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1 of 2 Morgan County 150 East Washington Street Suite 100 Madison, Georgia 30650 (706) 342-0725 fax (706) 343-6450 REQUEST FOR LOAN PROPOSALS Morgan County, Georgia (the “County”) is soliciting proposals from banks to provide a loan (the “Loan”). Approximate Amount: $2,500,000 Structure: The Loan will be a TAXABLE loan and will be evidenced by a single revenue bond (the “Bond”) issued by the Morgan County Building Authority (the “Authority”). Use of Proceeds: The proceeds from the Loan will be used by the Authority to purchase the County Administrative Building (the “Project”). The County anticipates that it will use the proceeds from the sale of the Project to fully fund its unfunded pension liability. Terms: Option One: FIFTEEN (15) year term with principal and interest payments to be made on the first day of each calendar quarter (January 1, April 1, July 1, and October 1) (each such date, a “Payment Date”), commencing April 1, 2014, in an amount needed to repay the principal of and interest on the Bond in equal, quarterly installments. Notwithstanding the foregoing, all principal and interest on the Bond will be paid in full on January 1, 2029. The Bond will bear interest at a fixed rate calculated on the basis of a 360-day year comprised of twelve 30-day months. Option Two: TEN (10) year term with principal and interest payments to be made on the first day of each calendar quarter (January 1, April 1, July 1, and October 1) (each such date, a “Payment Date”), commencing April 1, 2014, in an amount needed to repay the principal of and interest on the Bond in equal, quarterly installments. Notwithstanding the foregoing, all principal and interest on the Bond will be paid in full on January 1, 2024. The Bond will bear interest at a fixed rate calculated on the basis of a 360-day year comprised of twelve 30-day months. Security: The Authority and the County will enter into an intergovernmental contract (the “Contract”) pursuant to which the Authority will agree to issue the Bond and sell the Project back to the County, and the County will agree to operate the Project and make payments (the “Contract Payments”) to the Bank (as assignee of the Authority) in amounts sufficient to pay the debt service on the Bond. Under the terms of the Contract, the County will be obligated to levy a tax sufficient to pay the Contract Payments. The sole security for the Bond will be the Contract and the Contract Payments. The Loan will not be secured by a lien on the Project. ---PAGE BREAK--- 2 of 2 Opinions: Murray Barnes Finister LLP will be the bond counsel. Christian G. Henry LLC will represent the Authority and the County. Each firm/lawyer will render standard opinions for this type of transaction. Financial Statements: A copy of the audited financial statements of the County for the fiscal year ended June 30, 2012 and a budget for the fiscal year ending June 30, 2014 are available on the County’s website. A draft of the unaudited general fund financial statements for the fiscal year ended June 30, 2013 may be obtained from Lori Sayer at the address below. Contact: Questions regarding this request should be directed to Lori Sayer. Her contact information is set forth below: Morgan County 150 E. Washington Street Madison, GA 30650 (706) 342-0725 [EMAIL REDACTED] PROPOSALS: Proposals must be on the County’s Proposal Form (attached), and must include the rate (where indicated), the prepayment option, and any Bank fees or expenses payable by the County. (The County will be responsible for paying Bond Counsel, the Authority’s Counsel and the County’s Counsel). Proposals must be delivered by hand, (ii) overnight messenger or (iii) email to Lori Sayer at the address set forth above. Proposers may supplement the Proposal Form by attaching additional information. Proposals must be received by noon on December 6, 2013. A verbal award will be given by 4:00 on that same day (December 6, 2013). A formal award will be given or all proposals will be rejected at the Board of Commissioners meeting on December 10, 2013. By submitting a proposal, the Bank acknowledges that it has received all information needed to make an informed investment decision and credit approval and that the Bank intends to hold the Bond for its own account or loan portfolio. Right to Reject Proposals: The County reserves the right to reject any or all proposals for any reason whatsoever. Estimated Closing: The estimated closing is in January, 2014. The Bank is required to hold its rate until January 31, 2014. ---PAGE BREAK--- Morgan County 150 East Washington Street Suite 100 Madison, Georgia 30650 (706) 342-0725 fax (706) 343-6450 PROPOSAL FORM - $2,500,000 LOAN 1. Lender (legal name): 2. Contact Name & Title: 3. Address: 4. Phone: 5. E-mail: 6. Interest Rate: OPTION ONE (15 YEARS): (APR) OPTION TWO (10 YEARS): (APR) 7. Prepayment Option (check one): NO YES (if YES, list terms of prepayment below) Lender [signature]: [Type or Print Name Here]: