HomeMy WebLinkAboutCity Council - 6704 RESOLUTION NO. 6704
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH APPROVING SALE OF
MORTGAGE LOANS,APPROVING AND AUTHORIZING AND DIRECTING
EXECUTION OF DOCUMENTS IN CONNECTION THEREVaTH,AND
AUTHORIZING AND DIRECTING RELATED ACTIONS
WHEREAS, the City has issued its $20,000,000 Home Mortgage Revenue Bonds, 1984
Series A (the "Bonds") and has used a portion of the proceeds of the Bonds to acquire mortgage
loans (the "Mortgage Loans') under and pursuant to a Trust Indenture (the "Indenture"), dated
as of July 1, 1984, by and between the City and First Interstate Bank of California, as trustee
(the "Trustee");
WHEREAS, in order to dissolve the single family mortgage housing program (the 1984
Housing Program") established with the proceeds of the Bonds, thereby eliminating the City's
obligations with respect to the administration of the 1984 Housing Program, the City intends to
sell the Mortgage Loans pursuant to a loan purchase agreement (the "Loan Purchase
Agreement")and liquidate the investments held under the Indenture;and
WHEREAS, the City has determined that certain provisions of the indenture are
inconsistent with the provisions of the Code (as defined in the Indenture) and that it is in the
best interest of the City that a supplement to the Indenture now be executed and delivered to
bring the provisions of the Indenture into conformity with the provisions of the Code;and
WHEREAS, the foregoing agreements have been filed with the City Clerk of the City and
it is proper at this time to approve and authorize and direct the execution and delivery of such
agreements in order to consummate the transactions contemplated thereby;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
Section 1. Findings and Determination.
This City Council hereby finds and determines that the sale of the Mortgage Loans as
contemplated by the Loan Purchase Agreement and the amendment of the Indenture are proper
under the Indenture, and serve the public purposes of the City in allowing the City to dissolve
the 1984 Housing Program. The City further finds and determines that the prices at which the
Mortgage Loans will be sold, as shall be described in the Loan Purchase Agreement, shall be
extensively negotiated by the City staff, and, pursuant to such negotiations, the prices shall be
acceptable and reasonable in light of the transactions contemplated thereby and are otherwise
on terms favorable to the City .
Section 2. Approval of Loan Purchase Agreement and Supplemental Indenture.
This City Council hereby approves the Loan Purchase Agreement by and between the
City and Meridian Capital Markets and the Supplemental Indenture No. 1 to the Indenture, (the
"Supplemental Indenture") in the forms on file with the City Clerk. The City Administrator or
his deputy is hereby authorized and directed to execute and deliver the Loan Purchase
Agreement and the Supplemental Indenture,for and in the name and on behalf of the City,with
such changes as he or she, upon consultation with special counsel to the City for the
transaction, shall determine. The City Administrator or his deputy is hereby expressly
authorized to complete the Exhibits to the Loan Purchase Agreement indicating the Mortgage
Loans to be sold thereby. The City Administrator or his deputy is hereby authorized and
directed to disburse any amounts held under the Indenture, as supplemented, pursuant to the
terms of the Indenture. The execution and delivery by the City Administrator or his deputy of
the Loan Purchase Agreement and the Supplemental Indenture shall be conclusive evidence of
the approval of any changes to the forms thereof approved hereby.
Section 3. Authorization to Execute other Documents.
The City Administrator, the Deputy City Administrator and all other officers and
employees of the City are hereby authorized and directed to execute and deliver such
agreements, documents, and certificates, and take such other actions as they, or any of them,
deem necessary or appropriate in order to consummate the transactions contemplated by the
Loan Purchase Agreement and the Supplemental Indenture and this resolution, including the
execution and delivery of any escrow agreements or other agreements or certificates of the City
referred to in the Loan Purchase Agreement. The City Administrator and the Deputy City
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Administrator, each acting alone, are hereby expressly authorized, if necessary, to execute and
deliver assignments of the notes and deeds of trust evidencing and securing the Mortgage
Loans in order to consummate the sale thereof.
Section 4. Effective Date.
This resolution shall take effect from and after its adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 21 st day of August, 1995.
r
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attc rneyP/7-/5'5
REVIEWED AND APPROVED: INITIATE APPROV
f
ity Administrator Deputy City drninis atorl
Administrative Services
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Res. No. 6704
STATE OF CALIFORNIA }
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council of
the City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of said
City Council at a regular meeting thereof held on the 21st of August, 1995 the
following vote:
AYES: Councilmembers: Harman, Bauer, Sullivan, Leipzig, Dettloff,
Green
NOES: Councilmembers: None
ABSENT: Coun0members: Garofalo (out of room)
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City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
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