It looks like you're using an Ad Blocker.

Please white-list or disable in your ad-blocking tool.

Thank you.


Some features of ATS will be disabled while you continue to use an ad-blocker.


Help ATS via PayPal:
learn more

Need Loan, Will Pay - ( 100% Interest-Rate? ) ...

page: 1

log in


posted on Feb, 22 2015 @ 10:15 PM

An action that California’s Napa Valley Unified School District took in 2009 is just now getting exposure, and at least one board member said that if it had been a private deal (not a taxpayer-backed one), he would be running for cover. Jose Hurtado, a NVUSD board member, said he stands by the deal he voted for — to borrow $29 million and put off paying it back until 2049 — but if it were a traditional mortgage, he “would run” away from it.

More than 400 school districts and other agencies have racked up $9 billion in CAB debt and, by his calculations, the total when the “surprise loans” come due will be $36 billion.


9 ballooning to 36 MIGHT be a-bit ... CONSERVATIVE:

Neither Napa nor Alvord has gone to the excesses that Poway United School District did in 2011 when it used CABs to borrow $105 million, which will balloon to $982 million when it’s due, a payback rate of more than nine times the original loan.

Not be outdone, the Santee School District borrowed a paltry $3.5 million, which will balloon to just under $60 million, or more than 16 times the original loan.
Capital Appreciation Bonds: Delaying the Inevitable -

In 2009, the lenders' lobbying group than proposed and promoted AB1388, a California bill eliminating the debt ceiling requirement on long-term debt for school districts. After it passed, bankers traveled all over the state pushing something called "capital appreciation bonds" (CABs)] as a tool to vault over legal debt limits. (Think Greece again.) Also called payday loans for school districts, CABs have now been issued by more than 400 California districts, some with repayment obligations of up to 20 times the principal advanced (or 2000%).


In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive.

In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy -- for capital "improvements" that will by then be obsolete and need to be replaced.

Swimming with the Sharks


An Example of ... TaxPayers NOT Paying-Attention?

( or how to learn from others' ... successes or failures )


Now, I'm going ... Back-to-REALITY.

edit on 22-2-2015 by FarleyWayne because: (no reason given)

posted on Feb, 22 2015 @ 10:44 PM
a reply to: FarleyWayne

Between them and the IMF I think I would go to a Mafia loan shark first.They at least expect the loan to be paid back,so they know they can only charge so much.

posted on Feb, 22 2015 @ 11:18 PM
a reply to: FarleyWayne

This is just freaking sick, evil, disgusting, pathetic, and so many more freaking bad words I want to say. What the hell kind of person are you to do this? If at all a person, I'm thinking a demon or soulless beast. Absolutely pathetic and the board members that signed the dotted line are ten times worse. Talk about retroactively destroying the future for our children. Sick sick sick.

posted on Feb, 22 2015 @ 11:39 PM
I would be willing to bet that the majority of these loans will be defaulted on by the school districts. I know I wouldn't invest even $1 in this scam.

posted on Feb, 23 2015 @ 12:16 AM
They better not villify the bankers. They were idiots for signing on the dotted line for those loans. While they're at it, I have some magic beans to sell...

posted on Feb, 23 2015 @ 01:20 AM
Was just in LA. My wife's family tried to get me to move there. This is exactly the stuff that prevents me from considering it.

posted on Feb, 23 2015 @ 01:42 AM
a reply to: IWant2Believe323

Screw the bankers!!

Who do you think lobbied to make such lending practices legal in the first place??

They're praying on people who are desperate and creating future chaos that will hurt millions. Screw them and everyone else involved with this including those who signed it.

posted on Feb, 23 2015 @ 01:48 AM
Sounds a little like usury on steroids ..... these bankers are sitting around high fiving each other thinking their pretty damn smart at this point,it will be a damn shame when they end up being mysteriously suicided

posted on Feb, 23 2015 @ 01:49 AM
a reply to: FarleyWayne

So, these 'loans' come due in 34 yrs., just in time for their kids and grandkids to pay them back. Cost of living planning on being THAT much higher?

This is just awful. I can barely eat my ice cream now!

posted on Feb, 23 2015 @ 01:08 PM

originally posted by: RobinB022
a reply to: FarleyWayne

So, these 'loans' come due in 34 yrs., just in time for their kids and grandkids to pay them back. Cost of living planning on being THAT much higher?

This is just awful. I can barely eat my ice cream now!

I doubt that those schools will even be open at that late date.

Bankers seem to think they can ride their corruption forever but fail to realize that the people are going to shut them down eventually.

34 years? Good luck collecting on that.


posted on Feb, 23 2015 @ 01:18 PM
Yea, but you see the people MAKING these loans get their taste now. They could care less what happens 34 years from now. It's the same behavior that fueld the '07-'08 collapse. Lend or leverage at all costs and no worries about what happens down the road --- as long as I get my money now. Considering the Board Members have a fiduciary duty to the school districts I would think there would be some monumental class-action lawsuits here in the form of The Taxpayers v. The School Board. As for the people cooking-up these schemes well they should be publicly hanged. Or wood chippered.

posted on Feb, 26 2015 @ 12:59 AM
a reply to: jude11

I have a feeling these towns will exist in 34 years.

new topics


log in