HomeMy WebLinkAbout1982-04-06; City Council; Resolution 68409
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RESOLUTION NO. 6840
AUTHORIZING THE DEPOSIT OF FUNDS FROM THE CONTINGENCY ACCOUNT WITH THE SELECTED REHABILITATION PROGRAM DEPOSITORY
WHEREAS, the City Council of the City of Carlsbad has authorized the use
of Community Development Block Grant funds for the establishment of a local
rehabi 1 i tation program, and
WHEREAS, the City of Carlsbad and the County of San Diego have agreed to
provide local rehabilitation services through the Community Development Block
Grant program, and
WHEREAS, the City of Carlsbad must select a depository to assist in the
administration of the rehabilitation loan process, and
WHEREAS, the timely depositing of funds with the selected depository will
guarantee rapid implementation of the local rehabilitation program, and
WHEREAS, the City of Carlsbad desires to immediately deposit $134,189
from the contingency account with the selected depository, this amount to be
reimbursed within three weeks from the Block Grant fund;
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0 0
NOW, THEREFOREy BE IT RESOLVEDy that the City Council of the City of Carlsbad
shall approve the Rehabilitation Agreement with the Bank of merica and shall
deposit $134,189, with this depository from the City's contingency account.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad on this 6th day of April 1982, by the following vote
to wit:
AYES: Council Members Packard, Casler, hear, Lewis and Kulchin
NOES: None
ABSTAIN: None
ABSENT: None
RONALD C. PACKARD, Mayor
(Seal 1
Exhibit "E" 0
COMMERCIAL AND RES I DENT I AL PROPERTY REHABILITATION LOAN AGREEMENT COMPREHENSIVE FORM
THIS AGREEMENT is made by the CITY OF CARLSBAD, a political
subdivision in the State of California, herein called "Authority," and
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a national bank-
ing association, herein called "Bank."
RECITALS
A. Authority has authorized a Housing Preservation Program
and a Commercial Property Rehabilitation Program as part of an adopted
Community Development Block Grant Program (as may be amended and modi-
fied from time to time) hereinafter collectively called "Program."
B. As part of Authority's implementation of Program, Author-
ity has requested Bank to make below-market interest rate property re-
habilitation loans ("Loans" or "Program Loans") to certain owners/tenants
of real property within Authority and approved by Authority as recipients
of Loans ("Applicants"). The purpose of the Loans will be the rehabili-
tation of real property in accordance with Program.
ity has requested a choice of several types of Loans to Applicants.
In addition, Author-
C. To support these objectives, and based on an initial de-
posit of Community Development Block Grant funds, Bank is willing to
provide Authority and Applicants with Collateralized Loans for Resi-
dential Property Improvement (Part Three) , Collateralized Loans for
Commercial Property Improvement (Part Four) , Deferred Payment Loans
(Part Five), and other services at rates and terms not available to the
general public or to Authority independent of this Agreement.
NOW, THEREFORE, for an in consideration of the foregoing and
the mutual agreements made herein, and for other good and valuable con-
sideration, Authority and Bank agree as follows:
PART ONE
DEPOSIT OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
1. Authority shall deposit $134,189 of Community Development
Block Grant rehabilitation funds available to Authority under the Hous-
ing and Community Development Acts of 1974 and 1977, as amended, as part
of this Agreement.
2. Authority's deposits of Community Development Block Grant
funds may be made in any of the following forms:
(a) A deposit to the Warehouse Account, the funds in
which are unallocated to Loans.
(b) A deposit to Collateralized Loan Account (s) which
are noninterest-bearing savings accounts which subsidize Loans
and are pledged as Loan collateral.
(c) The purchase from Bank of time certificate (s) of
deposit, the proceeds of which are allocated to future Program
Loans.
Bank will pay, at Authority's election, the highest interest rate per-
mitted by law and this Agreement on all account described above.
legal interest rate limitations are changed, Bank will pay its highest
rate offered to the public,
If
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3. Authority relinquishes the use of and control over ac-
counts described in paragraph 2(b).
for the Loan purposes described in this Agreement.
This account(s) will be used only
4.
which are unallocated to existing Program Loans.
5.
Authority retains full accessibility to all deposits
Authority agrees all interest earnings will be paid to
the Warehouse Account and will become immediately available for the sub-
sidy of Loans.
PART TWO
APPLICATION PROCEDURES
6. At the request of Authority, Bank, through its Carlsbad-
El Camino Real Branch, shall consider making Loans to qualified Appli-
cants directed to Bank by Authority. Bank shall notify the respective
Applicant(s) in writing of any such request it receives from Authority.
The notification shall contain the following statement:
Carlsbad has requested the Carlsbad-El Camino Real Branch of Bank of
America National Trust and Savings Association, 2550 El Camino Real,
Carlsbad, California 92008, to consider making a specific extension of
credit to you."
"The City of
A qualified Applicant shall be identified by Authority
or its agents, using Authority's established standards, which must con-
sider, without limitation:
(a) For each improvement Loan Applicant:
(1) Applicant is "the owner of record" of the
property subject to rehabilitation.
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(2) Applicant has verifiable income(s) which can
be used to repay the proposed Loan.
(3) Authority has determined that the proposed
Loan, given Program options available, will best serve the
rehabilitation needs of Applicant and the Program objectives.
(b) In addition, each commercial improvement/rehabilita-
tion Loan Applicant, if a lessee, has a lease which, with options,
extends at least six (6) months beyond the maturity of the proposed
Loan.
7. Authority shall furnish to Bank, with respect to each
Loan application:
(a) an introductory letter stating that Applicant qua-
lifies for Loan consideration, based on minimum standards in para-
graph 6, and that Authority desires Bank to consider making a Loan
to Applicant;
(b) a breakdown of the costs involved in the rehabili-
tation work to be performed on Applicant's real property;
a description of the work;
an estimate of the value of the real property of-
(c)
(d)
fered as security for the Loan, or a statement that the Loan is
to be unsecured;
(e) a copy of any contractor bid proposed to, or ac-
cepted by, Applicant;
(f) a statement including the name of the contractor
selected by Applicant who will perform the rehabilitation work,
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and that Authority knows no reason to disqualify the contractor
from program participation; and
(b) for each commercial improvement/rehabilitation Loan,
Authority shall also furnish to Bank, with respect to each Loan Ap-
plicant;
(1) 2-year business income statements supported
by IRS income tax filings;
(2) a copy of the existing lease, if Applicant is
a property tenant; and
(3) Applicant's personal financial statement.
Bank shall perform its customary credit evaluation with 8.
respect to Applicant, render its judgment with respect to the credit-
worthiness of Applicant, and recommend appropriate Loan terms.
9. Upon completion of its credit evaluation, Bank shall fur-
nish to Authority a recommendation whether to proceed with the Loan or
not, including:
(a) a recommendation as to use of either Collateralized or
Deferred Payment Loan, or some combination thereof; and
(b) an indication of which of the following Loans (for
which Bank assumes part of the credit risk, as indicated paren-
thetically below) Bank is willing to make to Applicant::
(1) for residential property improvement Loans:
(i) a 6.75% Collateralized Loan (30% credit
risk); or
(ii) a 12.00% Collateralized Loan (70% credit
risk).
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(2) For commercial property improvement Loans: a
12.00% Collateralized Loan (65% credit risk).
10. After having determined the exact nature and scope of the
rehabilitation work to be performed on Applicant's real property, Author-
ity may request Bank to grant Applicant a Loan, which either must be from
among those designated by Bank pursuant to paragraph 9(b) above or must
be a Loan pursuant to paragraph ll(a) (100% collateralized) or Part Five
(Deferred Payment Loan).
PART THREE
COLLATERALIZED LOANS FOR
RESIDENTIAL PROPERTY IMPROVEMENT
11. Each Collateralized Loan shall be supported by a deposit,
as described below, made by Authority to a Collateralized Loan Account.
These accounts shall at all times be at least equal to:
(a) 100% of unpaid principal for each 3.00% Loan for
which Bank has not designated Applicant (pursuant to paragraph
9(b)(l)) as a party to whom Bank is willing to make a (partially)
Collateralized Loan;
(b) 70% of unpaid principal for each 6.75% Loan;
(c) 30% of unpaid principal for each 12.00% Loan;
plus, in each case, 100% of accrued unpaid interest.
assigns the Collateralized Loan Account to secure the Collateralized
Loans.
Authority hereby
12. (a) Unless Authority requests one note only, each Ccl-
lateralized Loan shall be evidenced by two notes, effective in suc-
cession, as provided herein.
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(b)
mercial note, the term of which shall coincide approximately with
the rehabilitation period (although all references herein to the
short-term commercial note are singular, a Loan could include more
than one short-term commercial note).
term commercial note may not exceed ninety (90) days, although the
note may be extended, renewed, or refinanced. The Loan proceeds
thereof shall be disbursed by Bank in a number of draws, each to
follow completion of an applicable state of construction, as cer-
tified to Bank by Authority.
disbursed portion of the Loan.
The note first effective shall be a short-term com-
The term of any one short-
Interest shall accrue only on the
(c) Promptly after Bank's disbursement of the final draw
under the short-term commercial note, that note shall be refinanced
by an installment note, as provided for at subparagraph (e) below
or, alternatively, as provided for in Part Five, Deferred Payment
Loans. At the time the short-term commercial note is refinanced by
the installment note, Applicant may either pay Bank the accrued in-
terest on the short-term commercial note or may have it added to the
principal of the installment note.
(d) As part of its normal credit accommodations, Bank
will make creditor life and disability insurance available to each
Applicant. Insurance will be at Applicant's option, subject to
standard qualifications and premiums.
are subject to change without prier notice. In the case of de-
faulted Loans, Authority agrees to guarantee unpaid premiums in
accordance with the provisions of paragraph 15 below.
Qualifications and premiums
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(e) The term of the installment note will be determined
by Bank for the Loan in question, but may not exceed 15 years, and
the installment note shall be amortized in equal monthly install-
ments over its term. Interest will be calculated on a simple in-
terest basis for each installment note.
13. With respect to Collateralized Loans:
(a) On both the short-term commercial note and the in-
stallment note, interest and other finance charges, as defined in
the Federal Truth in Lending Act and Regulation Z thereto, shall be
such as to result in an Annual Percentage Rate, as defined in that
Act and Regulation, of 3.00% or 6.75% or 12.00%.
(b) The Loan shall be documented using Bank's standard
forms .
(c) Both the short-term commercial note and the install-
ment note shall, at Bank's or Authority's option, be secured by a
deed of trust covering the real property that is the subject of the
rehabilitation for which the proceeds of the Loan are to be used.
14. Authority shall make a relevant deposit to the Collateral-
ized Loan Account in the percentage of Loan amount provided for at para-
graph 11, when the commercial note and deed of trust, if any, are signed
by Applicant and when interest on a short-term commercial note becomes
added to the principal of a subsequent installment note. At the end of
each calendar month ending 180 days after Authority's first deposit here-
under, Bank shall remit to Authority the amount by which the Collateral-
ized Loan Account exceeds the paragraph 11 percentages of the unpaid
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balances of Collateralized Loans. Funds that Bank thus remits to Author-
ity shall be deemed funds that Authority deposited at least 180 days be-
fore.
15. If a Collateralized Loan remains in default for a continu-
ous period of ninety (90) days on account of nonpayment of any sum of
money due pursuant to the terms thereof or of any instrument or document
related thereto, Bank may withdraw from the Collateralized Loan Account,
and pay to itself, an amount equal to the then outstanding principal bal-
ance of the Loan multiplied by the same percentage as the percentage of
the Loan amount that was deposited to the Collateralized Loan Account
pursuant to paragraph 11, plus 100% of accrued unpaid interest on the
Loan, together with insurance premiums, if any, accrued through the 90th
day of default.
Collateralized Loan Account for any amounts in excess of those permitted
under this paragraph. During any ninety (90) day default period, Bank
shall perform its customary collection procedures with respect to the
Loan.
Bank shall have no recourse against Authority or the
16. After a withdrawal from the Collateralized Loan Account
under paragraph 15 above, in the case of a Loan for which the deposit to
the Collateralized Loan Account under paragraph 11 was less than 100% of
the Loan amount:
(a) Bank need not assign the deed of trust to Authority
upon completion of the withdrawal, but may, for its own account,
exercise rights under the deed of trust to recover the remaining
outstanding and unpaid principal of the Loan plus accrued unpaid
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interest thereon together with insurance premiums, if any, accrued
after the 90th day of default.
(b) At its election, Bank may assign to Authority such
rights as may be necessary for Authority to attempt to recoup any
funds withdrawn from the Collateralized Loan Account in connection
with any Loan default.
(c) If Bank subsequently recovers funds with respect to
a defaulted Loan (as, for example, but without limitation, if a
voluntary sale of the property takes place), Bank shall, after de-
ducting the previously unreimbursed percentage of Loan loss to
which Bank is entitled, plus Bank's costs of recovery, return and
pay over to Authority all amounts in excess thereof,
17. After a withdrawal from the Collateralized Loan Account
under paragraph 15 above, in the case of a Loan for which the deposit to
the Collateralized Loan Account under paragraph 11 was 100% of the Loan
amount, Bank shall assign the Loan to Authority, the assignment to be ac-
complished by:
(a) the due endorsement by Bank to Authority of the
promissory note evidencing the Loan, without recourse or warranty;
and
(b) the delivery of the promissory note and the assign-
ment and delivery of the deed of trust.
18. Collateralized Loans, as described in paragraphs 11 through
17, must have an average original Loan amount of $10,000.00.
Collateralized Loans will be analyzed every 180 days from contract ap-
proval. If average $10,000 Loan amounts are not maintained, Bank may:
Authority's
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(a)
(b) increase collateral requirements for new Loans; or
(c)
increase borrower interest rates for new Loans;
assess an origination fee for new Loans.
PART FOUR
COLLATERALIZED LOANS FOR
COMMERCIAL PROPERTY IMPROVEMENT
19. Each Collateralized Loan shall be supported by a non-
interest-bearing deposit made by Authority to a Collateralized Loan Ac-
count, an account that shall at all times be at least equal to 35% of
the unpaid principal for each 12.00% Loan, plus 100% of accrued unpaid
interest. Authority hereby assigns the Collateralized Loan Account to
secure the Collateralized Loans.
20. (a) Unless Authority requests one note only, each Col-
lateralized Loan shall be evidenced by two notes, effective in sue-
cession, as provided herein.
(b) The note first effective shall be a short-term com-
mercial note, the term of which shall coincide approximately with
the rehabilitation period (although all references herein to the
short-term commercial note are singular, a Loan could include more
than one short-term commercial note). The term of any one short-
term commercial note may not exceed ninety (90) days, although the
note may be extended, renewed, or refinanced. The Loan proceeds
thereof shall be disbursed by Bank in a number of draws, each to
follow completion of an applicable state of construction, as cer-
tified to Bank by Authority. Interest shall accrue only on the
disbursed portion of the Loan.
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(c) Promptly after Bank's disbursement of the final draw
under the short-term commercial note, that note shall be refinanced
by an installment note, as provided for at subparagraph (e) below
or, alternatively, as provided for in Part Five, Deferred Payment
Loans. At the time the short-term commercial note is refinanced by
the installment note, Applicant may finance the accrued interest on
the short-term commercial note.
(d) As part of its normal credit accommodations, Bank will
make creditor life and disability insurance available to each Appli-
cant subject to standard qualifications and premiums, which qualifi-
cations and premiums are subject to change without prior notice.
However, if Applicant does not qualify for or elects not use the
creditor life and disability insurance offered by Bank, Applicant
shall be required to obtain a policy of Creditor Life Insurance,
in a form acceptable to Bank while any part of the Loan remains out-
standing, in an amount at least equal to the amount outstanding un-
der the Loan to Applicant, with Bank named as beneficiary.
Authority's request, said insurance shall be prepaid from Loan pro-
ceeds and said amount added to the principal amount of the Loan.
At Bank's request, each Applicant shall also be required to main-
tain a standard policy of hazard insurance covering the real pro-
perty upon which the rehabilitation work is to be performed in
effect while any part of the Loan remains outstanding, with Bank
named as beneficiary. In the case of defaulted Loans, Authority
agrees to guarantee unpaid premiums in accordance with the provi-
sions of paragraph 23 below.
Upon
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(e) The term of the installment note shall be determined
by Bank for the Loan in question, but may not exceed
years, and the installment note shall
ly installments over its term.
simple interest basis for each installment note.
be amortized in equal month-
Interest will be calculated on a
21. With respect to Collateralized Loans:
(a) On both the short-term commercial note and the in-
stallment note, interest and other finance charges, as defined in
the Federal Truth in Lending Act and Regulation Z thereto, shall
- be such as to result in an Annual Percentage Rate, as defined in
that Act and Regulation, of 12.00%.
(b) The Loan shall be documented using Bank's standard
f oms.
(c) Both the short-term commercial note and the install-
ment note may, at Bank's or Authority's option, be secured by a deed
of trust covering the real property that is the subject of the re-
habilitation for which the proceeds of the Loan are to be used.
22. Authority shall make a relevant deposit to the Collateral-
ized Loan Account in the percentage of Loan amount provided for at para-
graph 19 when the commercial note and deed of trust, if any, are signed
by Applicant. At the end of each calendar month ending 180 days after
Authority's first deposit hereunder, Bank shall remit to Authority the
amount by which the Collateralized Loan Account exceeds the paragraph
19 percentage of the unpaid balances of Collateralized Loans. Funds
that Bank thus remits to Authority shall be deemed funds that Author-
ity deposited at least 180 days before.
23. If a Collateralized Loan remains in default for a continu-
ous period of ninety (90) days on account of nonpayment of any sum of
money due pursuant to the terms thereof, or of any instrument or docu-
ment related thereto, Bank may withdraw from the Collateralized Loan
Account, and pay to itself, an amount equal to the then outstanding prin-
cipal balance of the Loan multiplied by the same percentage as the per-
centage of the Loan amount that was deposited to the Collateralized Loan
Account pursuant to paragraph 19, plus 100% of accrued unpaid interest
on the Loan, together with insurance premiums, if any, accrued through
the 90th day of default.
or the Collateralized Loan Account for any amounts in excess of those
permitted under this paragraph. During any ninety (90) day default per-
iod, Bank shall perform its customary collection procedures with respect
to the Loan.
Bank shall have no recourse against Authority
24. After a withdrawal from the Collateralized Loan Account
under paragraph 23 above:
(a) Bank need not assign any deed of trust to Authority
upon completion of the withdrawal but may, for its own account,
exercise rights under the deed of trust, note, or other instrument
in Bank's possession to recover the remaining outstanding and un-
paid principal of the Loan plus accrued unpaid interest thereon
together with insurance premiums, if any, accrued after the 90th
day of default.
(b) At its election, Bank may assign to Authority such
rights as may be necessary for Authority to attempt to recoup any
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funds withdrawn from the Collateralized Loan Account in connection
with any Loan default.
(c) If Bank subsequently recovers funds with respect to
a defaulted Loan (as, for example, but without limitation, if a
voluntary sale of the property takes place), Bank shall, after de-
ducting the previously unreimbursed percentage of Loan loss to which
Bank is entitled, plus Bank's cost of recovery, return and pay over
to Authority all amounts in excess thereof.
25. Collateralized Loans, as described in paragraphs 19 through
24, must have an average original Loan amount of $10,000.00,
Collateralized Loans will be analyzed every 180 days from contract ap-
proval. If average $10,000 Loan amounts are not maintained, Bank may:
Authority's
(a) increase borrower interest rate for new Loans;
(b) increase collateral requirements for new Loans; or
(c) assess an origination fee for new Loans.
PART FIVE
DEFERRED PAYMENT LOANS
26. In the event Authority requests Bank to make a Loan, the
terms of which are other than as provided in Parts Three and Four, Bank
shall comply with Authority'.~ request. In that case, after Bank has ob-
tained Applicant's note on terms Authority has requested for the Loan,
Bank shall, promptly after completion of the respective rehabilitation
work, assign the Loan to Authority according to the same procedure, and
for the same price, as would be applicable under paragraphs 15 and 17
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.'L , \.
(Part Three) in the case of the assignment following default of
lateralized Loan for which the deposit to the Collateralized Loan Account
under paragraph 11 was 100%. Promptly after the assignment, Authority
shall pay to Bank a fee to cover its internal administrative and out-of-
pocket expenses, as specified by Bank, but in no event less than THIRTY-
SEVEN DOLLARS AND 50/100 ($37.50) nor more than SEVENTY-FIVE DOLLARS
($75.00) for each Loan so made.
pense and shall not be recovered from Applicant.
a Col-
Such fee shall be Authority's sole ex-
27. Prior to the making of the first Deferred Payment Loan,
Authority shall furnish to Bank an opinion of its legal counsel:
(a) stating that Authority has established rates and
terms for its Deferred Payment Loan Program note;
(b) designating whether any Deferred Payment Loan fee
is a "charge to be financed'' or a "prepaid finance charge" under
Regulation Z; and
(c) that Authority has delivered this information and
its note to Bank's Carlsbad-El Camino Real Branch.
PART SIX
GENERAL PROVISIONS
28. On Authority'.s request, Bank shall, for its customary fees
therefore, accept for collection purposes, pursuant to Bank's then cur-
rent installment procedures, a Program Loan that has been transferred to
Authority.
29. On Authority's request, Bank shall, for its customary fees,
provide foreclosure services with respect to a defaulted Program Loan
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that has been transferred to Authority, in which case Bank shall be sub-
stituted for continental Auxilary Company/Authority as trustee under
the applicable deed of trust.
30. (a) This Agreement shall expire 1 November 1982. This
Agreement may be terminated or amended through mutual acceptance
by either of the parties hereto at six (6) month intervals from
1 November 1981 provided written notice of intent to amend or ter-
minate is given to the other party at least fifteen (15) days prior
to the amendment or termination date.
(b) Any termination of this Agreement shall not affect
program Loans outstanding at the time of termination.
(c) At termination, Bank shall retain the Collateral-
ized Loan Accounts and shall remit monthly to Authority the amount
by which the Collateralized Loan Accounts exceed the paragraph 11
(Part Three) and paragraph 19 (Part Four) percentages of the unpaid
balances of Coll ateral ized Loans.
31. Bank covenants and agrees that nothing in this Agreement
or any agreement made pursuant hereto shall be deemed or construed by
Bank to make Authority a surety or guarantor of any Loan, and that Bank's
rights with respect to a Collateralized Loan shall be limited to those
set forth in Part Three and Part Four hereof.
32. Authority and Bank shall comply with all applicable stat-
utes and regulations, including without limitation, where applicable,
the Federal Truth in Lending Act and Regulation Z thereto, the Consumer
17
Credit Reporting Act, and the Equal Credit Opportunity Act and Regula-
tion B thereto.
33. Except as specifically required by this Agreement, Author-
ity waives any right it may have to require Bank to:
(a)
(b)
the relevant Loan; or
(c)
proceed against any Applicant or other person;
proceed against or exhaust any collateral for
pursue any other remedy in Bank's power;
and waives any defense arising by reason of any disability or other de-
fense of Applicant or any other person, or by reason of the cessation
from any cause whatsoever, other than full payment, of the liability of
an Applicant or any other person.
34. Bank and Authority acknowledge the "Special Purpose" na-
ture of the Program and Program Loans. To serve this "Special Purpose,"
a Loan shall be considered in default after the date of a transfer of
the deed of trust property which, according to the provisions of the note,
make the entire principal and interest of the note due and payable, re-
gardless of Bank's ability or inability to enforce those provisions of
the note.
35. Any communications between the parties hereto may be given
by mailing same, postage prepaid, to Bank at its Carlsbad-El Camino Real
Branch, 2550 El Camino Real, Carlsbad, California 92008, and to Author-
ity at its Office of Community Development, City of Carlsbad, City Hall,
1200 Elm Avenue, Carlsbad, California 92008, or to such other addresses
as either party may in writing hereafter indicate.
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36. This Agreement and any agreement, document, or instrument
attached hereto or referred to herein integrate all terms and conditions
mentioned herein or incidental hereto, and supersede all oral negotia-
tions and prior writing in respect to the subject matter hereof.
event of any conflict between the terms, conditions, and provisions of
this Agreement and any such agreement, document, or instrument, the
terms, conditions, and provisions of this Agreement shall prevail.
In the
37. Authority shall indemnify and hold harmless Bank against
all claims and damages, alleged or otherwise, of whatsoever nature, aris-
ing out of or in any way connected with the acts or omission of any con-
tractor performing rehabilitation work in connection with this Agreement;
provided, however, that Authority's obligations under this paragraph
shall not extend to negligent or wilful acts or omissions by Bank. All
contractors shall operate as independent contractors and nothing herein
is intended to affect such independent contractor status.
38. Bank may, at its option, decline to make additional Loans
from and after the date when the principal balance of all Loans outstand-
ing has exceeded FIVE HUNDRED THOUSAND DOLLARS ($500,000.00).
39. This Agreement may be executed in as many counterparts as
may be deemed convenient, each of which, when executed, shall be deemed
an original.
40. The operating aspects of this Agreement, including but
not limited to target area boundaries, may be altered from time to time
through a letter of understanding, accepted mutually by Authority's Dir-
ector of Community Development and Bank's City Improvement and Restora-
tion Program (CIRP) Department, Oakland, California.
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IN WITNESS WHEREOF, this Agreement is executed by Authority
acting by and through its
pursuant to Resolution No.
and by Bank.
Y
authorizing such execution ,
Dated this day of Y 19 -0
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
CITY OF CARLSBAD
BY E. Anderson BY
Title Title Vice-President/Statewide Head City Improvement and Restora- tion Program
20