tk7
join:2005-05-09
4 edits | reply to Kearnstd
Re: guess the vote last year was worthless
said by Kearnstd  :the citizens voted yes to fiber and the courts are basicly saying your vote is worth shit. No, the court didn't say anything like that. In fact, the court said that the bonds to be issued were not authorized by the voters (indirectly) because the method of repaying those bonds was not allowed by the law.
In particular, the bonds pledged to repay the debt from proceeeds other than those from the activity for which the bonds were issued, i.e. the communications system, in the even of a credit event. The credit event was defined as a failure to deposit funds into some account WAY BEFORE the due date of the payments. The law only allows usage of proceeds from other activities in the event of a default, i.e. when you don't pay ON the due date. Hence the communications system could have been subsidized from another activity by simply missing the deposit date, but still paying before the due date using funds from the other activity.
The whole idea behind this law is that you don't unfairly offer cheap communications system by charging more for, say, water. Simply stated, if a local government offers a communications system, the communication system must pay for itself or be scrapped as soon as possible. |
