Sacramento County Tobacco Securitizaton Corporation

The Sacramento County Tobacco Securitization Corporation functions as an entity that purchases the county's right to receive Tobacco Settlement Revenues (TSRS), borrows funds to pay for these revenues, and secures the borrowings with the TSRS. Once the purchase is complete, the corporation receives the TSRS and any residual payments, invests the funds, and incurs expenses. In simpler terms, the Sacramento County Tobacco Securitization Corporation acts as an intermediary for the county to access its Tobacco Settlement Revenues and manage them effectively.

The corporation's primary mission is to facilitate the purchase of the county's right to receive Tobacco Settlement Revenues. It accomplishes this by borrowing necessary funds and securing the borrowings with the TSRS. Once the purchase is made, the corporation takes receipt of the TSRS and any residual payments and proceeds to invest the funds and cover expenses. By executing these tasks, the Sacramento County Tobacco Securitization Corporation enables the county to benefit from its Tobacco Settlement Revenues while also ensuring the timely repayment of the borrowed funds.

The Tobacco Settlement Revenues are obtained from the State of California as compensation for the county's losses due to tobacco-related health issues. The Sacramento County Tobacco Securitization Corporation plays a crucial role in managing these revenues by making semi-annual payments on the loan with the Tobacco Securitization Authority of Northern California. The Authority, in turn, issues bonds to fund the corporation's purchase of the county's Tobacco Settlement Rights. The funds received from the corporation are then used to pay the bondholders. Thus, the Sacramento County Tobacco Securitization Corporation serves as a vital bridge between the county and the Tobacco Settlement Revenues, ensuring the county's financial stability and the timely repayment of its debts.