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Trustee Information The Next 30 Years – How to Check Up on Your Trustee?

Learn how to effectively check up on your trustee by understanding the flow of interest earnings, calculation of interest to bondholders, redemption of bonds, the mighty GIC, cash flows, project fund distributions, and rebate responsibilities. Discover possible repercussions and key questions to ask your trustee to ensure proper management of your trust.

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Trustee Information The Next 30 Years – How to Check Up on Your Trustee?

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  1. Trustee InformationThe Next 30 Years – How to Check Up on Your Trustee? Presentation for:CMTA Pre-Conference2005 Presented by: John Deleray Wells Fargo Corporate Trust & Escrow Services 213.614.3351

  2. Trustee Watch list: 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

  3. Flow of Interest Earnings: Possible Repercussions! How to Check Up on Your Trustee • From each fund to _____ fund • Reserve, Project, Revenue (or LeasePayment or Bond Fund), etc. • Project not fully or over-funded • Reserve requirement not fully met • Excess funds not being given properlyas a credit

  4. Calculation of Interest to Bondholders: Possible Repercussions! How to Check Up on Your Trustee • Variable Rate Debt • Remarketing Agent sends rates totrustee who inputs into excel spreadsheet • Incorrect calculation of interest • Unhappy Bondholders

  5. The Mighty GIC (Guaranteed Investment Contract): Possible Repercussions: How to Check Up on Your Trustee • Interest being calculated correctly? • GIC provider in balance with trustee? • Most important in project funds • Incorrect balance in trust • All possible earnings not received

  6. Cash Flows: 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

  7. Project Fund Distributions: Possible Repercussions! How to Check Up on Your Trustee • Requisitions in numerical sequence • Amount paid correctly • Angry payees • Payees double paid

  8. Rebate – the Issuer’s Responsibility: Possible Repercussions! How to Check Up on Your Trustee • How often are calculations due (annually or every 5 years)? • Who’s going to calculate Arbitrage? • Is Rebate Fund properly funded? • Ask the IRS!!!(or your Arbitrage/Rebate Provider)

  9. What’s an Issuer to Do?! 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?)

  10. Stuart Weiss – VP Business Development 213.614.3356 – tel 213.614.3355 – faxstuart.weiss@wellsfargo.com John Deleray – VP Business Development 213.614.3351 – tel 213.614.3355 – faxjohn.deleray@wellsfargo.com We’re dog-gone happy to help you!

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