Agenda - 04-07-20; 8-h - Adoption of the Final Resolution Authorizing the Issuance of Approx. $40,000,000 in Installment Purchase Financing for CIP Projects

Browse Search

56 to the extent payable from Bond proceeds, investment earnings, Net Proceeds related to casualty or condemnation proceeds, or amounts derived from the enforcement of remedies on default. As security for the 2020 Bonds, the Prior Bonds and any additional bonds issued under the Trust Agreement on a parity therewith(the"Additional Bonds"and,together with the 2020 Bonds and the Prior Bonds, the "Bonds"), the County has executed and delivered to a deed of trust trustee (the "Deed of Trust Trustee"), for the benefit of the Trustee, a Deed of Trust dated as of June 1, 2018 (as previously supplemented and amended, the "Existing Deed of Trust"), granting a lien of record on the site of the County's Government Services Annex located in Hillsborough,North Carolina(the"Government Services Annex"), the County's Meadowlands Emergency Operations Center located in Hillsborough, North Carolina(the"Emergency Operations Center"),land owned by the County in Hillsborough,North Carolina, which will be the site of the County's Northern Campus(the"Northern Campus"),the County's Link Center (the"Link Center"),the County District Attorney's office building(the"District Attorney's Building"),the site of the County's Southern Campus (the"Southern Campus"), and the real estate improvements thereon and appurtenances thereto, all as more particularly described in the Existing Deed of Trust (collectively, the"Mortgaged Property"), subject only to Permitted Encumbrances(as defined in Appendix C hereto). As security for the Bonds and in connection with the issuance of the 2020 Bonds,the County will execute and deliver to the Deed of Trust Trustee,for the benefit of the Trustee,a Deed of Trust Supplement #3 dated as of May 1, 2020 (the "Third Deed of Trust Supplement"), supplementing the Existing Deed of Trust(as so supplemented,the"Modified Deed of Trust"),to provide that the Modified Deed of Trust shall also secure the 2020 Bonds. The Modified Deed of Trust authorizes future obligations evidenced by Additional Bonds as described below, to be secured by the Modified Deed of Trust, provided that the total amount of present and future obligations secured by the Modified Deed of Trust at any one time does not exceed$200,000,000 and such future obligations are incurred not later than 30 years from June 1, 2018. In addition, the County will grant to the Trustee a lien on and security interest in all moneys held by the Trustee in the funds and accounts created under the Trust Agreement. If a default occurs under the Trust Agreement,the Trustee is authorized to direct the Deed of Trust Trustee to foreclose on the Mortgaged Property and apply the proceeds received as a result of any such foreclosure to the payment of the amounts due to the owners of the 2020 Bonds and the Prior Bonds,subject to the rights of the owners of any other Bonds. No assurance can be given that any such proceeds will be sufficient to pay the principal of and the interest on the Bonds. In addition,no deficiency judgment can be rendered against the County if the proceeds from any such foreclosure sale (together with other funds that may be held by the Trustee under the Trust Agreement)are insufficient to pay the Bonds in full. The 2020 Bonds do not constitute a pledge of the County's faith and credit within the meaning of any constitutional provision. See the caption"SECURITY AND SOURCES OF PAYMENT OF 2020 BONDS"herein. THE 2020 BONDS The 2020 Bonds will be dated as of their date of delivery. Interest is payable on April 1 and October 1 of each year,beginning October 1,2020,at the rates set forth on the inside front cover page of this Official Statement. Principal is payable, subject to redemption as described herein, on October 1 in the years and in the amounts set forth on the inside front cover page of this Official Statement. 2