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be that the National City Bank of Cleveland, Cleveland, Ohio, <br /> would purchase the bonds from the current bondholders . <br /> As a condition to such a purchase , National City Bank <br /> requires that the bonds be amended to provide : <br /> a. The payment of the bonds over a period of sixty <br /> months . <br /> b . Interest at 75% of National City Bank of <br /> Cleveland' s prime lending rate or at a fixed rate <br /> of 8 .75% . <br /> c. Monthly payments of principal and interest. <br /> d. Inclusion of certain yield protection provisions in <br /> the bond documents which would go into effect in <br /> the event that the corporate tax rate changes . <br /> Upon the passage of an ordinance authorizing such <br /> amendments , National City Bank of Cleveland has expressed its <br /> intention to purchase the bonds from the existing bondholders . <br /> Closing would be subject to the approval of these existing <br /> bondholders . In the absence of such an arrangement , there is <br /> a strong possibility that SBF would be liquidated in order to <br /> pay the bondholders . <br /> ABS will continue to guarantee the payment of the bonds . <br /> Please place this matter on the Common Council' s calendar <br /> for its December 16 , 1985 , meeting. <br /> Thank you for your attention and consideration of this <br /> matter. <br /> Very tr ly your- , <br /> / <br /> Michael C. Murphy 1r <br /> MCM:mm <br /> Enclosure <br /> cc: Mr. Kenneth P. Fedder <br />