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61 <br />CENTRAL CAROLINA HANK <br />December 12, 1990 <br />Mr. John W. Forrest <br />Hillsborough, N. C. <br />Dear John: <br />As we have discussed, in order to qualify for a tax - exempt loan the <br />following criteria must be met: <br />1) The political subdivision involved (Orange County) must certify <br />two things: <br />a) that the VFD is a "qualified" VFD within the jurisdiction of <br />the political subdivision, meaning that: <br />* the VFD provides fire fighting services in an area which <br />is not provided other fire fighting services AND <br />* the fire fighting services are required by written agreement <br />with the political subdivision; <br />AND <br />b) they approve of the borrowing. This approval cannot be given until <br />a public hearing is held. <br />2) The VFD must certify that more than 90% of the loan proceeds are <br />to be used for the acquisition of the fire truck. <br />ADDITIONAL DOCUMENTATION REQUIRED <br />1. A copy of the VFD's articles of incorporation. <br />2. A certificate of good standing from the Secretary of State. <br />3. A letter from the political subdivision certifying that the info <br />in Part 1 at the top of this letter is correct. <br />4. a Certification of Use of Funds (Copy attached.) <br />S. An Agreement (Copy Attached). <br />6. A letter pertaining to being a qualified small issuer (copy attached). <br />In addition to the above, I would of course need the usual loan info such <br />as source of repayment, cost of truck, description, etc. If the VFD <br />qualifies for this type of loan, which I would certainly expect it would, we <br />would be looking at an interest rate of approximately 7.76 %, depending on <br />the term. I understand the amount of the loan would be around $120,000. <br />If your board elects to pursue a loan request with Central Carolina Bank, <br />I would be most happy to work with the persons designated. <br />V�ly yours, <br />Paul R. Williams <br />Vice -- President <br />Post Office Box 250, Hillsborough, North Carolina 27278, 919/732 -2176 <br />