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Discuss the April 30, 2024, letter from Bank of America regarding the technical default of the Series 2013 Supplemental Note Indenture dated July 1, 2013, and authorize the Chairman to sign acknowledgement of said letter.
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INITIATOR: Mayor Stanley Booker
STAFF INFORMATION SOURCE: Timothy Wilson, Acting City Attorney
Kristin Huntley, Acting Finance Director
BACKGROUND: On April 30, 2024, the Lawton Water Authority received notice that effective March 26, 2024, the Lawton Water Authority is in technical default under Section 5.17 of its Series 2013 Supplemental Note Indenture dated July 1, 2013. Section 5.17 states that the Authority is required to submit an audited financial report no more than 270 days after the close of each fiscal year. At this time, Bank of America is stating they have not received the June 30, 2023, audit as required, causing a defaulting circumstance in this loan.
EXHIBIT: Bank of America Letter dated April 30, 2024
KEY ISSUES: N/A
FUNDING SOURCE: N/A
STAFF RECOMMENDED COUNCIL ACTION: Authorize the Chairman to sign acknowledgement of the letter dated April 30, 2024, from Bank of America regarding a technical default on the Series 2013 Supplemental Note Indenture.