Impact
WARD: Ward
COMMITTEE:
$ IMPACT:
Title
Resolution to authorize the execution of an ISDA Credit Support Annex, JP Morgan August 2012 and March 2013 Bilateral Dodd-Frank Agreements, and to authorize and adopt certain policies and procedures for Swap Transactions in Compliance with the Wall Street Transparency and Accountability Act.
Body
ISSUE:
GMA has requested that the resolution be adopted and agreements be signed in relation to the GMA lease pool.
BACKGROUND:
The city is party to an interest rate exchange (or swap) agreement in connection with its participation in GMA's 1998 Equipment Leasing Program. This program has offered the City and other participating local governments the opportunity to lease-purchase equipment at extraordinarily low interest rates for the past 15 years. Safeguards in the swap agreements require the provide, JP Morgan to post collateral equal to the "market-to-market" value in the event their credit ratings fall below a minimum level. These funds provide additional security should the bank fail and would "make-whole" the pool members. In order to receive and hold this collateral, GMA and the members must open a Custody Account and execute various agreements.
RECOMMENDATION/REQUESTED ACTION:
Adoption of the resolution and approval for the Mayor to sign all necessary documents.