Presentation on theme: "Trustee Information The Next 30 Years – How to Check Up on Your Trustee? Presented by: John Deleray Wells Fargo Corporate Trust & Escrow Services 213.614.3351."— Presentation transcript:
Trustee Information The Next 30 Years – How to Check Up on Your Trustee? Presented by: John Deleray Wells Fargo Corporate Trust & Escrow Services Presentation for: CMTA Pre-Conference 2005
How to Check Up on Your Trustee Flow of Interest Earnings Calculation of Interest to Bondholders Redemption of Bonds The Mighty GIC Cash Flows Project Fund Distributions Rebate Trustee Watch list:
How to Check Up on Your Trustee From each fund to _____ fund Reserve, Project, Revenue (or Lease Payment or Bond Fund), etc. Project not fully or over-funded Reserve requirement not fully met Excess funds not being given properly as a credit Flow of Interest Earnings: Possible Repercussions!
How to Check Up on Your Trustee Variable Rate Debt Remarketing Agent sends rates to trustee who inputs into excel spreadsheet Incorrect calculation of interest Unhappy Bondholders Calculation of Interest to Bondholders: Possible Repercussions!
How to Check Up on Your Trustee Interest being calculated correctly? GIC provider in balance with trustee? Incorrect balance in trust All possible earnings not received Most important in project funds The Mighty GIC (Guaranteed Investment Contract): Possible Repercussions:
How to Check Up on Your Trustee Revenue Bond Debt (Marks Roos Debt, in particular) From the Revenue Funds, where does my revenue go? Bonds not redeemed correctly Project fund not fully funded Proper credits not given Cash Flows: Possible Repercussions!
How to Check Up on Your Trustee Requisitions in numerical sequence Amount paid correctly Angry payees Payees double paid Project Fund Distributions: Possible Repercussions!
How to Check Up on Your Trustee How often are calculations due (annually or every 5 years)? Whos going to calculate Arbitrage? Ask the IRS!!! (or your Arbitrage/Rebate Provider) Is Rebate Fund properly funded? Rebate – the Issuers Responsibility: Possible Repercussions!
How to Check Up on Your Trustee Know and check the movement of Interest Earnings Verify trustee interest rate spreadsheets (for Variable Rate Debt) Understand how and when bonds are to be redeemed Check GIC balance and ask trustee for verification of interest Know and check revenue cash flows Check Project Fund requisitions Understand your Rebate requirements (what role is your Trustee playing?) Whats an Issuer to Do?!
Were dog-gone happy to help you! John Deleray – VP Business Development – tel – fax Stuart Weiss – VP Business Development – tel – fax