3/12/1980 - Laserfiche WebLink

Home Browse Search

THAT IF THE BOARD SHOULD DECIDE TO GO BONDS, HE WOULD CERTAINLY RECOMMEND THE MBIA ROUTE. THE BOARD AGREED. THE COORDINATOR CONTINUED TO DISCUSS AN ISSUE OF $4,350,000 FOR BONDS AND $4,0$0,000 FOR NOTES AND ASKED, IN THE EVENT WE ONLY NEEDED TO USE $4,150,000, WHAT OUR POSITION WOULD BE AS FAR AS THE ARBITRAGE IS CONCERNED. MR. BLAND EXPLAINED THAT THE REST OF THE MONEY GOES INTO THE CONSTRUCTION RESERVE ACCOUNT, AND IT COULD BE INVESTED. IF YOU DIDNIT SPEND IT ALL, YOU WOULD HAVE A SURPLUS. COMMISSIONER LYONS NOTED THAT PEOPLE HAVE STOPPED SAVING MONEY EVEN IN SPITE OF THE BAD TIMES, AND THERE WON'T BE MONEY TO LOAN. HE FELT IT WILL KEEP THE INTEREST RATES UP AND DID NOT BELIEVE ALL THIS WILL BE REVERSED IN TWO YEARS, WHICH IS WHY HE FAVORS THE BONDS, COMMISSIONER DEESON AGREED THAT REPORTS SHOW THAT PEOPLE ARE SPENDING AND NOT SAVING. COMMISSIONER LOY ASKED IF WE GO THE ROUTE OF THE BONDS WITH THE INSURANCE, WHICH GIVES AN AUTOMATIC AAA RATING, COULDN'T WE DO ANY BETTER THAN THE 9.21 AND MR. HOUGH STATED THAT HE DID NOT BELIEVE SO; THAT THEY HAVE GIVEN IT THEIR BEST SHOT. DISCUSSION FOLLOWED ON BACKING BY THE RACETRACK FUNDS AND WHY, IF THEY ARE INSURED, THEY ARE NOT AS GOOD AS ANYTHING ELSE, AND COORDINATOR THOMAS NOTED THAT IF YOU FORFEIT, THE RACETRACK FUNDS ARE USED BEFORE YOU GO TO THE INSURANCE COMPANY. ATTORNEY COLLINS ASKED IF THE INSURANCE REQUIRES ONLY A ONE TIME PREMIUM, AND MR. BLAND STATED THAT IT IS JUST A ONE TIME PAYMENT AND IF YOU REFUND, YOU GET A CREDIT. HE CONFIRMED THAT THE INSURANCE COST WILL BE.$110,000. COMMISSIONER Loy STATED THAT HER CONSERVATIVE NATURE IS GOING TO PREVAIL. SHE JUST DOES NOT FEEL THE RATES WILL COME DOWN APPRECIABLY VERY SOON AND WOULD, THEREFORE, SUGGEST WE DO WHATEVER WE CAN TO EXPEDITE THIS MATTER AND GO WITH THE BONDS. W" BOOK 42, -PAGE -Qi 2 MAR 121980