HomeMy WebLinkAbout05/08/1991 - Regular Minutes City CouncilMINUTES FROM PUBLIC HEARING
May 9, 1991
My name is Larry Holt, and I am General Counsel for the Greater East Texas
Higher Education Authority, Inc. It is now 10:00 a.m., and we are presently
at the office of the Greater East Texas Servicing Corporation, 3833 S. Texas
Ave. Ste. 130, Bryan, Texas to hold a public hearing on the proposed 1991
Bond Issue of the Greater East Texas Higher Education Authority. This
meeting is held pursuant to provisions of the Internal Revenue Code requiring
a public hearing before the issuance of Bonds, the interest of which is tax
exempt to the recipient and pursuant to a publication of notice of public
meeting which appeared on Monday April 22, 1991 in THE EAGLE. I would
like to note for the record of those present at this public hearing: Dr.
Charley Wootan, Vice President of the Authority, as well as Ms. Judy Hill,
Director of Operations, Greater East Texas Servicing Corporation; acting for
and on behalf of the Authority.
As stated in the notice, the bonds the Authority proposes to issue are for the
purpose of acquiring certain qualified loans made to students or parents of
students pursuant to the Higher Education Act of 1965, as amended. These
students borrow the funds for the purpose of financing their post secondary
education. In order to qualify for purchase by the Authority, these loans
must be made to or, on behalf of, students who are residents of the State of
Texas or who attend Eligible Institutions located within the State of Texas as
the terms "Eligible Lender" and "Eligible Institution" being defined in the
Higher Education Act of 1965. The maximum aggregate face amount of these
bonds to be issued will not exceed $50,000,000. The interest on these bonds
are exempt from taxation under Section 103 of the Internal Revenue Code of
1986. I would also note that approval has been sought and obtained by the
sponsoring Cities of Bryan and College Station, Texas. These cities sponsor
the Authority's pursuant to Chapter 53 of the Texas Education Code. After
the Public Hearing today the Authority will seek formal approval by the
highest elected official of those cities for the issuance of these bonds. The
Authority anticipates that this bond issue will be divided into two traunches
with approximately $47 million of bonds representing Senior Lien debt and $3.3
million of bonds to be sold to holders who will have a Junior Lien on the
Trust Estate and be subordinate to the holders of the $47 million bonds.
That concludes the general explanation and I would now like to open the floor
to any questions or comments of those present. I will note again by the
conclusion of the comments that no members of the public appeared but I will
note that final notice was posted since 9:00 a.m. this moming on the door of
the office of the corporation. Hearing no comments and no persons having
appeared, I declare this hearing closed.
Signed this 9th day of May, 1991.
General Counsel