Huntington National Bank 2011 Annual Report Download - page 215

Upon receipt of the aforementioned trust preferred securities, Huntington exchanged $32.5 million of the
trust preferred securities with the applicable Trust for a like amount of debentures issued by us. The debentures
were surrendered to the applicable trustee for cancellation. Huntington anticipates exchanging the remaining $3.0
million of trust preferred securities and retiring the related subordinated debt obligation in the first quarter of
2012.
LOW INCOME HOUSING TAX CREDIT PARTNERSHIPS
Huntington makes certain equity investments in various limited partnerships that sponsor affordable housing
projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue
Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of
additional affordable housing product offerings, and to assist in achieving goals associated with the Community
Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and
operation of multi family housing that is leased to qualifying residential tenants. Generally, these types of
investments are funded through a combination of debt and equity.
Huntington is a limited partner in each Low Income Housing Tax Credit Partnership. A separate unrelated
third party is the general partner. Each limited partnership is managed by the general partner, who exercises full
and exclusive control over the affairs of the limited partnership. The general partner has all the rights, powers and
authority granted or permitted to be granted to a general partner of a limited partnership under the Ohio Revised
Uniform Limited Partnership Act. Duties entrusted to the general partner of each limited partnership include, but
are not limited to: investment in operating companies, company expenditures, investment of excess funds,
borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities,
votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts,
insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to
consent to certain transactions, the limited partner(s) may not participate in the operation, management, or
control of the limited partnership’s business, transact any business in the limited partnership’s name or have any
power to sign documents for or otherwise bind the limited partnership. In addition, the general partner may only
be removed by the limited partner(s) in the event the general partner fails to comply with the terms of the
agreement and/or is negligent in performing its duties.
Huntington believes the general partner of each limited partnership has the power to direct the activities
which most significantly affect their performance of each partnership and therefore Huntington has determined
that it is not the primary beneficiary of any LIHTC partnership. Huntington uses the equity or effective yield
method to account for its investments in these entities. These investments are included in accrued income and
other assets. At December 31, 2011 and 2010, Huntington has commitments of $376.1 million and $316.0
million, respectively, of which $322.5 million and $260.1 million, respectively, were funded. The unfunded
portion is included in accrued expenses and other liabilities.
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