RESOLUTION OF THE

BETHLEHEM AREA SCHOOL DISTRICT

 

 

WHEREAS, the Bethlehem Area School District (the “School District”) has heretofore issued its General Obligation Bonds, Series of 1998 and General Obligation Bonds Series of 2001A (the “Bonds to be Refunded”); and

 

WHEREAS, the School District has been advised by its professional financial advisory team that it can enjoy significant debt service savings if it refunds the Bonds to be Refunded using proceeds of a tax exempt borrowing by a municipal authority; and

 

WHEREAS, a synthetic fixed rate borrowing using variable rate demand obligations issued by a municipal authority and an interest rate swap agreement entered into by a municipal authority is currently expected to result in the maximum amount of savings for the School District; and

 

WHEREAS, in order to be in a position to take advantage of historically low interest rates, the School District desires to authorize its professional financial advisory team to begin to take the actions necessary to undertake the refunding as described above; and

 

NOW THEREFORE, the Board of School Directors of the School District hereby resolve as follows:

 

1.                     The School District Administration is hereby authorized to take all actions necessary to retain the financial team, including, Arthurs, Lestrange & Company, Inc., as Investment Banker, Access Financial Markets as Swap Advisor, JP Morgan Chase as Swap Counterparty and Cozen O'Connor as Bond Counsel. The School District Administration is further authorized to submit all information necessary to credit enhancement and liquidity providers in connection with the guaranty of principal and interest and liquidity facility for the proposed issue of refunding bonds.

 

2.                     The School District hereby authorizes Bond Counsel to commence drafting the necessary legal documents and identifying and coordinating with the appropriate municipal authority the documents required to memorialize the synthetic fixed rate refunding issue.

 

3.                     The School District hereby authorizes Arthurs, Lestrange to commence discussions with liquidity facility and credit enhancement providers to identify the most attractive options for the School District.

 

 

 

 

 

4.                     So long as market conditions continue to indicate that the School District could enjoy debt service savings if it consummates a refunding, the School District hereby authorizes all parties to take any and all further action in connection with the refunding subject to paragraph 5 below.

 

5.                     Prior to incurring debt in connection with the refunding, the Board of School Directors of the School District is required to adopt a Bond Resolution pursuant to the terms and provisions of the Local Government Unit Debt Act.

 

ADOPTED ON THIS 24th DAY OF FEBRUARY 2003.

 

 

ATTEST:

 

_________________________          _________________________

                                 Stanley J. Majewski, Jr.                     Margaret J. Williams

Board Secretary                                  Board President