title
Authorization to execute third amendment to the line of credit facility.
presenter
Presenter: Michael Moran, Chief Financial Officer
end
Recommendation
It is recommended that the Board of Commissioners authorize the Chief Executive Officer or her designee to 1) execute a Third Amendment to the BMO Harris Bank N.A. Line of Credit Facility which extends the term of the line of credit facility (the "Facility") to a new 60-months term and 2) increase the amount of the Facility to $50 Million.
The requested action complies in all material respects with all applicable federal, state, and local laws, and Chicago Housing Authority ("CHA") board policies. CHA staff has completed all necessary due diligence to support the submission of this initiative.
Background
BMO Harris Bank N.A. ("BMO Harris Bank" or the "Bank") is the CHA's primary cash management bank and has consistently provided best practice service delivery in a full range of banking products and services. Under Resolution No. 2016-CHA-112, passed October 18, 2016, CHA Board authorization was granted allowing CHA to expand the authorized use of the Facility to include providing loans which support residential and community development activities and to increase the Facility total amount from $20 Million to $50 million. Under Resolution No. 2019-CHA-37, passed July 16, 2019, CHA Board authorization was granted allowing CHA to extend the Facility for an additional 60-month term and reduce the total amount of the Facility from $50 million to $25 million. The current Facility has an extended termination date from July 31, 2024 to October 15, 2024 under an Extension Letter Agreement. Under this Board action, CHA is seeking authorization to extend the Facility to a new 60-month term and to increase the total amount of the Facility from $25 Million to $50 Million for the purpose of overall liquidity enhancement.
Respectfully Submitted:
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Tracey Scott
Chief Executive Office...
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