Cabinet Affairs

1. Approval of minutes of meeting held on April 9, 1996. (Att. #1)

2. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S.:

The Village Center Community Development District (the "District") has submitted a request for approval of an interest rate exception on an issue of Not to Exceed $20,000,000 Village Center Community Development District Recreational Revenue Bonds, Series 1996A (the "Senior Bonds") and Not to Exceed $8,000,000 Village Center Community Development District Subordinate Recreational Revenue Bonds, Series 1996B (the "Subordinate Bonds") (together, the "Bonds.")

The Bonds are being issued for the purpose of financing the acquisition by the District from the Villages of Lake Sumter, Inc. (the "Developer") of various recreational, security and water management facilities, funding a debt service reserve fund and paying the costs of issuing the Bonds. The Bonds will be secured primarily by fees received in regard to recreational facilities being acquired by the District with the proceeds of the Bonds. The Subordinate Bonds will be sold and delivered simultaneous with the sale and delivery of the Senior Bonds which have a lien on the pledged revenues superior to the lien thereon of the Subordinate Bonds. The Bonds shall be limited obligations of the District payable by the District solely from the Trust Estate in accordance with the Trust Indenture. The Bonds shall not constitute an indebtedness of the District, the State or any political subdivision or agency thereof within the meaning of any State constitutional provision or statutory limitation.

The Bonds are being privately placed with the Developer through Prager, McCarthy & Sealy (the "Placement Agent.") A Placement Agent fee of $14 per $1000 of Bonds actually issued will be paid. The interest rate on the Senior Bonds shall not exceed 8.00 percent per annum. The interest rate on the Subordinate Bonds shall not exceed 8.50 percent per annum. The maximum interest rate for the month of April 1996 is 7.40 percent.

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize an interest rate Not to Exceed 8.00 percent per annum for the Senior Bonds and Not to Exceed 8.50 percent per annum for the Subordinate Bonds.

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April 23, 1996
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This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest rate exception, the State Board of Administration has relied upon certain information provided by the Village Center Community Development District. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, the accuracy or completeness of said information. (Att. # 2)

3. INTEREST RATE EXCEPTION PURSUANT TO SECTION 215.84, F.S.:

The Housing Finance Authority of Broward County, Florida (the "Authority") has submitted a request for approval of an interest rate exception on an issue of Not to Exceed $26,600,000 Housing Finance Authority of Broward County, Florida Revenue Refunding Bonds, Series 1996A (Los Prados Project)(the "Bonds.") The Bonds are being issued to restructure and refund the Authority's $26,600,000 Guaranteed Multifamily Housing Revenue Bonds, Series 1985 (the "Series 1985 Bonds.")

The Series 1985 Bonds have been in default since July 1991, when the guarantor, Mutual Benefit Life Insurance Company became insolvent and was forced into rehabilitation, the insurance industry equivalent to bankruptcy proceedings. In 1994, MBL Life Insurance Corporation ("MBL"), a new insurance entity, emerged from the rehabilitation. An agreement reached between MBL, the trustee and the bondholders provides for the restructuring and refunding of the Series 1985 Bonds as follows: (i) The outstanding Series 1985 Bonds will be exchanged (and cancelled) for the Bonds; (ii) General Electric Capital Corporation and Bailey Capital Corporation have agreed to purchase the Bonds held by all the bondholders through a partnership they have created known as "GEBAM"; and (iii) MBL will be released as guarantor of the Bonds. The restructuring of the Series 1985 Bonds was confirmed on March 26, 1996 by an order entered by the United States Bankruptcy Court for the District of New Jersey.

The Bonds are payable solely from the money and assets of the Los Prados Project and do not constitute a debt or obligation of the Authority or Broward County or of the State of Florida or of any political subdivision thereof, and neither the Authority, nor Broward County nor the State of Florida or any political subdivision thereof shall be liable on the Bonds.

Since the ultimate sale of the Bonds is to a single purchaser entity, GEBAM, the purchase by GEBAM constitutes a negotiated sale by private placement. GEBAM

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April 23, 1996
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intends to hold the Bonds as an investment, although it may later offer participation interests to other institutional investors. Unless and until there is a credit enhancement, sale and transfer of the Bonds will be restricted in the following manner: (i) the Bonds cannot be sold or transferred without the written consent of the Authority; (ii) the Bonds can only be sold or transferred to an "accredited investor" as defined by SEC regulation 230.501(a); and (iii) the Bonds can only be sold in denominations of at least $500,000. The Bonds will be issued at an initial interest rate of Not To Exceed 8.23 percent, which will exist for thirty-one days, and will revert to a floating rate thereafter. The maximum interest rate for the month of April 1996 is 7.40 percent.

RECOMMENDATION: The Executive Director recommends that the Board approve an interest rate exception on the Bonds described hereinabove and authorize an initial interest rate Not to Exceed 8.23 percent per annum. This authorization is to in no way be construed as an approval or recommendation of the issue by the State Board of Administration. In granting this interest rate exception, the State Board of Administration has relied upon certain information provided by the Housing Finance Authority of Broward County, Florida. The State Board of Administration has not independently verified and does not intend to independently verify any of this furnished information. The State Board of Administration does not assume any responsibility for, and makes no warranty (expressed or implied) with respect to, the accuracy or completeness of said information. (Att. # 3)

4. THE FLORIDA HURRICANE CATASTROPHE FUND REQUESTS APPROVAL TO ADOPT THE FOLLOWING RULES:

(1) The Florida Hurricane Catastrophe Fund requests that the Trustees approve the adoption of revisions to Rule 19-8.010, regarding the reimbursement contract. The reimbursement contract for the 1996-1997 contract year is substantially the same as the 1995-1996 contract. The proposed amended rule and revised contract were the subject of a public hearing on April 16 and were approved by the advisory Council later that same day. The Joint Administrative Procedures Committee had no comments.

(2) The Florida Hurricane Catastrophe Fund requests that the Trustees approve the adoption of new Rule 19-8.011, regarding loss reimbursement procedures. This rule establishes procedures for the Fund to pay insurers for losses and adopts forms for participating companies to use to report losses to the Fund. The proposed rule was the subject of a workshop on September 21, 1995, and of a public hearing on March 4, 1996. The Advisory Council approved the rule at its meeting on April 16, 1996. The Joint Administrative Procedures Committee had no comments.

AGENDA
April 23, 1996
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5. REPORTS BY THE EXECUTIVE DIRECTOR:

Submitted for information and review are the investment performance and fund balance analysis reports for the month of March 1996. (Att. #5)