So, with the recent 8k filing, I get that the 2nd amendment means that BOA has agreed to be a lender to CCI, but for how much? And why does the bank agreeing to lend to CCI mean that CCI can keep getting Title IV funds? This is a serious question, I'm just trying to understand how this works.
11 replies (most recent on top)
094, WTF are you talking about?
070, way to go! Answering your own question. You are very stealthy!
I'm OP. 023, thank you! That makes much more sense, I just didn't understand the connection between the DOE and the banks. I g wet it now.
Does anyone else want to back up and spray to mark territory? LMAO.
023 and 026, most people can't buy time. But it appears that COCO has done just that. Your insight regarding "toward what end?" ........? I am sure it is in the best interest of students, given the SOS effort, ETC.
41023, nice recap. Thanks.
BofA didn't agree to be a lender. They already are a lender and CCI owes them a ton of money. CCI also owes all their other lenders a ton of money. The filing is just that the banks agreed to the operating agreement. Nobody is going to lend CCI any more money, I promise that.
The original Operating Agreement was signed by all involved parties (CCi, DOE, and all lenders to which we owe money). Then CCi couldn't quite meet the requirements of that agreement so they submitted a First Amendment to the Operating Agreement. All interested parties also signed this amendment, agreeing to the changes that were made. It specifically stated in that first amendment that there was to be NO second amendment; the interested parties did not want any more changes to the operating agreement and CCi better do what they agreed to do. IF CCi did file a second amendment they would be in default and all their Title IV would end. Well, no surprise, Jack Assamino decided to go ahead and file a second amendment anyway because he couldn't live up the agreements he made the other times. When that second amendment was filed (the 8K on the 19th) it did NOT have the signatures of all the lenders/banks. The filing stated that if CCi did not get the signatures by the deadline of the 25th, then they were in default. CCi did indeed get the lenders to agree to this second amendment as well. That's what the filing on the 26th was saying: all signatures were obtained, all partied were in agreement, so CCi is not in default and they can still get their Title IV. Make more sense?
See first draft of memo posted Saturday
It's an agreement by the banks not to find CCi in default.
BoA approved the agreement cci signed with DOE. If they had not approved it Tit IV funding would have ended. That's all