Thursday, June 26, 2008

A Few Updates from LCCCA Board Meeting*

The LCCCA construction bond revenue balance was reported tonight to be $25 million. I suspect this is because hard construction expenditures totaled nearly $6 million this month.

The Moody's rating of MBIA was reported to be A2. I had quoted from a Reuters news article.

The interest rate being received from MBIA was reported to be 5.3%. If the remaining funds are cashed out, they will be deposited in a money market account, at a little more than 2% return.

If MBIA does not collateralize the LCCCA's account, the LCCCA would need to ask for a refund from MBIA; it would not be automatic. The refund would include accrued interest, with no penalty. The LCCCA is under no obligation to claim its cash, but their intention is to do so.

The Guaranteed Interest Contract was reported to expire on October 1, 2008.

I may have missed a few other details, I had to briefly leave the meeting at an inopportune time. My apologies

* The editor acknowledges at this point the subject matter is over his head. The source is credible but not expert, and is not necessarily correct in this instance. Comments by others are most welcome.