| Deal Description | The City of Clinton, Iowa, issued bonds to finance the acquisition and construction of certain pollution control facilities (the Project) at or near the Clinton Corn Processing Plant (the Production Complex) of Standard Brands Incorporated (the Company) located within the corporate limits of the City of Clinton, Iowa. The Company operated a corn wet milling plant in the City, which processed corn and produced various corn products. Production at the plant resulted in discharges of waste water to the Mississippi River and emissions to the atmosphere that did not meet applicable pollution control regulations. For the purpose of controlling such discharges and emissions, the City acquired, constructed, and leased to the Company the Project. The Project consisted of a water treatment plant, associated collection lines and pretreatment facilities, the installation of electrostatic precipitators on certain coal-fired boilers, the conversion of certain coal-fired boilers to oil-fired, and dust and vapor handling and control systems to reduce particulate emissions from product drying operations, together with related electrical and mechanical equipment. A portion of the proceeds from this transaction was deposited in the bond fund, which was used to pay interest on the bonds during the estimated construction period of the project. The balance of the proceeds was deposited in the construction fund, which was used to pay the cost of the Project, including reimbursement to the company for any cost of the Project paid by it. All moneys remaining in the construction fund after payment of the cost of the Project was applied to the purchase or redemption of bonds. |
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