FY2016 CCDOA Financial Report as of 6302016.pdf - page 131

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
118
2. As of June 30, 2016, the 2010 F-2 PFC Bonds were supported by an Irrevocable Direct-Pay
Letter of Credit. This Letter of Credit was scheduled to expire on August 9, 2016. On July 8,
2016, the Department amended the Letter of Credit to extend the terms to August 7, 2020.
3. As of June 30, 2016, the 2008 D-3 Bonds were supported by an Irrevocable Direct-Pay
Letter of Credit. This Letter of Credit was scheduled to expire on November 4, 2016. On July
8, 2016, the Department amended the Letter of Credit to extend the terms to July 8, 2019.
4. As of June 30, 2016, the counterparty to Swap #18 was required to post collateral pursuant
to the terms of the ISDA CSA agreement. The credit rating of this counterparty was
reduced to below the required threshold level as outlined in the ISDA CSA agreement for
Swap #18. Under the terms of the ISDA CSA agreement, the Department may demand
that the counterparty post collateral to the Department or to a custodian appointed by
the Department to hold the collateral. On August 9, 2016, both the counterparty and the
Department agreed to terms with the Bank of New York Mellon under a Collateral Account
Control Agreement where Bank of New York Mellon would act as the custodian of the
collateral. On August 10, 2016, the Department posted its demand to the counterparty for
the collateral under the ISDA CSA. On August 11, 2016, the counterparty posted $39.9
million of cash as collateral with the custodian.
5. On October 11, 2016, the Supreme Court of the United States denied the writ of certiorari
filed by North American Properties.
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