Financial- COPS (Official Statement/Drafts)

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investments are made. As to the cost of having the Trustee make the investments as compared to the cost of having the County do so, I would ask S »> MICHAEL HANSEN <MHANSEN@OPENGOVT.OPEN.ORG> 11/30 3:38 PM »> ** High Priority ** Ed, I've completed a review of the documents you sent via UPS on November 24th. I have some comments/questions, which I will try to correspond with a document, paragraph and page number: FINANCE AND TRUST AGREEMENT Page 1, Fourth "Whereas", Could this be changed to read "will enter" after "District" and before "in to"? The County and Transit won't execute the Condominium Declaration until we have a condominium to declare. I understood this to mean we would wait until the project is complete. Page 8, Section 202(D), Is there an extra "the hereby covenants and agrees" in the seventh line? Perhaps this can be eliminated. It does not seem necessary. Although the sentence is ten lines long, there is need for only one covenant at the beginning of the sentence. I understand the entire paragraph to provide that rental interruption insurance proceeds go to make bond payments (as MBIA requires), and that the county will have a line item in the proposed budget to pay any difference between insurance proceeds and bond payment amounts. All of this is subject to appropriation by the Board. Page 17, Section 204(E), The language states: "...then the principal components of the 1998 Certificates will be subject to mandatory prepayment....". Does "subject to" give the county the option to redeem, or is the county obligated to redeem if the determination not to proceed with the project is made? I think the county wants the option. It may be unlikely that the county could proceed, but I would hate to foreclose the possibility of proceeding unilaterally. The July 1, 1999, date gives transit and the county time to work out a joint solution. Failing that, shouldn't we preserve the option to go it alone? Page 29, Section 306(D). I just want to be sure that the county must purchase a$22,000,000 title policy. The $22,000,000 is equal to the COP issuance. Until the project is actually built, the county only has the land to insure...as an existing asset. Title insurance for the value of the land would cover the real property mortgage. Title insurance for the value of the county's interest in the project ($22,000,000) could be acquired when the condo mortgage is substituted.