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CROSSROADS VILLAS CORP. (GA) 1993 A & B REFUNDING BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 19 /PRNewswire/ -- Crossroads Villas Corp. (Ga.)'s $1.6 million mortgage revenue refunding bonds, 1993 Series A and B (FHA Insured Mortgage Loan-Crossroads Villas Apartments Section 8 Assisted Project) are rated "AA" by Fitch. The A and B series are equally secured. Bonds are expected to be sold through negotiation this week by J.C. Bradford & Co.
 Bond proceeds will provide funds to current refund the corporation's outstanding mortgage revenue bonds, Series 1982. The corporation is an instrumentality of the Housing Authority of Savannah, existing for the sole purpose of financing low and moderate income housing. The Series 1982 bonds were issued to provide moneys to make a mortgage loan to finance the construction of a 48-unit multifamily housing project in Savannah. The current offering will continue to be secured by the existing FHA-insured mortgage on the project. The rating reflects the strong security provided by the mortgage insurance and adequate reserves and liquidity.
 The mortgage is insured by the Federal Housing Administration (FHA) under Section 221(d)(4) of the National Housing Act. The insurance program pays claims in either cash or 20-year HUD debentures. In the event of a mortgage default for this project, the trustee is instructed to assign the mortgage to FHA rather than foreclose on the property and request the insurance claim in debentures if the default occurs on or before June 1, 2002, or in cash if the default occurs subsequently. As a condition of bond closing, HUD will execute a "debenture-lock" agreement whereby HUD agrees to waive its right to call any issued debentures until an expected date of June 7, 2003.
 The reserve fund will be funded at maximum annual mortgage payments and invested in either a liquid investment agrement with a provider acceptable to Fitch or short-term U.S. government obligations. The size of the reserve fund should be sufficient to pay debt service on the bonds until insurance claims are paid in full, provided the assignment process begins and continues in a timely fashion.
 -0- 4/19/93
 /CONTACT: Vincent J. Barberio of Fitch, 212-908-0505/


CO: Crossroads Villas Corp. ST: Georgia IN: SU: RTG

GK -- NY091 -- 7442 04/19/93 13:08 EDT
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Date:Apr 19, 1993
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