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HomeMy WebLinkAbout2001 S Purchasing - Public Hearing on Installment Contract to Purchase Land Seven Mile Creek Preserve (Mayes' Hill, Ltd.)Prepared by: Geoffrey E. Gledhill Return to: Geoffrey E. Gledhill, P.O. Drawer 1529, Hillsborough, NC 27278 STATE OF NORTH CAROLINA COUNTY OF ORANGE OFFER TO PURCHASE AND CONTRACT THIS OFFER TO PURCHASE AND CONTRACT ( "Agreement "), made and entered into this the day of , 2001 by and between MAYES' HILL LTD.,' a North Carolina limited partnership, having an address of 300 C. C. Hayes Road, Purlear, North Carolina 28665, hereafter called "Seller ", and the COUNTY OF ORANGE, NORTH CAROLINA, a body politic and corporate, a political subdivision of the State of North Carolina, having an address of P.O. Box 8181, Hillsborough, North Carolina 27278, hereafter called "Buyer "; WITNESSETH: Buyer hereby offers to purchase and Seller, upon acceptance of said offer, agrees to sell and convey, all of that plot, piece or parcel of real property located in Orange County, North Carolina, which said real property is more particularly described as follows: The 109.4 -acre tract of land identified as on the plat of property titled prepared by , R.L.S., which plat is recorded at Plat Book _, Page Orange County Registry. The Property is further identified as Orange County P.I.N. 9854 -30 -5558 and has an Orange County tax map reference of 3.50..7; and The 22 -acre+ portion of the 64.31 -acre tract of land identified as on the plat of property titled prepared by , R.L.S., which plat is recorded at Plat Book _, Page Orange 1 Prepared by: Geoffrey E. Gledhill Return to: Geoffrey E. Gledhill, P.O. Drawer 1529, Hillsborough, NC 27278 STATE OF NORTH CAROLINA COUNTY OF ORANGE OFFER TO PURCHASE AND CONTRACT THIS OFFER TO PURCHASE AND CONTRACT ( "Agreement "), made and entered into this the day of , 2001 by and between MAYES' HILL LTD., a North Carolina limiter address of 300 C. C. Hayes Road, Purlear, hereafter called "Seller ", and the COUNTY CAROLINA, a body politic and corporate, a of the State of North Carolina, having an 8181, Hillsborough, North Carolina 27278, "Buyer "; WITNESSETH: 3 partnership, having an North Carolina 28665, OF ORANGE, NORTH political subdivision address of P.O. Box hereafter called Buyer hereby offers to purchase and Seller, upon acceptance of said offer, agrees to sell and convey, all of that plot, piece or parcel of real property located in Orange County, North Carolina, which said real property is more particularly described as follows: The 109.4 -acre tract of land identified as on the plat of property titled " prepared by , R.L.S., which plat is recorded at Plat Book _, Page _, Orange County Registry. The Property is further identified as Orange County P.I.N. 9854 -30 -5558 and has an Orange County tax map reference of 3.50..7; and The 22 -acre+ portion of the 64.31 -acre tract of land identified as on the plat of property titled prepared by , R.L.S., which plat is recorded at Plat Book Page _, Orange 1 County Registry. The Property is further identified as Orange County P.I.N. 9844 -91 -1497 and has an Orange County tax map reference of 3.45..14. THE TERMS AND CONDITIONS OF THIS AGREEMENT ARE AS FOLLOWS: 1. PURCHASE PRICE: The purchase price for the Property shall be FIVE HUNDRED THIRTY -EIGHT THOUSAND SEVEN HUNDRED FORTY AND 00/100 DOLLARS ($538,740). The purchase price shall be paid by payment in cash at the closing of $107,748 and the execution of a promissory note secured by a first lien deed of trust on the Property which promissory note will provide for the payment of the balance of the purchase price in 20 quarterly installments. The first installment of principal and interest will be due on September 1, 2001. The subsequent installments of principal and interest will be due on a quarterly basis as shown on the amortization schedule attached hereto as Exhibit C. Installment payments shall include interest on the unpaid balance at the rate of 5.0% per annum, per Exhibit C. Neither the promissory note nor the deed of trust will prohibit or provide a penalty for prepayment of any amount of the unpaid principal balance. The promissory note and deed of trust will be in substantially the form of Exhibits A and B hereto respectively. 2. TITLE: Title will be delivered to Buyer at closing by a General Warranty Deed made to the County of Orange, North Carolina, which shall be fee simple marketable title, free of liens, encumbrances, easements, restrictions, rights and conditions, including, but not limited to, any promissory note, mortgage, deed of trust, real estate contract, right of first 2 refusal, or option to buy, other than current property taxes and rights, reservations, covenants, easements, conditions, and restrictions of record as of the effective date of this Agreement that do not materially affect the value of the Property or unduly interfere with Buyer's intended use of the Property, and those exceptions approved in writing by Buyer ( "Permitted Exceptions "). 3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER: Seller makes the following representations and warranties to Buyer as of the effective date of this Agreement and again as of the Closing Date: (a) Title. At the Closing Date, Seller shall have good, marketable, and indefeasible fee simple title to the Property subject only to the Permitted Exceptions, and Seller is aware of no other matters that adversely affect title to the Property. (b) Leases. There are no leases, licenses, or other agreements granting any person or persons the right to use or occupy the Property or any portion thereof. (c) Options. Seller has not granted any options nor committed nor obligated themselves in any manner whatsoever to sell the Property or any portion thereof to any party other than Buyer. (d) Construction Liens. To the extent any improvements have been made or will be made to the Property prior to the Closing Date that might form the basis of mechanics' or materialmen's liens, Seller agrees to keep the Property free from such liens that might result and to indemnify, defend, and hold 9 Buyer harmless from any and all such liens and all attorneys' fees and other costs incurred by reason thereof. (e) Reports. All Reports, certificates, and other documents containing factual information delivered by Seller, or by Seller's agents in connection with this Agreement, are and shall be, to the best of Seller's knowledge, true and complete and shall not contain any untrue statement of material fact or omit to state any material fact, the disclosure of which is necessary to make the statements contained therein and in this Agreement, in light of the circumstances under which they are made, not misleading. (f) Inspections and Environmental. (1) Seller has no knowledge of any underground storage tanks being located on the Property. Buyer agrees to perform a Phase I Environmental Assessment of the Property (hereafter "the Phase I "), at Buyer's expense. Should the Phase I disclose that one or more underground storage tanks are located on the property, a condition precedent to Buyer's obligation to close on the sale of the Property is that the following be done at Seller's expense: (1) any underground storage tanks located on the Property be removed, (2) all discharged fuel oil or other contaminants be removed from the Property, (3) a copy of a certificate demonstrating removal and clean -up be provided to Orange County, c/o Pamela Jones, Director of Purchasing and Central Services, 132 E. King Street, Hillsborough, North Carolina 27278, as soon as the certificate is available and (4) N the original of the certificate be provided to Buyer at the closing. follows: (2) Seller warrants and represents to Buyer as (i) Seller has no knowledge of, and no reason to believe: (A) that any industrial use has been made of the Property, (B) that the Property has been used for the storage, treatment or disposal of chemicals or any wastes or materials that are classified by federal, State or local laws as hazardous or toxic substances, or (C) that any manufacturing, landfilling or chemical production has occurred on the Property. (ii) The Property is in compliance with all federal, State and local environmental laws and regulations, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ( "CERCLA "), Public Law No. 96 -510, 94 Stat. 2767, 42 USC 9601 et seq., and the Superfund Amendments and Reauthorization Act of 1986 ( "SARA "), Public Law No. 99 -499, 100 Stat. 1613. (iii) Seller has fully disclosed to Buyer the existence, extent and nature of any hazardous materials, substances, wastes or other environmentally regulated substances (including without limitation, any materials containing asbestos), in or under the Property or use in connection therewith. (3) Seller shall indemnify and hold Buyer and the Deed of Trust Trustee harmless from and against (i) any and all damages, penalties, fines, claims, liens, suits, liabilities, 5 costs (including clean -up costs), judgments and expenses (including attorneys', consultants' or experts' fees and expenses) of every kind and nature suffered by or asserted against Buyer and /or the Deed of Trust Trustee as a direct or indirect result of any warranty or representation made by Seller in subsection (f) herein being false or untrue in any material respect, or (ii) any requirement under any law, regulation or ordinance, local, State or federal, which requires the elimination or removal of any hazardous materials, substances, wastes or other environmentally regulated substances by Buyer or Seller or any transferee or assignee of Buyer, the Deed of Trust Trustee or Seller. (4) Should the Phase I disclose the existence on the Property of any hazardous materials, substances, wastes or other environmentally regulated substances (including without limitation, any materials containing asbestos), a condition precedent to Buyer's obligation to close on the sale of the Property is that the following be done at Seller's expense: (i) any such material or substance located on the Property be removed, (ii) other found contaminants be removed from the Property, (iii) that a copy of a certificate demonstrating removal and clean -up be provided to Orange County, c/o Pamela Jones, Director of Purchasing and Central Services, 132 E. King Street, Hillsborough, North Carolina 27278, as soon as the certificate is available and (iv) that the original of the certificate be provided to Buyer at the closing. R, (5) Seller's obligations under this subsection (f) shall continue in full effect notwithstanding receipt of the Required Payments or foreclosure under the deed of trust or delivery of a deed in lieu of foreclosure. (g) Representations /Warranties. All representations and warranties contained in this Agreement are true and correct as of the date of execution of this Agreement and will be true as of the Closing Date and shall survive Closing and execution of the Deed and shall not be merged therein. 4. SETTLEMENT CHARGES: (a) Seller shall pay for the preparation of a deed, for the preparation and recording of all documents necessary to convey marketable fee simple title free of liens and encumbrances, and for the excise tax required by law. (b) Buyer shall pay for recording the deed. (c) Ad valorem taxes on the Property, if any, shall be prorated on a calendar year basis to the date of closing. Seller shall pay any Orange County ad valorem taxes on personal property of Sellers for the entire year of the closing. Seller shall pay all deferred taxes and any tax penalties including late listing penalties. (d) Buyer shall pay for the entire cost of the survey of the Property and all other closing costs other than those associated with environmental cleanup, if necessary, as provided in paragraph 3(f). 7 5. CONDITIONS: (a) Buyer's obligation to purchase the Property as provided in this Offer to Purchase and Contract is at all times and in all respects subject to approval by the Orange County Board of Commissioners as to the installment payment terms and is not a final offer until the Orange County Board of Commissioners approves the installment payment terms following a public hearing as by law provided. (b) Seller agrees to allow Buyer access to the Property for the purpose of inspecting, testing and analyzing the Property at any time prior to the closing of the purchase of the Property. (c) On request of Buyer, Seller agrees to exercise Seller's best efforts to deliver to Buyer, as soon as reasonably possible following the signing of this agreement, copies of any title information in possession of or available to Seller, including, but not limited to, title insurance policies, attorneys opinions on title, surveys, covenants, deeds, notes, and deeds of trust and easements relating to the Property. (d) Any and all deeds of trust, liens or other charges against the Property not assumed by Buyer must be paid and cancelled by Seller prior to or at closing. (e) Buyer agrees to restrict the use of any part of this land from any type of landfill or solid waste disposal facility. 6. MISCELLANEOUS PROVISIONS: (a) This Agreement embodies and constitutes the entire understanding between the parties with respect to the transaction contemplated herein and all prior agreements, understandings, M. representations and statements, oral or written, are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by the party against whom the enforcement of such waiver, modification, amendment or discharge or termination is sought, and then only to the extent set forth in such instrument. (b) This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina, without, however, giving effect to any principle of conflicts of law. (c) The captions in this Agreement are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this Agreement or any of the provisions hereof. (d) Any provision contained in this Agreement which by its nature and effect is required to be observed, kept or performed after the Closing Date, shall survive the closing and remain binding upon and for the benefit of the parties hereto, their heirs, personal representatives, successors or assigns, until fully observed, kept or performed. (e) This Agreement shall be binding and shall inure to the benefit of the parties hereto and their respective beneficiaries, heirs, personal representatives, successors and permitted assigns. (f) As used in this Agreement, the masculine shall include the feminine and neuter, and vice versa; the singular shall 9 include the plural and the plural shall include the singular, as the context may require. 7. CLOSING: All parties agree to execute any and all documents and papers necessary in connection with the closing and transfer of title to the Property on or before June 29, 2001 in Hillsborough, North Carolina ( "Closing Date ,,). 8. POSSESSION: Possession of the Property shall be delivered at closing. IN WITNESS WHEREOF, the Seller has hereunto set his hand and seal, the day and year written above, and Orange County has caused this instrument to be signed by the chair of the Board of County Commissioners and attested by the Clerk to its Board of County Commissioners, all the day and year written above. SELLER: MAYES' HILL LTD. By: Eli 54 beth C. Mayes, Individually and as General Partner of MAYES' HILL LTD. By: �r� Dewey —S. Mayes, Attorney in Fact for Elizabeth C. Mayes BUYER: ORANGE C UNTY, �THCAROLINA By: Stephen H. Halkiotis, Chair Orange County Board of Commissioners 10 ATT Beverly A. Blyth Clerk to the Board of Commissioners NORTH CAROLINA 0 COUNTY ��"""'���� I, C1 C 1 a Notary Pub], c\o ab e C��oau�tys »� and the aforesaid Sta certify that ��- na personally came before me this day and duly sw rn acknoCqledged that they executed the foregoing instrument for the purposes contained within. Wit ss my hand e day of G , and official stamp or seal, this the 300% 200. Notaa.Zy Public My commission expires: Ac,,.S+ NO TH CAROLINA COUNTY a Notary Public for said County and State, do hereby certify that Dewey S. Mayes, attorney in fact for Elizabeth C. Mayes, personally appeared before me this day, and being by me duly sworn, says that he executed the foregoing and annexed instrument for and in behalf of the said Elizabeth C. Mayes, and that his authority to execute and acknowledge said instrument is contained in an instrument duly executed, acknowledged, ana recorded in the office of in the County of State of n, -f,4 e rD ihu- , on the (?)t4 day of 19_ and that this instrument was executed under and by virtue of the authority given by said instrument granting him power of attorney. I do further certify that the said Dewey S. Mayes acknowledged the due execution of the foregoing and annexed instrument for the purposes therein expressed for and in behalf of the said Elizabeth C. Mayes. Witijqss my hand and official stamp or seal, this the o� day of n ay 2 0 0_J_ . Notary Public My commission expires: 11 NORTH CAROLINA COUNTY OF ORANGE I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County, North Carolina and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chair of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal, this the 30i day of a 200. t P lic My ommission expires: UQ�aS� �I � 2vo 5 12 Permitted Exceptions 1. Easements /Road Maintenance Agreement Recorded at Book 626, Page 48, Orange County Registry. 2. Plat of survey entitled "Lot and Private Access Easement" Recorded at Plat Book 46, Page 139, Orange County Registry. Exhibit A SATISFACTION: The debt evidenced by this note has been satisfied in full this day of , 20 Signed: INSTALLMENT PURCHASE PROMISSORY NOTE Hillsborough, N.C. 2000 FOR VALUE RECEIVED the undersigned, Orange County, North Carolina (the "County "), promises to pay to MAYES' HILL, LIMITED, or assigns of which the County has been notified, the principal sum of $430,992, with interest from at the rate of five per cent (5.0%) per annum on the unpaid balance until paid, both principal and interest payable in lawful money of the United States of America, by mailing said moneys to MAYES' HILL, LIMITED, 300 C. C. Hayes Road, Purlear, North Carolina 28665 or at such place as the legal holder hereof may designate in writing. The principal and interest shall be due and payable in monthly installments pursuant to the attached Amortization Schedule. This instrument has been preaudited in the manner required by The Local Government Budget and Fiscal Control Act. Dated: , 20 Finance Director, Orange County In the event of (a) default in payment of any installment of principal or interest hereof as the same becomes due and such default is not cured within 10 days after written notice to the undersigned, or (b) default under the terms of any instrument securing this Note, and such default is not cured within 20 days after written notice to the undersigned, or (c) a Nonappropriation as described below then in any such event the holder may without further notice, declare the remainder of the principal sum, together with all interest accrued thereon at once due and payable. Failure to exercise this option shall not constitute a waiver of the right to exercise the same at any other time. This Note is to be governed and construed in accordance with the laws of the State of North Carolina. This Note Carolina General of the purchase Deed of Trust property therein is delivered under the authority of North Statute Section 160A -20 as part of the payment price for real property, and is secured by a of even date (the "Deed of Trust ") to Trustee, which is a lien upon the described. The obligation of the County to make payments hereunder shall not constitute a mandatory payment obligation of the County in any ensuing fiscal year beyond the then current fiscal year. This Note does not directly or indirectly or contingently obligate the County to make any payments beyond those appropriated in the sole discretion of the County for any fiscal year. In the event the governing board of the County determines not to appropriate in its budget any amount to pay the sums due hereunder in the fiscal year for which such budget applies, said board shall adopt a resolution specifically deleting such appropriation and stating the reasons therefor (any such decision not to appropriate being herein called a "Nonappropriation ") . The County shall have the right, at any time, to terminate its obligation to make payments hereunder by permitting the occurrence of a Nonappropriation. In the event of a Nonappropriation, the holder(s) of this Note shall have and may exercise, to the extent permitted by law, any of the remedies following a default hereunder or under the related Deed of Trust. NOTWITHSTANDING ANYTHING HEREIN OR IN THE DEED OF TRUST TO THE CONTRARY, NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST THE COUNTY IN ANY ACTION FOR BREACH OF ANY OBLIGATION UNDER THIS NOTE OR THE DEED OF TRUST OR UPON A NONAPPROPRIATION, AND THE TAXING POWER OF THE COUNTY IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY TO SECURE ANY MONEYS DUE UNDER THIS NOTE, THE DEED OF TRUST OR THE COUNTY'S OBLIGATION TO PURCHASE REAL PROPERTY IN CONNECTION WITH THIS TRANSACTION. IN WITNESS WHEREOF, Orange County has duly caused this instrument to be executed the day and year first above written. ATTEST: Clerk to the Board of Commissioners of Orange County 1sg:orangecounty \mayesnote.doc ORANGE COUNTY, NORTH CAROLINA By: Stephen H. Halkiotis, Chair Board of Commissioners of Orange County Exhibit B DRAWN BY AND RETURN TO: Geoffrey E. Gledhill P.O. Drawer 1529 Hillsborough, North Carolina 27278 STATE OF NORTH CAROLINA INSTALLMENT PURCHASE DEED OF TRUST COUNTY OF ORANGE THIS INSTALLMENT PURCHASE DEED OF TRUST (the "Deed of Trust ") made this day of 1 20_, by and between ORANGE COUNTY, NORTH CAROLINA, whose address is Post Office Box 8181, Hillsborough, North Carolina 27278 (hereinafter referred to as the "Grantor "); whose address - is (hereinafter referred to as the "Trustee); and MAYES' HILL LTD., whose address is 300 C. C. Hayes Road, Purlear, North Carolina 28665 (hereinafter referred to as the "Beneficiary "). The designation Grantor, Trustee and Beneficiary as used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. W I T N E S S E T H: WHEREAS, under the authority of North Carolina General Statute Section 160A -20, the Grantor has delivered to the Trustee its Installment Purchase Promissory Note of even date (the "Note ") in the principal sum of $430,992, the terms of which are incorporated herein by reference, as a part of the payment of the purchase price for real property purchased from the Trustee. The final due date for payment of the Note, if not sooner paid, is June 1, 2006. NOW, THEREFORE, as security for the Grantor's obligation under the Note and other valuable consideration, the receipt of which is hereby acknowledged, the Grantor has bargained, sold, given, granted and conveyed and does by these presents bargain, sell, give, grant and convey to said Trustee, his heirs, or successors, and assigns, the parcel(s) of land situated in Orange County, North Carolina, (the "Premises ") and more particularly described as follows: The 109.4 -acre tract of land identified as on the plat of property titled prepared by R.L.S., which plat is recorded at Plat Book Page Orange County Registry. The Property is further identified as Orange County P.I.N. 9854 -30 -5558 and has an Orange County tax map reference of 3.50..7; and The 22 -acre portion of the 64.31 -acre tract of land identified as on the plat of property titled prepared by R.L.S., which plat is recorded at Plat Book _, Page Orange County Registry. The Property is further identified as Orange County P.I.N. 9844 -91 -1497 and has an Orange County tax map reference of 3.45..14. TO HAVE AND TO HOLD said Premises with all privileges and appurtenances thereunto belonging to said Trustee, his heirs, successors, and assigns forever, upon the trusts, terms and conditions, and for the uses hereinafter set forth. If the Grantor shall pay the Note secured hereby in accordance with its terms, together with interest thereon, and any renewals or extensions.thereof in whole or in part, all other sums secured hereby and shall comply with all of the covenants, terms and conditions of this Deed of Trust, then this conveyance shall be null and void and may be cancelled of record at the request and the expense of the Grantor. If, however, there shall be (a) any default in the payment of any sums due under the Note or this Deed of Trust and such default is not cured within 10 days from the due date, or (b) any default in any of the other covenants, terms or conditions of the Note secured hereby, or any failure or neglect to comply with the covenants, terms or conditions contained in this Deed of Trust or any other instrument securing the Note and such default is not cured within 20 days after written notice, or (c) the occurrence of a Nonappropriation as described in the Note, then and in any of such events, without further notice, it shall be lawful for and the duty of the Trustee, upon request of the Beneficiary, to sell the land herein conveyed at public auction for cash, after having first given such notice of hearing as to commencement of foreclosure proceedings and obtained such findings or leave of court as may then be required by law and after having first given such notice and having first advertised the time and place of such sale in such manner as may then be provided by law, and upon such and any resales and upon compliance with the law then relating to foreclosure proceedings under power of sale to convey title to the purchaser in as full and ample manner as the Trustee is empowered. The Trustee shall be authorized to retain an attorney to represent him in such proceedings. Notice under the Note and this Deed of Trust shall be effective upon deposit in the United States mail, postage prepaid, addressed to the appropriate party or upon actual delivery. The proceeds of the Sale shall after the Trustee retains his commission, together with reasonable attorneys' fees incurred by the Trustee in such proceeding, be applied to the costs of sale, including, but not limited to, costs of collection, taxes, assessments, costs of recording, service fees and incidental expenditures, the amount due on the Note hereby secured and advancements and other sums expended by the Beneficiary according to the provisions hereof and otherwise as required by the then existing law relating to foreclosures. The Trustee's commission shall be five percent (5%) of the gross proceeds of the sale or the minimum sum of $300 whichever is greater, for a completed foreclosure. In the event foreclosure is commenced, but not completed, the Grantor shall pay all expenses incurred by Trustee, including reasonably attorneys' fees, and a partial commission computed on five percent (5%) of the outstanding indebtedness or the above stated minimum sum, whichever is greater, in accordance with the following schedule, to -wit: one - fourth thereof before the Trustee issues a notice of hearing on the right to foreclosure; one -half thereof after issuance of said notice; three - fourths thereof after such hearing; and the greater of the full commission or minimum sum after the initial sale. And the said Grantor does hereby covenant and agree with the Trustee as follows: 1. TAXES, ASSESSMENTS, CHARGES The Grantor shall pay all taxes, assessments and charges as may be lawfully levied against said Premises within 30 days after the same shall become due. In the event that Grantor fails to so pay all taxes, assessments and charges as herein required, then Beneficiary, at his option, may pay the same and the amounts so paid shall be added to the principal of the Note secured by this Deed of Trust, and shall be due and payable upon demand of Beneficiary. 2. WASTE. The Grantor will keep the Premises herein conveyed in as good order, repair and condition as they are now, reasonable wear and tear excepted, and will comply with all governmental requirements respecting the Premises or their use, and will not commit or permit any waste. 3. CONDEMNATION. In the event that any or all of the Premises shall be condemned and taken under the power of eminent domain, Grantor shall give immediate written notice to Beneficiary and Beneficiary shall have the right to receive and collect all damages awarded by reason of such taking, and the right to such damages hereby is assigned to Beneficiary who shall have the discretion to apply the amount so received, or any part thereof, to the indebtedness due hereunder and if payable in installments, applied in the inverse order of maturity of such installments, or to any alteration, repair or restoration of the Premises by Grantor and to account to the Grantor with respect to any surplus thereof. 4. WARRANTIES. Grantor covenants with Trustee and Beneficiary that it is seized of the Premises in fee simple, has the right to convey the same in fee simple, that title is marketable and free and clear of all encumbrances, and that it will warrant and defend the title against the lawful claims of all persons whomsoever, except for the exceptions hereinafter stated. 5. SUBSTITUTION OF TRUSTEE. Grantor and Trustee covenant and agree to and with Beneficiary that in case the Trustee, or any successor trustee, shall die, become incapable of acting, renounce his trust, or for any reason the holder of the Note desires to replace said Trustee, then the holder may appoint, in writing, a trustee to take the place of the Trustee; and upon the probate and registration of the same, the trustee thus appointed shall succeed to all rights, powers and duties of the Trustee. 6. ADVANCEMENTS. If Grantor shall fail to perform any of the covenants or obligations contained herein or in any other instrument given as additional security for the Note secured hereby, the Beneficiary may, but without obligation, make advances to perform such covenants or obligations, and all such sums so advanced shall be added to the principal sum, shall bear interest at the rate provided in the Note secured hereby for sums due after default and shall be due from Grantor on demand of the Beneficiary. No advancement or anything contained in this paragraph shall constitute a waiver by Beneficiary or prevent such failure to perform from constituting an event of default. 7. WAIVERS. Grantor waives all rights to require marshalling of assets by the Trustee or Beneficiary. No delay or omission of the Trustee or Beneficiary in the exercise of any right, power or remedy arising under the Note or this Deed of Trust shall be deemed a waiver of any default or acquiescence therein or shall impair or waive the exercise of such right, power or remedy by Trustee or Beneficiary at any other time. 8. TAX COMPLIANCE. The Grantor shall not take, permit or omit to take any action the taking, permitting or omission of which would cause its payment obligations under the Note to be "arbitrage bonds" or "private activity bonds" within the meaning of the Code, or otherwise adversely affect the exclusion from gross income for federal income tax purposes of interest on the Note to which such interest would otherwise be entitled. If the Grantor should take, permit or omit any such action, then the Grantor shall take all lawful actions within its power necessary to rescind or correct such actions or omissions promptly upon the Grantor's having knowledge thereof. For the purposes of this paragraph, "Code" means the United States Internal Revenue Code of 1986, as amended through the delivery date of the Note, and includes applicable Treasury regulations. 9. NO DEFICIENCY. AS SET FORTH ABOVE, THIS DEED OF TRUST SECURES AN OBLIGATION OF THE GRANTOR FOR THE UNPAID PURCHASE PRICE FOR REAL PROPERTY ACQUIRED UNDER THE AUTHORITY OF NORTH CAROLINA GENERAL STATUTE SECTION 160A -20, WHICH OBLIGATION IS EVIDENCED BY THE NOTE. AS PROVIDED IN THE NOTE, NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST THE GRANTOR IN ANY ACTION TO ENFORCE THE RIGHTS OF THE HOLDER OF THE NOTE, THE TRUSTEE OR THE BENEFICIARY HEREUNDER OR, UNDER THE NOTE OR PURSUANT TO. THE OBLIGATION OF THE GRANTOR TO PURCHASE THE PREMISES, AND THE TAXING POWER OF THE GRANTOR IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY TO SECURE ANY MONEYS DUE UNDER THE NOTE, THIS DEED OF TRUST OR THE GRANTOR'S OBLIGATION TO PURCHASE REAL PROPERTY IN CONNECTION WITH THIS TRANSACTION. IN WITNESS WHEREOF, the Grantor has caused this instrument to be executed by its elected Chair and attested by its Clerk by authority of its Board of Commissioners, the day and year first above written. ATTEST: Clerk to the Board of Commissioners of Orange County ORANGE COUNTY, NORTH CAROLINA By: Stephen H. Halkiotis, Chair, Board of Commissioners of Orange County 0 NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally appeared before me this day and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as an act of the County, the foregoing instrument was signed in its name by its Chair and attested by Beverly A. Blythe as its Clerk. Witness my hand and official stamp or seal, this day of 2000. Notary Public My Commission Expires: (SEAL - STAMP) The foregoing Certificate(s) of is certified to be correct. This instrument and this certificate are duly registered at the date and time and in the Book and Page shown on the first page hereof. COUNTY. 1sg:orangecounty \mayesdoftr.doc By: REGISTER OF DEEDS FOR ORANGE Deputy /Assistant- Register of Deeds Exhibit C Amortization Schedule Initial Loan Amount: Initial Interest Rate: Initial Periods: Points: Origination Date: First Payment Due: Payment Method: Compounding Method: Amortizing Method: Rate Basis: Points Paid: $430,992.00 5.0000 20 0.0000 06/30/01 09/01/01 Quarterly Monthly Fixed Principal Ordinary At Origination Amortization Schedule Page: 2 # /Yr ' Date PaiTient Princi al Interest Balance Init /01 06/30/01 $0.00 $0.00 $0.00 $430,992.00 1 /01 09/01/01 $24,389.79 $21,549.60 $2,840.19 $409,442.40 2/01 12/01/01 $26,688.98 $21,549.60 $5,139.38 $387,892.80 Annual Totals: $51,078.77 $43,099.20 $7,979.57 Running Totals: $51,078.77 $43,099.20 $7,979.57 3/01 03/01/02 $26,418.49 $21,549.60 $4,868.89 $366,343.20 4/01 06/01/02 $26,148.00 $21,549.60 $4,598.40 $344,793.60 5/02 09/01/02 $25,877.50 $21,549.60 $4,327.90 $323,244.00 6/02 12/01/02 $25,607.01 $21,549.60 $4,057.41 $301,694.40 Annual Totals: $104,051.00 $86,198.40 $17,852.60 Running Totals: $155,129.77 $129,297.60 $25,832.17 7/02 03/01/03 $25,336.52 $21,549.60 $3,786.92 $280,144.80 8/02 06/01/03 $25,066.02 $21,549.60 $3,516.42 $258,595.20 9/03 09/01/03 $24,795.53 $21,549.60 $3,245.93 $237,045.60 10/03 12/01/03 $24,525.03 $21,549.60 $2,975.43 $215,496.00 Annual Totals: $99,723.10 $86,198.40 $13,524.70 Running Totals: $254,852.87 $215,496.00 $39,356.87 11/03 03/01/04 $24,254.54 $21,549.60 $2,704.94 $193,946.40 12/03 06/01/04 $23,984.05 $21,549.60 $2,434.45 $172,396.80 13/04 09/01/04 $23,713.55 $21,549.60 $2,163.95 $150,847.20 14/04 12/01/04 $23,443.06 $21,549.60 $1,893.46 $129,297.60 Annual Totals: $95,395.20 $86,198.40 $9,196.80 Running Totals: $350,248.07 $301,694.40 $48,553.67 15/04 03/01/05 16/04 06/01/05 17/05 09/01/05 18/05 12/01/05 Annual Totals: Running Totals: $23,172.56 $21,549.60 $22,902.07 $21,549.60 $22,631.58 $21,549.60 $22,361.08 $21,549.60 $1,622.96 $107,748.00 $1,352.47 $86,198.40 $1,081.98 $64,648.80 $811.48 $43,099.20 $91,067.29 $86,198.40 $4,868.89 $441,315.36 $387,892.80 $53,422.56 19/05 03/01/06 $22,090.59 $21,549.60 $540.99 20/05 06/01/06 $21,820.09 $21,549.60 $270.49 Annual Totals: $43,910.68 $43,099.20 $811.48 Running Totals: $485,226.04 $430,992.00 $54,234.04 $21,549.60 $0.00 Prepared By: Orange County