Title
A resolution authorizing the execution and delivery of all necessary documents in connection with 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), 2006 series A-1, A-2, A-3, A-4, A-5, A-6 and 2006 series B-1 and 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.
Body
Background:
In 2006, Sedgwick and Shawnee Counties jointly issued their Single Family Mortgage Revenue Bonds 2006 series A-1, A-2, A-3, A-4, A-5, A-6 and 2006 series B-1 and B-2. These Single Family Mortgage Revenue Bonds provided a total of $210,000,000 to be used in the provision of home mortgages for low and moderate income families in Kansas. Of the total original issue amount, $22,265,000 remains outstanding. Each series has a maturity date between 2023 and 2038, and each series can be redeemed prior to maturity on one of two call dates: December 1, 2015, or June 1, 2016.
This resolution will allow Sedgwick County to exercise the optional call on these eight bond issues by selling the Mortgage-Backed Securities (MBS) that secure these bond issues, and using the sale proceeds to repay the bondholders. Between the sale date and the call date, the proceeds would be invested. Selling the securities prior to the maturity dates and using the proceeds to redeem the original bonds on the call dates will permit the counties to lock in gains that could be lost if market conditions changed adversely prior to maturity.
Alternatives: The BoCC could choose to do nothing and allow the bonds to mature, or it could defer action until the scheduled call dates of December 1, 2015 and June...
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