Harbor Bancorp & Subsidiaries - Page 50

                                       - 50 -                                         
          credit constitute nonpurpose investments within the meaning of              
          section 148(f)(6)(A).                                                       
               My analysis does not turn on the diversion of the bond                 
          proceeds from the contemplated purposes of the bond issues.                 
          Thus, it should answer the criticism of Judge Jacobs as to the              
          reasonable expectations of the Housing Authority officials on               
          February 20, 1986, the date on which the majority finds (and                
          Judge Jacobs agrees) the bonds were issued.  As of that date,               
          apparently, the "black [boxes]" referred to by Judge Jacobs                 
          (Jacobs, J., dissenting op. note 4) had been designed, as                   
          integral parts of the bond financings, and were known to (or                
          should have been known to) the Housing Authority.                           


























Page:  Previous  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  Next

Last modified: May 25, 2011