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PSS taps Bank of Hawaii for $16 M bond
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Posted on May 18 1999
A resolution was approved recently by the Board of Education naming Bank of Hawaii as the trustee bank for the $16 million bond for the construction of several projects of the Public School System.
Although the resolution offers the flexibility for the selection of the trustee bank in the future, the Bank of Hawaii offers reliable electronic transfers of the payments for the bond holders and the tracking of funds for the PSS contracts.
According to Federal Programs Officer Tim Thornburgh, the choice considered the reliable service it offers to PSS with a number of its federal grants being handled by the bank.
The $15.6 million bond of the PSS was sold in April, and executives from the underwriter and financial advisory firms are scheduled this month to seal the bond purchase agreement with CNMI officials.
The bond will be used to match the Covenant Section 702 funding for the construction of a new high school and junior high school on Saipan. Both projects are estimated to cost $17 million. The Board also agreed to allot $3.5 million each for Tinian and Rota, for their own school projects.
A legislation approved by the Legislature says payment for the $15.6 million loan will come from revenues to be generated from the local fuel tax. It requires the Department of Finance to earmark $2 million every year to settle the loan. Sheila D. Amor
