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Crockett council replaces paying agent for 2019 USDA bonds to cut annual fees
Summary
Council approved transferring paying-agent services for the city's 2019 USDA revenue bonds from Wilmington Trust (which charged annual fees) to BOKF/Bank of Texas for a one-time $500 fee, reducing ongoing costs.
The City of Crockett approved a resolution to replace the paying agent for its 2019 USDA revenue bonds, a move staff said will lower annual fees.
City staff explained Wilmington Trust had served as paying agent and charged annual fees of roughly $2,000 for one series and $1,000 for another. Staff recommended issuing a termination notice to Wilmington Trust and moving paying-agent services to BOKF (Bank of Texas), which staff said would charge a one-time $500 fee instead of annual charges. Council approved the change by motion; the motion carried.
Why it matters: Staff said the move will reduce recurring annual costs associated with paying-agent services and simplify administration of the USDA loan. No transfers of bond obligations were reported; the change affects paying-agent administrative services only.
Next steps: Staff will issue the termination notice to Wilmington Trust and complete required documentation to appoint BOKF as the paying agent for the USDA loan.
