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9 <br /> 1. Determination to Proceed with Financing -- The Board confirms its <br /> decision to carry out the proposed installment financing as described above, to <br /> provide financing for new public assets and improvements as well as refinancing of <br /> existing loans. <br /> Under the financing plan, the County will receive funds from the sale of the <br /> Bonds to carry out the projects, including the refinancings. The County will pay the <br /> Bonds over time, with interest. The County will secure its repayment obligation by <br /> granting a mortgage-like interest in some or all of the property acquired or improved <br /> through the proceeds of the new borrowing and, potentially some or all of the <br /> property acquired or improved through the proceeds of the borrowings to be <br /> refinanced. In particular, the County expects that the collateral will include some or <br /> all of the following: the County's Whitted Building on West Tryon Street in <br /> Hillsborough; the County library on Margaret Lane in Hillsborough; Culbreth Middle <br /> School on Culbreth Road in Chapel Hill; and Blackwood Farm Park on NC-86 in Chapel <br /> Hill. <br /> 2. Approval of Documents;Direction to Execute Documents -- The Board <br /> approves the forms of the Documents submitted to this meeting. The Board <br /> authorizes the Chair and the County Manager, or either of them,to execute and deliver <br /> the Documents in final form. The Documents in their respective final forms must be <br /> in substantially the forms presented,with changes as the Chair or the County Manager <br /> may approve. The execution and delivery of any Document by an authorized County <br /> officer will be conclusive evidence of that officer's approval of any changes. <br /> The Documents in final form,however,must provide for the aggregate principal <br /> amount of the Bonds to not exceed $39,000,000 and a financing term not to extend <br /> beyond December 31, 2041. Bonds related to refinancings must be payable not later <br /> than the end of the fiscal year in which the refinanced obligations are payable. The <br /> amount financed under the Documents may include amounts to pay financing <br /> expenses and other necessary and incidental costs. As indicated in the draft <br /> Documents, some of the Bonds will be issued on a taxable basis, and some on a tax- <br /> exempt basis. The true interest cost on the tax-exempt bonds must not exceed 4.00%, <br /> and the true interest cost on the taxable bonds must not exceed 1.50%. <br /> 3. Sale of Bonds; Approval of Official Statement - The Board appoints <br /> FHN Financial Capital Markets, as senior manager, and Robert W. Baird & Co. <br /> 2 <br />