Issuance of refunding bonds in an amount of not to exceed $18,750,000 by
the Red River Education Finance Corporation (the “Issuer”) for the
benefit of The Hockaday School (“Hockaday”)
The refunding bonds will be issued to refinance bonds issued by the
Issuer in November 2000 to finance improvements to Hockaday.Hockaday is located at 11600 Welch
Road.The school is in Planned
Development District 578, Zone R16, Lot 14, block B/6396.
The Hockaday School is an independent, non-sectarian, coeducational,
college preparatory day and boarding school for girls.
Hockaday is accredited by the Independent Schools Association of the
Hockaday intends to use funds received to refinance certain of the
Series 2000 Bonds originally issued to finance the new buildings and
permanent improvements at its campus, to achieve at least a 3.50%
present value savings.
Chapter 53 of the Texas Education Code (the“Code”) allows primary and secondary
private schools to borrow money through the issuance of bonds or
loans.The Code specifies that
schools may use “Education Finance Corporations” as a conduit to issue
Education Finance Corporations are created by cities for the purpose of
financing educational facilities.Such Corporations have no taxing power, no police powers, and no
powers of eminent domain.They
are “conduit” financing agencies that issue debt typically with a loan
agreement which is secured by revenues and/or property pledged from a
private educational institution.
Education Finance Corporations may issue debt for facilities outside of
their jurisdiction with permission from the governing body of the city
where the school is located. The City of Dallas does not have an
Education Finance Corporation.Under the Internal Revenue Code, Hockaday requires consent of the
City of Dallas in order for the refunding bonds to qualify as tax-
The City of Dallas is not being asked to make a loan, guarantee the
credit of Hockaday, or to provide funds or credit support of the
financing in any manner.The
refunding bonds will not be a debt or liability of the City and the
City’s name will not appear on the refunding bonds issued by the Issuer.
This request is being made in order to comply with the Internal Revenue