Pennsylvania Dorm Borrower Taps Reserves for Debt Payment

A bond-financed student housing project at the Indiana University of Pennsylvania didn’t generate enough revenue to cover a July debt payment, causing the trustee to withdraw $972,661.56 from a debt service reserve fund to make the payment, according to a regulatory filing.

• The bonds were sold by the Foundation for Indiana University of Pennsylvania
  • The reserve tap was associated with series 2007a bonds sold by the issuer
• “The Project did not generate sufficient Revenues to fully cover the July 1, 2021, debt service on the Bonds after the payment of Operating Expenses, resulting in an Event of Default under ...