2005 - 01-26-05 Regular Meeting - Laserfiche WebLink

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T. B00ix 0 PILE tiS: STATE OF NORTH CAROLINA COUNTY OF LEE INTERLOCAL AGREEMENT FOR PAYMENT OF DEBT SERVICE ON WATER SYSTEM THIS AGREEMENT made and entered into this 1st day of February 2005, by and between the City of Sanford, a North Carolina municipal Corporation (hereinafter referred to as "City "), the County of Lee, one of the one hundred counties of the State of North Carolina and a body both Corporate and Politic, (hereinafter referred to as "County "), and the Lee County Water and Sewer District No. 1, a North Carolina municipal corporation, (hereinafter referred to as "District "). WITNESSETH: WHEREAS, the parties hereto have entered into an agreement to consolidate the existing water systems into one system owned and operated by the city; and WHEREAS, the District owes First Citizens Bank and Trust Company the sum of approximately 1.2 million dollars on the water bond series 1998A; and WH EREAS, the amount of this debt cannot be prepaid. NOW, THEREFORE, for and in consideration of the mutual promises made herein, the parties hereto agree as follows: 1. Contingent upon the transfer of the assets of the County and District Water Systems to the City and consummation of the consolidation of the water system, City agrees to make the semi - annual debt service payments to the County as detailed in the debt records held by the Local Government Commission. 2. The City shall wire the funds to the County's North Carolina Capital Management Trust Account no later than 2 business days prior to the debt service payment due date. 3. The County agrees to then forward the debt service payment to the bank no later than the due date of the bank payment. 4. Upon receipt of a letter from County with a copy of the fee invoice attached, the City shall reimburse County the Trustee fees incurred for First Citizens Bank serving as paying agent on this series GO Bonds.