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r <br />JUN 41980 BOOK 43' PAGE 664 <br />THEN PROCEEDED TO UPDATE SOME OF THE FIGURES SET OUT IN THEIR <br />PRELIMINARY PROPOSAL, POINTING OUT THAT THESE FIGURES WILL ILLUSTRATE <br />HOW MARKEDLY THE MARKET HAS CHANGED IN THE PERIOD OF TIME SINCE THEIR <br />PROPOSAL. HE THEN ASKED THE BOARD TO CHANGE THE INTEREST RATE SHOWN <br />ON THE BAN AS 9-1/2% To 6% AND SPECULATED THAT AS OF TODAY, IT <br />PROBABLY IS A LOT LOWER THAN THAT. ITEM 6, WHICH SHOWED AN AVERAGE <br />INTEREST INCOME RATE ON THE NET BAN PROCEEDS AND CAPITALIZED INTEREST <br />OF 14%, HE REQUESTED BE CHANGED TO°8.757., AND ITEM 7, -WHICH IS AN <br />ASSUMPTION THAT THE ISSUER WOULD HAVE TO PAY A RATE OF 10.5% FOR <br />CONVENTIONAL INTERIM FINANCING, WAS TO BE CHANGED TO 8%. ALSO THE <br />DATE FOR ISSUANCE OF THE BAN IN ITEM 3 SHOULD BE CHANGED FROM <br />JUNE 1, 1980 TO AUGUST 1, 1980. ALTHOUGH THAT DATE PROBABLY WOULD <br />NOT ALLOW ENOUGH TIME FOR THE VALIDATION AND APPEAL PERIOD, HE FELT <br />IT WOULD SUFFICE FOR ILLUSTRATION PURPOSES. MR. LYONS STATED THE <br />ASSUMPTIONS THEY ARE.LOOKING AT IS A RESOLUTION BY THE BOARD AUTHORIZING <br />THE ISSUANCE OF THE BAN AND A STATEMENT FROM FMHA THAT THEY HAVE <br />RESERVED THE MONEY AND, DEPENDING UPON COMPLIANCE WITH THE CONDITIONS <br />OF THE LOAN, THEY WILL ISSUE THE PERMANENT TAKE-OUT COMMITMENT LETTER. <br />HE THEN COMPLIMENTED MR, ENG HIGHLY FOR HIS EXTREME COOPERATION IN <br />ASSISTING THEM. <br />MR. LYONS RECAPPED THAT AS OF YESTERDAY, IT LOOKED TO THEM <br />LIKE THE CONVENTIONAL CONSTRUCTION LOAN INTEREST AT 8%, ACCORDING <br />TO THE CONSTRUCTION DRAW SCHEDULE THEY HAVE UTILIZED, WOULD RUN <br />$247,286. THE NET INTEREST INCOME, OR EXPENSE, FROM THE BAN WOULD <br />BE $4,618; SO, YOU HAVE GOT A SWING BETWEEN THE TWO OF $242,668, AND <br />THAT IS JUST BASED ON THE INTEREST EXPENSE FOR THE BANS OVER THE LIFE <br />OF THEM. <br />COORDINATOR THOMAS COMMENTED THAT WHAT MR. LYONS IS SAYING <br />IS THAT THE NET RESULT ON TODAY IS MARKET IS THAT YOU WOULD BE SHORT <br />$4,600 - THAT'S NOT ASSUMING THAT YOU HAD BORROWED THE MONEY UNDER A <br />STANDARD CONSTRUCTION LOAN BASIS. HE CONTINUED THAT, IF WE HAD <br />PURSUED THIS WHEN MR. LYONS FIRST CALLED, THE INCOME WOULD HAVE BEEN <br />CONSIDERABLY MORE. <br />w <br />