWNER IN RESPECT OF THE PRINCIPAL AMOUNT OF OR PREPAYMENT PRICE OR <br /> INTEREST ON THE BONDS; (3) THE DELIVERY BY DTC OR ANY DIRECT PARTICIPANT OR <br /> INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS <br /> REQUIRED OR PERMITTED TO BE GIVEN TO OWNERS UNDER THE TERMS OF THE BOND <br /> ORDER AND RESOLUTION; (4) THE SELECTION OF THE BENEFICIAL OWNERS TO <br /> RECEIVE PAYMENT IN THE EVENT OF ANY REDEMPTION OF THE BONDS; OR (6) ANY <br /> CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS OWNER. <br /> F-2 <br />