Title
Adopt a resolution authorizing the execution and delivery of all necessary documents relating to the sale of the securities acquired with the proceeds of the Sedgwick County, Kansas and Shawnee County, Kansas Single Family Mortgage Revenue Bonds (Morgaged- Back Securities Program), 2001 Series B-2.
Body
Recommended Action: Adopt the resolution and authorize the Chairman and Commissioners to sign the resolution.
Adopt a resolution authorizing the execution and delivery of all necessary documents relating to the sale of the securities acquired with the proceeds of the Sedgwick County, Kansas and Shawnee County, Kansas Single Family Mortgage Revenue Bonds (Mortgage-Backed Securities Program), 2001 Series B-2; authorizing the execution and delivery of instructions relating to the defeasance and redemption of such bonds; and authorizing the officers, employees and representatives of Sedgwick County, Kansas, to do and perform all things necessary, appropriate and incidental thereto under the authority of the act.
Background: In 2001 Sedgwick and Shawnee Counties issued mortgage revenue refunding bonds Series B in the total principal amount of $40,000,000. These Single Family Mortgage Revenue Bonds were issed for low and moderate income families to purchase homes in Kansas. This resolution will allow Sedgwick County to sell all outstanding mortgage loans pledged under the indenture and pay off the Bonds and release the surplus of funds. Sedgwick County is projected to receive approximately $534,540.65 from this sale. The closing of the sale of these Mortgage-Backed Securities (MBS) is expected to occur on or before May 15, 2011.
Alternatives:
Financial Considerations: The Issuers have determined that current market conditions may permit the redemption or purchase of one or more series of the outstanding Bonds at purchase prices that will result in savings to the Issuers. This issue is optionally callable on 6/1/2011; and the Issuers plan to sell the MBS's at a premium, and redeem the remaining outstanding issue of the bonds. Refunded dollars will be deposited in the General Fund.
Legal Considerations: K.S.A. 12-5219 et seq. as amended, and the Constitution and laws of the State of Kansas permit cities and counties to issue revenue bonds jointly with other cities and counties to make mortgage loans, to pledge the mortgage notes and mortgages relating to such mortgage loans as security in payment of the principal of and interest on any such revenue bonds, and to enter into any agreements made in connection therewith.
Policy Considerations: