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Harrisburg University bond trustee provides update on March 1 payment
By Caroline Salls
Pittsburgh, Jan. 11 – Harrisburg University of Science and Technology has made $464,495 in debt service payments, which will be applied to a March 1 debt service payment on its series 2007 B Harrisburg Authority university revenue bonds, according to a notice from bond trustee UMB Bank, NA.
As a result of the university’s failure to make a $1.77 million loan payment due at least 75 business days before March 1, 2015, the trustee said it requested $1.3 million from Dauphin County, Pa., under a guaranty and credit support agreement to make up for the current shortfall in the debt service fund. Those funds are required to be paid by the county no later than three days before the March 1, 2016 debt service payment date.
According to the notice, the trustee and holders of a majority in principal amount of the bonds are in discussions with the university on matters related to the bonds.
As of Monday, UMB said the university had replenished and fully funded the bond reserve fund in the amount of $4.83 million. The trustee said various draws had been made on the reserve fund to pay fees and expenses related to university events of default.
In addition, the trustee said the university is still on probation with the Middle States Commission on Higher Education.
The university submitted a monitoring report to the commission on Dec. 1, and two commissioners and staff liaison were scheduled to visit the university on Jan. 11 and Jan. 12.
Following this visit, the monitoring report submitted by the university and the report by the visiting commissioners will be submitted to a commission committee in March.
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