About this bond issuance
The California Infrastructure and Economic Development Bank will loan the proceeds of the California Infrastructure and Economic Development Bank Refunding Revenue Bonds (Los Angeles County Museum of Art Project), Series 2016A to Museum Associates, doing business as the Los Angeles County Museum of Art pursuant to a First Supplemental Loan Agreement, dated as of November 1, 2016, which supplements a Loan Agreement, dated as of August 1, 2013, each by and between the Infrastructure Bank and the Corporation. The proceeds of the 2016A Bonds, together with other legally available funds of the Corporation, will be used by the Corporation to purchase the Purchased Bonds (as defined herein) and to pay costs of issuance with respect to the 2016A Bonds.
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
Since its inception in 1965, the Los Angeles County Museum of Art (LACMA) has been devoted to collecting works of art that span both history and geography, in addition to representing Los Angeles's uniquely diverse population. Today LACMA is the largest art museum in the western United States, with a collection that includes nearly 130,000 objects dating from antiquity to the present, encompassing the geographic world and nearly the entire history of art. Among the museum's strengths are its holdings of Asian art, Latin American art, ranging from pre-Columbian masterpieces to works by leading modern and contemporary artists; and Islamic art, of which LACMA hosts one of the most significant collections in the world.
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
The Infrastructure Bank is an entity within the Governor's Office of Business and Economic Development in the State of California, organized and existing pursuant to the Act. The Infrastructure Bank is authorized and empowered pursuant to the Act to issue the 2016A Bonds, to loan the proceeds thereof to the Corporation, to secure the Bonds by a pledge of the amounts payable by the Corporation under the Loan Agreement and any available amounts held in the funds or accounts established pursuant to the Indenture (other than the Rebate Fund and remarketing proceeds), and to enter into the Loan Agreement and the Indenture.
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
Under the Indenture, the 2016A Bonds, the 2013A Bonds and the 2013 Direct Purchase Bonds and any Additional Bonds issued under the Indenture are secured by a pledge of the Revenues and any available amounts held in the funds or accounts established pursuant to the Indenture (other than the Rebate Fund and remarketing proceeds). The Revenues consist primarily of the Loan Payments to be made by the Corporation under the Loan Agreement.
TrusteeThe trustee is a third-party, often a large bank or financial institution, responsible for all payment flows between an issuer and an investor. This trustee is in charge of processing coupon payments.
U.S. Bank National Association