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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Revenue can be replaced and they had a massive windfall this year because they got voters to revoke the property tax cap. The real reason is that they prefer MCGEO to whatever union would represent private sector warehouse workers and drivers. [/quote]
I understand the problem in your lack of understanding is because you don’t understand how bonds work.[/quote]

They can retire that debt, refinance it, or a combination. [/quote]
That’s not how secured bonds work. Privatizing ABS would result in a condition of default which would lead to an obligation to immediately repay bond holders. The default would then affect the county’s credit rating.

Please learn something before sharing bad ideas. Thanks. [/quote]

People who sell their house with a mortgage on it are also "defaulting" on their mortgage covenants, yet this happens all the time? How? By paying the lender/bond holder to exit the bond early. It's not a default then, IF the bond allows early exit.[/quote]

The “expert on county debt” is posting in bad faith. It takes about 10 minutes of research to figure out what can be paid off early and what can’t. It’s not without cost, though. Some people who read this board have worked on deals far more complex than government liquor revenue bonds. [/quote]

Okay. Please do share your research. Time for show and tell. [/quote]

Here you go. You’re an expert so I’m sure you can find the relevant portions on your own. And please also tell us where the official statement identities policy changes as a repayment risk, because it does.

https://www.montgomerycountymd.gov/BONDS/Resources/Files/2021_montgomerycounty_bonds_os.pdf[/quote]
You are the one that claimed that “it takes 10 minutes of research to figure out what can be paid early”. So please do show exactly where it says that the bonds can be paid early. I am eagerly waiting.[/quote]

Just search for redemption and you’ll see where it specifies which ones can be paid early and which ones can’t. I mistakenly thought you were familiar with this document because you have been so confidently referring to the bonds’ terms and repayment provisions.

Assuming no more bonds are issued or refinanced (and doing the latter would be very expensive because debt markets are different than when this debt was last refinanced), in April we’ll be seven years out from the retirement of bonds that cannot be redeemed early. That’s not a very long time when you consider that a change will require legislation at the county and state levels and there will need to be a wind down time thereafter. [/quote]

Sorry, 2031 is the latest maturity for the series A bonds that cannot be redeemed early. Still not a long time given everything that needs to be happen. The bottom line is the debt is hardly the set straight jacket that you make it out to be. [/quote]
LOL. Look at your trying to claim faux expertise. Not only do you now admit that outside of set early redemption dates the bond cannot be repaid early, you fail to mention the fact that I have repeatedly pointed out which is that removing ABS revenue through privatization would default the bonds. The reps are quite clear that the payments come only from ABS revenues in excess of working capital and are not a duty or obligation of the county. So thank you for doing your 10 minutes of research to coming around to the point of agreeing with me that due to these bonds, ABS cannot be privatized until they are repaid. However, and here is the funny part. The proceeds from this bond issuance was to pay off early redemption from 2011 ABS revenue bonds, which then kicked any potential privatization date down the road even further. In two years I expect they will do the same with the 2013 series. I am sorry to inform you that ABS isn’t going anywhere. [/quote]

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