RLC Board Approve Cancellation And Forgiveness Of Bonds

(INA, IL) — The Rend Lake College Board of Trustees Tuesday voted to approve, concur and ratify the cancellation and forgiveness of the Series 2010 alternate revenue source bonds which were purchased by and owed to the college’s insurance reserve fund. In September 2010, the college issued a series of alternate revenue source bonds for approximately $3.5 million. At the same time, the college liquidated investments which were held as part of the insurance reserve fund. The cash from the liquidation was used to purchase the alternate revenue source bonds, and proceeds from the bond sale were receipted as unrestricted monies which could be used to meet general operating needs. Because there have been no payments associated with the bonds, no taxes have been levied on them. As the official bond holder, the college would in essence be paying itself for the obligations associated with the sale. The bonds did not increase the long-term debt of the college. This brought about Tuesday’s cancellation and forgiveness.