Orange County NC Website
Browse       Search
" Deed of Trust" means the Prior Deed of Trust as modified by the " Deed of <br /> Trust Supplement # 1 " dated as of June 13 , 2023 , also granted by the County for the <br /> Trustee ' s benefit , <br /> " Default Rate , " for any 2023 Bond, means an annual interest rate equal to the <br /> lesser of (a) then - current annual interest rate on that 2023 Bond plus 4 . 00 % (400 <br /> basis points) and (b) the maximum lawful rate . <br /> " Determination of Taxability" means a determination that interest on a 2023 <br /> Bond paid by the County is included in gross income of a Bondholder for federal <br /> income tax purposes, which determination shall be deemed to have been made upon <br /> the first to occur of the following : (a) the date on which the Bondholder is advised in <br /> writing by the Commissioner or any District Director of the Internal Revenue Service <br /> that, as a consequence of an action, or failure to act, by the County, the interest is <br /> included in the Bondholder' s gross income for federal income tax purposes ; (b) the <br /> date on which the County receives notice from a Bondholder that the Bondholder has <br /> been advised (i) in writing by the Internal Revenue Service that the Service has issued <br /> a statutory notice of deficiency or similar notice to the Bondholder which asserts, in <br /> effect, that interest is included in the Bondholder' s gross income for federal income tax <br /> purposes , as a result of an action, or failure to act, by the County, or (ii) by an opinion <br /> of counsel received by the Bondholder which concludes, in effect, that interest is <br /> included in the Bondholder' s gross income for federal income tax purposes as a result <br /> of an action, or failure to act, by the County; ( c) the day on which the County is advised <br /> in writing by the Commissioner or any District Director of the Internal Revenue <br /> Service that there has been issued a public or private ruling of the Internal Revenue <br /> Service that the interest is included in the Bondholder' s gross income for federal <br /> income tax purposes as a result of an action, or failure to act, by the County; or (d) the <br /> day on which the County is advised in writing by counsel to the Bondholder that a final <br /> determination, from which no further right of appeal exists, has been made by a court <br /> of competent jurisdiction in the United States of America in a proceeding with respect <br /> to which the County has been given written notice and an opportunity to participate <br /> and defend that the interest is included in the Bondholder' s gross income for federal <br /> income tax purposes , as a result of an action, or failure to act, by the County. <br /> " Event of Taxability" means any event, occurrence or situation, resulting from <br /> an action , or failure to act, by the County, the effect of which is to cause interest on the <br /> Bonds paid by the County to be includible in a Bondholder' s gross income for federal <br /> income tax purposes . <br /> 23 <br />