The name is Bond. Capital Appreciation Bond

Call me CAB for short. Just when you thought creative financing died years ago, it got resurrected over Halloween of 2017. Refinancing a CAB with yet another CAB was put on the table by our school district from an unsolicited bid by a bond underwriter. The same bond underwriter that financed the $12 million construction of Havens with a $64 million tax liability using a compounding interest CAB. I’m glad this CAB is the subject of refinancing but only with a current interest bond (CIB) not another CAB.


Moratorium on CABs

KNN Public Finance is the outside consultant that Piedmont Unified uses to help craft bond measure options.

KNN Public Finance is also used by the San Leandro School District.

In one of the reports KNN did for San Leandro, KNN stated a moratorium on CABs was issued to all School Districts in California:

On January 17, 2013, State Superintendent of Public Instruction Tom Torlakson and State Treasurer Bill Lockyer sent a letter to all school districts asking for a “moratorium” on issuing CABs until the Legislature and the Governor decide on reforms.


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