Travis County Commissioners Court
Tuesday, June 14, 2011 (Agenda)
Health Facilities Development Corporation
Good afternoon, let's call to order the Travis County Health Facilities Development Corporation.
one item, two parts, consider and take appropriate action on the following requests.
1 a, approve execution of statement for i.r.s.
related requesting closing agreement with i.r.s.
for redemption of the corporation revenue funds benefits issued for the daughters of national charity health system series 1993 b, 1995, 1998 a and 1998 b.
1 b is to submit invoice to ascension health (daughters of charity/seton).
>> good afternoon, I'm
>> [indiscernible] the manager of the corporation.
I have cliff blunt here with us our counsel and harvey Davis, I'm just going to read the first paragraph of cliff's memo to you in your backup, then I'll let him kind of explain the -- the health facilities corporation issued the bonds for seton and ascension health is now proposing to redeem the bonds earlier than schedule.
the bonds have already been defeased, meaning there's been money deposited to the trustee to pay off the bonds as they're due and they're looking to just pay the remainder off to the i.r.s.
and are looking for permission from the i.r.s.
to pay those bonds off.
>> yeah, the only -- there's -- what they're asking the corporation to sign is a penalty of perjury statement to be attached to their request to the i.r.s.
and that statement would just basically say that to the best of our knowledge, based on the information they have provided to us, they being daughters of charity and their bond counsel or carington, based on the information provided to them we don't have any knowledge that anything in the application or request is incorrect.
and so therefore it's fine.
as she said these bonds have already been defeased, that means there's money deposited to pay off the bonds at maturity, for a variety reasons they have decided they want to go ahead and retire those bonds and completely pay them off.
doing that because of the investments that they've made in the defeaseance funds will provide quite a bit of profit and their proposal is to pay all of that profit over to the i.r.s.
as arbitrage, which is essentially what would be required anyway, I think their request that they have made is fine.
I don't see any real problems with it.
>> who would sign the penalty of perjury statement?
ms. Shields?
>> I believe that would be the president --
>> [laughter]
>> that would be.
>> president of the corporation.
s.
>> whats b about.
>> requesting approval of an invoice for staff time on this issue.
>> we don't know the amount.
>> I think we're asking for a thousand dollars.
>> questions?
>> move approval of 1 a and b.
>> second.
discussion?
all in favor?
show Commissioners Eckhardt, Gomez, Huber and yours truly voting in favor.
>> Commissioner Davis abstaining.
>> Commissioner Davis abstaining.
>> thank you all very much.
>> move adjournment.
>> second.
>> all in favor?
that passes by unanimous vote.
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