RESOLUTION NO. 109-08
A RESOLUTION OF THE
ADOPTED FEBRUARY 7, 2008
WHEREAS,
the West Mifflin Sanitary Sewer Municipal Authority (“the Authority”) had
previously awarded the original Basis Swap Agreement to Wachovia Bank, National
Association (the “Counterparty”) for the Basis Swap transaction, effective May
12, 2005 which was further amended and restated to enter into the Constant
Maturity Swap transaction on September 29, 2006, to be effective on October 1,
2007.
WHEREAS,
the Authority amended the Constant Maturity Swap Agreement on September 6,
2007, which authorized the execution and delivery of an Amended Swap Agreement
in order to change the effective date of the Constant Maturity Swap Agreement
from October 1, 2007 to October 1, 2008.
WHEREAS, as
of October 1, 2007, the Basis Swap Agreement was to remain in effect; however,
the Counterparty has requested that the Basis Swap Agreement be terminated as
of October 1, 2007 without the payment of a termination amount by either party.
WHEREAS,
based upon an analysis of the potential liability of the continuation of the
Basis Swap Agreement prepared by Municipal Government Investors Corporation
(“mGIC”), the Authority’s independent financial advisor, it is in the best
interests of the Authority to consent to the Counterparty’s request to
terminate the Basis Swap Agreement, effective as of October 1, 2007.
NOW,
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
1. Based upon the analysis of mGIC, the
Authority hereby consents to the request of the Counterparty to terminate the
Basis Swap Agreement effective as of October 1, 2007.
2. Effective Date. This Resolution shall take effect
immediately.
Adopted: February 7, 2008
ATTEST: Rick Manspeaker, Secretary