RESOLUTION NO. 17-07

RELATING TO THE DECLARATION OF INTENT BY NEWBERRY COUNTY, SOUTH CAROLINA, TO REIMBURSE CERTAIN EXPENDITURES PRIOR TO THE ISSUANCE BY THE COUNTY OF ITS SPECIAL SOURCE REVENUE BONDS OR BOND ANTICIPATION NOTES.

WHEREAS, the Internal Revenue Service and U.S. Treasury Department have promulgated Section 1.150-2 of the Treasury Regulations (the "Regulations") that authorizes an issuer to reimburse itself for expenditures made with respect to projects prior to the issuance of tax-exempt bonds for such projects; and

WHEREAS, the Regulations require that the governing body of the political subdivision declare an official intent to reimburse an expenditure prior to the incurrence of the expenditure; and

WHEREAS, Newberry County, South Carolina (the "County") anticipates incurring certain expenditures (the "Expenditures") with respect to the costs of designing, acquiring, constructing, improving or expanding infrastructure in the Mid-Carolina Commerce Park located in the County (the “Project”), prior to the issuance by the County of tax-exempt bonds for such purposes.

NOW THEREFORE, BE IT RESOLVED, by the County Council of Newberry County, South Carolina, as follows:

Section 1. The County Council hereby declares that this Resolution shall constitute its declaration of official intent pursuant to Regulation § 1.150-2 to reimburse the County from the proceeds of tax-exempt debt in the form of special source revenue bonds of the County to be issued pursuant to Sections 4-1-175 and 4-29-68 of the Code of Laws of South Carolina, 1976, as amended, for Expenditures with respect to the Project.

Section 2. The County understands that Expenditures which may be reimbursed are limited to Expenditures which are (a) properly chargeable to capital account (or would be so chargeable with a proper election or with the application of the definition of placed in service under Regulation §1.150-2) under general federal income tax principles; or (2) certain de minimis or preliminary expenditures satisfying the requirements of Regulation §1.150-2(f).

Section 3. To be eligible for reimbursement of the Expenditures, the reimbursement allocation must be made not later than 18 months after the later of (a) the date on which the Expenditures were paid, or (b) the date the Project was placed in service, but in no event more than three (3) years after the original Expenditures.

Section 4. The source of funds for the Expenditures with respect to the Project will be the County's general fund or other legally-available funds.

Section 5. This Resolution shall be in full force and effect from and after its adoption as provided by law. This Resolution shall be made available for inspection during normal business hours by the general public at the office of the Clerk of the County Council.

Adopted in a meeting duly assembled this 15^th day of August, 2007.

NEWBERRY COUNTY, SOUTH CAROLINA

_________________________________

Chairman, County Council

Newberry County, South Carolina

(SEAL)

ATTEST:

Clerk to County Council

Newberry County, South Carolina