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~~ <br />MJ~y '_(~1`~q~ <br />COURTHOUSE SQUARE <br />REQUIREMENTS FOR BOND FINANCING <br />Private Owner Requirements: to meet requirements (see detailed outline below), the <br />Private Owner must provide either: <br />1. Letter of Credit: an irrevocable bank letter of credit in an amount equal to the <br />maximum amount of the Private Owner's share of Project costs, with the letter of credit <br />issued in favor of the County and the Transit District to be drawn upon to pay Project <br />costs <br />a. Advantage: shifts entire credit risk to the bank issuing the letter of credit, and <br />thus avoids need to disclose personal financial statement of investors in Private <br />Owner <br />2. Loan Agrcement and Equity Commitmeat: executed construction loan agreement and <br />equity commitments in an amount equal to the maximum amount of the Private Owner's <br />share of Project costs, signed and providing for lender and equity investors to advance <br />funds to County and Transit District as and when requested to pay Project Cost <br />a. Disadvantage: because the equity will be needed to fully fund Project costs, it <br />will be necessary for the equity investors to provide audited financial statements <br />to the County that will be required to be published in the Official Statement <br />~ <br />~ <br />3. Soft Commitments: Not acceptable for bond financing <br />