Orange County NC Website
Browse       Search
The provisions of this Article shall be subject to rights to <br /> inspect the Leased Property granted to parties under the <br /> Installment Purchase Contract and to the right hereby reserved to <br /> the County to inspect the Leased Property at any reasonable time. <br /> 5. 2 Purchase Option. The Board of Education shall have the <br /> option to purchase the Leased Property, in whole but not in part, <br /> at the end of the Lease Term upon payment by the County of all of <br /> the Installment Payments and upon payment to the County of a <br /> purchase option price of $100. The Board of Education shall notify <br /> the County of its exercising of this option within fifteen (15) <br /> days after the end of the Lease Term, and within forty-five (45) <br /> days thereafter the County shall execute and deliver all necessary <br /> documents conveying to the Board of Education good and marketable <br /> title to the Leased Property, subject only to (a) Permitted <br /> Encumbrances and (b) any encumbrance or imperfection caused by or <br /> attributable to the Board of Education. <br /> ARTICLE VI <br /> CONSIDERATION FOR LEASE <br /> 6 . 1 Use as School; Assumption of Obligations. In partial <br /> consideration for its acquisition of rights to use the Leased <br /> Property during the Lease Term and its option to purchase the <br /> Leased Property, the Board of Education hereby agrees to use the <br /> Leased Property for public school purposes in fulfillment of its <br /> obligation, shared by the County, to provide for elementary and <br /> secondary education in the County. In addition, in consideration <br /> of its rights under this Lease, the Board of Education undertakes <br /> the obligations imposed on it hereunder, including those imposed by <br /> Section 8. 1. <br /> 6. 2 Payments. In partial consideration for its acquisition <br /> of rights to use the Leased Property during the Lease Term and its <br /> option to purchase the Leased Property, the Board of Education <br /> hereby agrees to pay to the County annual rent in the amount of <br /> $100 payable in advance on the Closing Date (receipt of which is <br /> hereby acknowledged) and on the first day of each Lease Year <br /> thereafter. The County and the Board of Education acknowledge <br /> their understanding that, although the County's financing of the <br /> Leased Property and providing of the Leased Property to the Board <br /> of Education for its use, is of substantial value to the Board of <br /> Education, any payment by the Board of Education of a market value <br /> rent would represent simply an accounting transaction, because the <br /> Board of Education's funding for such purpose would be primarily <br /> provided through the County. <br /> BWNY/133845.2/15880/00013/1537 December 14, 1994 5 <br />