1996 - 08-19-96 Regular Meeting - Laserfiche WebLink

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avN~ 16 550 BE IT RESOLVED by the Board of Commissioners of the County of Lee, sitting as the governing body of the Issuer, as follows: (1) The sum of $250,000 will be borrowed by the Issuer in anticipation of the receipt of a $250,000 portion of the proceeds of the sale of bonds authorized to be issued by the water bond order, adopted by the Board of Commissioners of the County of Lee, sitting as the governing body of the Issuer, on September 25, 1995, for the purpose for which said bonds are authorized to be issued. Negotiable notes, each designated "Water Bond Anticipation Note," shall be issued for said sum so borrowed. (2) Said notes shall be dated September 4, 1996, shall be payable September 3, 1997 and shall bear interest from their date at a rate which shall not exceed seven per centum (7%) per annum. Such interest shall be payable at the maturity of the said notes. Each of said notes shall be signed by the Chairman of the governing body of the Issuer and the Clerk of the Issuer and the seal of the Issuer shall be affixed to each of said notes. (3) The power to fix the rate of interest to be borne by said notes and to determine the denomination or denominations of the notes and the place of payment of the notes is hereby delegated to the Chairman of the governing body of the Issuer and Clerk of the Issuer who are hereby authorized and directed to cause said notes to be prepared and to execute said notes when they shall have been sold by the Local Government Commission of North Carolina. (4) The Chairman of the governing body of the Issuer and Clerk of the Issuer are hereby authorized to make application to the Local Government Commission of North Carolina for its approval of said notes in the manner prescribed by The Local Government Finance Act. Said Local Government Commission is hereby requested to sell the notes in the manner prescribed by said Act. Said notes, when they shall have been sold by said Commission in the manner provided by law and when they shall have been executed in the manner prescribed by this resolution, shall be turned over to the State Treasurer of the State of North Carolina for delivery to the purchasers to whom they may be sold by said Commission. (5) The Issuer covenants to comply with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), to the extent required to preserve the exclusion from gross income of interest the notes for Federal income tax purposes. (6) The Issuer hereby represents that (i) the proposed notes are not private activity bonds as defined in the Code and (ii) the Issuer, together with any subordinate entities or any entities which issue obligations on behalf of the Issuer, reasonably expects that it will not issue more than $10,000,000 tax-exempt obligations (other than private activity bonds) during the current calendar year. In addition, the Issuer hereby designates the above-mentioned notes as "qualified tax-exempt obligations" for the purposes of section 265(b)(3) of the Code. 4 J