12-09-2016, 12:35 PM
quote:
Originally posted by Chas
Could someone please explain the terms of "the bond" to me? Yes I know it's on the HPPOA site but I'd just like the details without having to wade through the PDF.
Interest rate, payments, term, prepayment penalty etc.
I find it hard to believe anyone would enter a loan agreement with a prepayment penalty but maybe that's how these things work?
Thanks.
Chas, the interest rate is 6.972% and that is from the original bond agreement from 2007. As far as "terms", I know there are significant wording in our bylaws so you could check there as far as what is expected of the Association. Other than that, I am not sure.
The association may be able to refinance Jan. 2017 and try for a better rate for the last 10 years of the note. Is it possible that someone would be willing to refinance us with all the negative history from the last 2.5 years? I doubt it. At this point, I believe we still owe $8 mil.