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General Services Administration's Debt Management Problems With Its Participation Certificates

LCD-79-320 Published: Jul 11, 1979. Publicly Released: Jul 11, 1979.
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Highlights

Information on the problems the General Services Administration (GSA) is having in the debt management of participation certificates which were sold to finance certain buildings under the 1972 purchase contract authority is presented. No conclusions concerning the validity of the GSA claims that the trustee improperly used trust funds to purchase certificates are offered because the matter is in litigation. GSA is experiencing problems complying with the terms of the indentures relating to: (1) the use of market purchases as a credit against mandatory annual redemption; and (2) the incorrect computation of installments for annual redemptions.

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CreditDebt held by publicFinancial managementGovernment facility constructionLoan defaultsPaymentsTrust fundsBreach of contractDebt managementSpecial counsel