Council of the Cherokee Nation - File #: 08-140

• File #: 08-140
• Version: 3
• Name: The Series 2006 Health Care System Bond Cancellation and Replacement Act of 2009
• Type: Legislative Act
• Status: Passed
• File created: 10/30/2008
• In control: EXECUTIVE AND FINANCE COMMITTEE
• On agenda: 10/30/2008
• Final action: 11/10/2008
• Enactment date: 11/10/2008
• Enactment #: LA-27-08
• Title: AN ACT AUTHORIZING THE CANCELLATION AND REPLACEMENT OF CHEROKEE NATION INDEBTEDNESS ISSUED PURSUANT TO THE SERIES 2006 HEALTH CARE SYSTEM BONDS; AND DECLARING AN EMERGENCY
• Sponsors: Jack D. Baker, Cara Cowan Watts, Meredith Frailey
• Indexes: Health Care Bonds
• Code sections: N/A - Not Applicable
• Related files: R-34-06, R-99-05

Date	Ver.	Action By	Action	Result
11/18/2008	3	OFFICE OF THE CHIEF	Signed
11/10/2008	2	TRIBAL COUNCIL	Approved	Pass
10/30/2008	1	EXECUTIVE AND FINANCE COMMITTEE	Approved and Forwarded to Council	Pass

Title
AN ACT AUTHORIZING THE CANCELLATION AND REPLACEMENT OF CHEROKEE NATION INDEBTEDNESS ISSUED PURSUANT TO THE SERIES 2006 HEALTH CARE SYSTEM BONDS; AND DECLARING AN EMERGENCY
Body
BE IT ENACTED BY THE CHEROKEE NATION:

SECTION 1. TITLE AND CODIFICATION

This legislative act shall be titled and codified as “The Series 2006 Health Care System Bond Cancellation and Replacement Act of 2009”.

SECTION 2. PURPOSE

The purpose of this Act is to authorize cancellation and replacement of the Cherokee Nation Series 2006 Health Care System Bonds from certain bondholders with face value totaling $3,365,000 at a discount rate of 94.375. The Bonds were repurchased utilizing the Motor Fuels Tax Scholarship Reserve Fund. The Motor Fuels Tax Scholarship Reserve Fund will be repaid at the stated interest rate (4.3%) of the Bonds until maturity (2016) from the Cherokee Nation Health Care System original pledged third party revenues.

SECTION 3. LEGISLATIVE HISTORY

The Nation issued $30,000,000 Series 2006 Health Care System Bonds on December 21, 2006 pursuant to Resolution 99-05, as amended by Resolution 34-06. The Bonds were issued to fund construction of new clinics in Muskogee and Nowata and an administrative annex for the Redbird Smith clinic in Sallisaw. The Bonds are secured by a pledge of the health clinics third party revenue and a general obligation of the Nation. The Bonds carry a coupon rate ranging from 4.1 - 4.6% and mature in three phases beginning in 2011. The Bonds authorized by this act for the cancellation and replacement mature in 2016 at a coupon rate of 4.3%.

SECTION 4. FUNDING AUTHORIZATIONS

This Legislative Act authorizes the use of the Motor Fuels Tax Scholarship Reserve Fund in the amount of $3,365,000 to replace indebtedness of Cherokee Nation Series 2006 Health Care Systems Bonds at a discount rate of 94.375. To repurchase the 2006 Health Care Systems Bonds, the Cherokee Nation is required to cancel such Bonds. This Legislative...