The Chase Manhattan Bank Will Issue 400,000 Checks Under National Tobacco Grower Settlement Trust
NEW YORK--(BUSINESS WIRE)--December 27, 1999--The Chase Manhattan Bank, lead subsidiary of The Chase Manhattan Corporation, announced today that on December 30, 1999, it will mail checks amounting to about $250 million to approximately 400,000 tobacco gro
The Trust was established in September 1999, and during this first year, Chase has agreed to disburse the 1999 payment in two rounds which will provide the state boards with more time to conduct the certification process. This additional time will assist the state boards, which have faced constraints due to this fall's natural disasters and 1999 being the start-up year of the Trust. The Trust was established and will be funded by the four major tobacco manufacturers in the U.S.: Philip Morris Incorporated; R. J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; and Lorillard Tobacco Company.
The tobacco companies agreed with the governors, attorneys general and agriculture commissioners of 14 tobacco producing states to establish a National Tobacco Grower Settlement Trust, whereby they will contribute $5.15 billion, subject to annual adjustments, over the next 12 years. The companies recognized that the Master Settlement Agreement (MSA) between 46 states and the companies is likely to result in the reduction of cigarette consumption in the United States and thereby, have adverse financial effects on the tobacco growers and quota owners.
The Chase Manhattan Bank's Capital Markets Fiduciary Services (CMFS) division was appointed Trustee after a rigorous bidding process. CMFS was able to secure the appointment by demonstrating clear advantages in overall capabilities as well as the management of complex transactions. As Trustee, CMFS' principal responsibility will be to receive, invest and disburse the funds. CMFS is also assisting some of the state boards with their certification process. CMFS formed a multidisciplinary team of specialists from within the Chase organization to manage and administer the program.
With US$371 billion in assets as of September 30, 1999, The Chase Manhattan Corporation is among the largest financial services companies in the world and a leader in developing technology-based solutions for both its wholesale and retail clients. As a full service provider, its Capital Markets Fiduciary Services Division has served the corporate and municipal markets for over 100 years. Capital Markets Fiduciary Services has offices in 31 major cities across the globe. With more than $3 trillion in assets currently under administration, Chase is a leading provider of corporate, municipal and structured debt services to issuers, intermediaries and investors worldwide. Chase can be reached on the Web at www.chase.com.