Agenda - 10-18-2005-8a - Laserfiche WebLink

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5 BankofAmeric ~'' October 11, 2005 Orange County, NC Attn: Mr. Kenneth T. Chavious, Finance Officer 208 South Cameron Street Hillsborough, NC 27278 RE: Financing for Triangle Sportsplex Facility Dear Mr. Chavious: Bank of America, N.A. ("Bank") is pleased to offer the following financing proposal to Orange County, NC (the "County" or "Borrower") subject to the terms and conditions stated below: BORROWER: Orange County, NC. AMOUNT: Up to $6,000,000 Installment Financing Agreement (G.S. 160A- 20), PURPOSE: To finance the costs of acquiring and renovating the Triangle Sportsplex ("the Project"). INTEREST RATE: Option 1: A fixed rate of interest of 3.44% per annum. O to ion 2: A variable rate of interest of 60% of 30-day Libor as it may change from time to time plus 80 basis points (.80). For comparison, assuming the current Libor rate, today's rate would be 3..15%. Under this option, the interest rate would be capped at a maximum of 10%, These interest rates are valid only if this commitment is accepted in writing by 12:00 noon on October 19, 2005, and if the loan is fully funded by December 15, 2005. The interest rate on the loan is set to approximate a particular percentage yield to Bank of America based in part upon Federal and State tax Taws and regulations currently in effect and reflects the Bank's understanding that interest on the loan will be exempt from Federal and State income taxes and will not be "bank- qualified" under Section 265(b) of the Internal Revenue Code of 1986. The Bank's policy is to include language in the loan documents that will assure such yield. MATURITY DATEI REPAYMENT TERMS: Maturity date will be May 1, 2006.. Principal and accrued interest will be payable at maturity. Interest will be calculated in arrears, and on an actual/360 day basis.