According to a recent Associated Press report, Bank of America must assume Countrywide Financial’s contract to create 7,500 new jobs in Texas if it wants to move forward with its plan to acquire the nation’s largest mortgage lender.
In 2004, Countrywide entered into one of the largest job-creation agreements ever with the Texas Enterprise Fund. Countrywide received $20 million in state taxpayer money in return for the promise to create 7,500 new jobs by the end of 2010. The AP obtained a copy of the agreement, which states that it “shall survive any sale, change of control or similar transaction involving Countrywide.”
Bank of America recently announced that it is acquiring Countrywide for $4.1 billion in stock, meaning it would have to fulfill the contract, according to Allison Castle, spokeswoman for Gov. Rick Perry, because “it’s clearly defined that the new company will be obligated to the terms of the agreement.”
A spokesman for Charlotte, NC-based Bank of America said the company had just started to review Countrywide’s commitments and was still at an early stage in the process.