3/12/1980 - Laserfiche WebLink

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max 42:, PAcE 905 COUNTRY COULD NOT LIVE WITH A 20-25o PRIME RATE AND THAT SOMETHING WILL DEFINITELY HAPPEN. MR. BARTON CONCURRED. MR. HOUGH STATED THAT HIS OWN ADVICE IS THAT WITH THE BONDS, YOU CAN'T GET IN ANY TROUBLE. HE BELIEVED THAT INTEREST RATES WILL BE LOWER TWO YEARS FROM NOW, BUT POINTED OUT THAT IF YOU HAVE TO PAY 11% FOR BONDS IN 1981 TO PAY OFF THE NOTES, YOU COULDN'T MEET THE PAYMENT AND YOU WOULD HAVE TO MAKE UP THE DIFFERENCE. HE FELT THE CONSERVATIVE FINANCIAL DECISION WOULD BE TO SELL THE BONDS, WHILE MOST LIKELY THE BEST PROBABILITY WOULD BE TO SELL THE NOTES. COORDINATOR THOMAS COMMENTED THAT THERE IS ONE OTHER ALTERNATIVE - NOT TO ISSUE THIS BIG AN ISSUE AND DRAW ON SOME RESERVES FOR A PORTION INSTEAD. COMMISSIONER LYONS FELT THAT WE ARE LOOKING AT VERY HARD TIMES AND STATED HE WOULD HATE TO JEOPARDIZE OUR CASH POSITION, WHICH HE FELT WOULD BE LOOKING FOR TROUBLE. COMMISSIONER WODTKE NOTED THAT A COUPLE OF WEEKS AGO WE WERE LOOKING AT 87 AND NOW WE ARE LOOKING AT 11 PLUS. HE WONDERED ABOUT ANY POSSIBILITY OF A NOTE IN THE LOCAL AREA, BECAUSE IN THE PAST WE HAVE HAD FINANCIAL INSTITUTIONS INTERESTED ON A LOCAL PARTICIPATION BASIS. COORDINATOR THOMAS INFORMED THE BOARD THAT WE HAVE SOME LOCALINVESTORS WHO HAVE IN THE PAST BOUGHT NOTES FROM HOUGH & COMPANY. HE CONTINUED THAT HE HAS TALKED TO FIRST CITRUS, AND THEY HAVE INDICATED THAT THEY ARE NOT SURE, BUT THEY WOULD LIKE TO BE ADVISED. HE POINTED OUT THAT PART OF HOUGH'S FUNCTION IS TO TRY TO MAKE ARRANGEMENTS FOR PURCHASE OF THESE NOTES, AND THEY ARE INTERESTED IN GETTING RID OF THEM AS FAST AS THEY CAN. HE DID NOT FEEL THIS WILL AFFECT THE INTEREST RATE. MR, HOUGH COMMENTED THAT THE FIRST PEOPLE THEY WOULD CALL WOULD BE THE LOCAL BANKS, BUT IT WOULD BE UNLIKELY THEY WOULD TAKE THE WHOLE THING. FINANCE OFFICER BARTON ASKED IF THEY ARE SAYING THEY WOULD BUY THEM ALL TODAY, AND MR. HOUGH STATED THAT THEY ARE PREPARED TO MAKE A FIRM BID TODAY.