Fitch Rates Colorado's $150MM Education Loan TRANs 'F1+'.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Fitch fitch: see polecat. rates the State of Colorado's $150,000,000 education loan tax and revenue anticipation notes Revenue Anticipation Note (RAN) A short-term municipal debt issue that will be repaid with anticipated revenues, such as sales taxes, from the project. (ETRANs) series 2007A 'F1+'. The notes will be sold competitively on July 10 and mature Aug. 5, 2008. The state's financial advisor for the notes is RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
The 'F1+' rating reflects the ETRANs strong security, payable from individual school districts' loan repayments and by the state treasurer's covenant to use substantial resources to purchase any defaulted loans. The program's structural features are strong, and a significant share of the loans are made to districts with good credit quality. Note proceeds will be used to make interest-free loans to qualifying school In professional golf the term Qualifying school is used for the annual qualifying tournaments for leading golf tours such as the U.S. based PGA and LPGA Tours and the European Tour. districts to assist with the districts' cash flow. The loans are made under a program managed by the state treasurer Noun 1. state treasurer - the treasurer for a state government financial officer, treasurer - an officer charged with receiving and disbursing funds , retaining safeguards that protect credit quality and prevent borrowing abuses. The program includes eligibility requirements, monitoring throughout the year, verification of cash shortages, and enforcement measures to minimize non-payment risks. A second and larger borrowing is expected in December 2007 that will be secured on par with the series A notes. The state expects the second borrowing to be about $300 million, depending on the districts' cash flow experience and the results of tax override An arrangement whereby commissions are made by sales managers based upon the sales made by their subordinate sales representatives. A term found in an agreement between a real estate agent and a property owner whereby the agent keeps the right to receive a commission for the sale of elections in November. Several of the participating districts expect to borrow higher amounts than in prior years, resulting from a new state law that for some districts increases the share of education funding coming from property taxes and lowers the state funded portion. Each district covenants to repay its loan by remitting property taxes received after March 1, 2008 to the state treasurer one day after receipt. Loan repayments are for principal only, although the loans bear interest if a district defaults. Note interest will be pre-funded from state general fund resources at closing. Most of the district loan repayments will be made in March and May, coincident co·in·ci·dent adj. 1. Occupying the same area in space or happening at the same time: a series of coincident events. See Synonyms at contemporary. 2. with statewide property tax collections. The districts are expected to borrow from 4%-74% of their expected tax levy through the two note issues, with the higher amounts borrowed by the largest districts. The state expects 14 districts to borrow proceeds from both issuances, including one district that did not participate in last year's program. All district loan repayments are due by June 25, 2008, well in advance of the notes' August 5 maturity. Any non-payment on June 25 constitutes default by the district, and the loan begins bearing interest. Under the state's note authorizing resolution, if on June 26, the amount in the loan repayment account together with the pre-funded interest account is not sufficient to fully pay the ETRANs, the state treasurer covenants to provide the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. amount using any funds in her custody available for investment. The state has considerable resources available for such investment, including the State Education and Highway Funds. These two funds had a combined $1.25 billion on May 31, 2007. These resources are distinct from those available for borrowing to repay the state's own cash flow notes. Funds that could be used to repay $500 million in Colorado's general fund tax and revenue anticipation notes (GTRANs) on a priority basis also are available if the two funds cited above are not sufficient. These other funds are projected to total $2.7 billion at June 30, 2008, well covering both GTRAN and ETRAN issues. The five largest participating school districts are expected make up 89% of the total borrowings. These districts are amongst the state's largest, and have good credit quality. Of the remaining districts, no one represents more than 3%. Each district's cash flow demonstrates its ability to fully repay the loan, with all of the four largest borrowers anticipated to be fully repaid by May 11. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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