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from Crown Life Insurance Co. (This was the Whitewater
Guaranteed Investment Contract, or Whitewater GIC.) Thus, the
source of the funds from which the Whitewater bonds would be paid
was now Crown Life Insurance Co.
Similar transactions also took place on February 20, 1986,
with the $12,190,843.34 proceeds of the Ironwood bonds. These
proceeds were deposited in an Ironwood, Ltd., account at
Heritage. Ironwood, Ltd., gave a reimbursement note, secured by
a similar mortgage on the Ironwood property, to MCFC No. 30 in
exchange for a letter of credit securing payment of the Ironwood
bonds. But again, without the knowledge of the Housing
Authority, Ironwood, Ltd., deposited the $12,190,843.34 proceeds
with Unified. Using these proceeds, Unified purchased the
Ironwood reimbursement note from MCFC No. 30 for $11,047.408.05.
MCFC No. 30 used this latter amount to purchase a "Settlement
Annuity Contract" from Crown Life Insurance Co. (This was the
Ironwood Guaranteed Investment Contract, or Ironwood GIC.)
Although most of the Bond proceeds went into the GIC's,
substantial sums were used to pay fees, including fees to
Stubbeman, Unified, and MCFC Nos. 30 and 47. The Housing
Authority, however, only received reimbursement of administrative
fees of $16,250 in connection with the issuance of the Ironwood
bonds, and $21,375 with respect to the Whitewater bonds.
Once the money went into the GIC's, it was there
irrevocably. Although the proceeds available to buy the GIC's
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