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DOUGLAS-COFFEE COUNTY HOUSING CORP. (GA.) 1993 REFUNDING BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 10 /PRNewswire/ -- Douglas-Coffee County Leased Housing Corp.'s (Ga.) $2.2 million mortgage revenue refunding bonds, series 1993 A and B (FHA-Insured Mortgage Loan-Georgian Woods Apartments Section 8 Assisted Project) are rated 'AA' by Fitch. The A and B series are equally secured. Bonds are expected through negotiation the week of May 17 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 the City of Douglas, existing to carry out the acquisition, construction, rehabilitation, and equipping of housing projects for low-income persons. The series 1982 bonds were issued to provide moneys to make a mortgage loan to finance the construction of a 66-unit multifamily housing project in the City of Douglas.
 The current offering will 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 March 10, 2002 and 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 March 10, 2003.
 The reserve fund will be funded at maximum annual debt service payments and invested in either a liquid agreement with a provider acceptable to Fitch or short-term U.S. government obligations. The size of the reserve 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.
 In conjunction with the refunding, commencing March 2003, the interest rate payable on the original mortgage loan will be reduced. In addition, the mortgagor has agreed to waive its right to prepay the mortgage prior to March 2003. The credit is not affected by the reduced interest rate or the prepayment waiver.
 -0- 5/10/93
 /CONTACT: Lisa M. Schieffelin of Fitch, 212-908-0689/


CO: Douglas-Coffee County Leased Housing Corp. ST: Georgia IN: SU: RTG

KD -- NY105 -- 6697 05/10/93 17:19 EDT
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Publication:PR Newswire
Date:May 10, 1993
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