| Mortgage | $266,600,300 |
| Prior Reserve Fund | $33,943,514 |
| Total Project | $300,543,814 |
$266,600,300
FHA / GNMA Insured Mortgage Loan
AMS was retained as mortgage banker by Union Health System in Indiana for an advanced refunding of all of Union’s Taxable and Tax-Exempt Debt through an FHA 242/223(f) Insured Mortgage. Union Health System is an integrated delivery system consisting of a Regional Referral Center in Terre Haute, a Critical Access Hospital in Clinton, and a Multispecialty Physician Practice.
The FHA transaction was structured as an “Obligated Group” to allow the affiliated entities to transfer assets between one another without a Transfer of Assets Test. Union Hospital granted a mortgage on all core hospital property and signed the Regulatory and Security Agreements along with the Health System and Physician Practice.
The FHA Insured Mortgage was funded with taxable GNMA Securities allowing Union to save $147,897,309 in interest expense over the life of the loan. The substantial savings coupled with the unique structure and lack of affirmative covenants made the FHA transaction an attractive option for Union Health System.
