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HomeMy WebLinkAbout1982-11-16; City Council; 6956-1; Property Rehabilitation Programr w JF CIaOF CARLSBAD - AGENDA BILL AB#--/ DEPT. H1 TITLE MTG, 11/16/82 CIN MG OF AYERICA AMENDMENT TO AGREEPIEKT WITH BANK CITY AT1 PROPERTY REHABILITATION PROGAbI: DEPT. RE D I RECOMMENDED ACTION: City Counci 1 approve an amendment to the Property Rehabi 1 i tation Loan Agreement with the Bank of America. I ITEM EXPLANATION The Bank of America manages City funds for property rehabilitation. On Apri 1 6, 1982, Counci 1 approved agenda bi 11 n"6956 and resolution #6840 directing staff to enter into an agrement and deposit funds with the i3ank to provide for residential and conlinercia1 rehabilitation loans. The original agreement provided for commercial loans i-nade at 6% to be supported by a non-i nterest bearing account. Both the City and theBank of America later agreed to amend this agreement to allow commercial loans to be made at 12%. Additionally, the City deposit on these loan funds will earn interest at the rate of 5.25%. - Council 's consent is needed in order to execute the amendment to the agreement. FISCAL INPACT This will result in rehabilitation loan funds earning an additional 5.25% interest for the City. EXHIBITS 1. Resolution 140. 70 6 6 approving amendment to asreement with Bank of America. a Id 5 tE 2z z .. P 5 4 =! 0 z s 0 0 ? CA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2 7- 28 I e ?. RESOLUTION NO. 7066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE BANK OF AMERICA FOR PROPERTY REHABILITATION LOAN PROGRAM WHEREAS, the City Council of the City of Carjsbad, California does hereby resolve as follows: (1) That an amendment to the agreement between the City of Carlsbad a the Bank of America, a copy of which is attached hereto as 'Exhi bit A and made a part hereof, is hereby approved. (2) That the Mayor of the City of Carl sbad is hereby authorized and directed to execute said amendment to the agreement for and on behalf of th City of Carlsbad. PASSED, APPROVED AND ADOPTED at.a regular meeting of the City Council of the City of Carlsbad, California, held on the 16th day of November 1982, by the foll owing vote, to wit: AYES: Council Pmkers Casler, Lewis, Kulchin, Chick and Prescott NOES: None ABSENT: None .Ljkv. s/. &:,A .% ATTEST: MARY , HJCASLER , Mayor .. ALETHA L .. RAUTENKRANZ, /&2Jy, City C1 erk . .,.. (SEAL) //// I/// (I) 9 Exhibit A AMENDMENT TO COXMERC1A.L AND RESInEWI'Ifi PROPERTY REIl&3ILIThTION LOAN AGREEMENT CO?PREHENSIV~ FOB! THIS MLENDXNT is made by the CITY OF CARLSBAD, a municipal corporation in the State of California. (herein called "Authority") and BANK OF WRICA NATION,& TRUST An> SAVINGS ASSOCIATION, a national bank: association (herein called "Bankt'). RECITALS *- '. A. Ruthoricy and Bank, on 'May 17, 1982, entered into a Commercial and Residential Property Rehabilitation Loan Agreement, pursl to which Eank is making below-market interest rate property rehabilitat: loans (therein and herein called "Loans") I to certain owners of residen rqal property within Authority and approved by Authority as recipients Loans . B. Pursuant to paragraph 9(b) subparagraph 2(i) of the .~. ,- Property Rehabilitation Loan Agreement, Authority has requested Bank to change its borrower interest rate for comercial property improvement loans. C. Pursuant to paragraph I1 of the Property Rehabilitation Loan Agreement, 2a-k agrees to pay interest on the deposits pledged as collateral for commercial improvement loans. D. Bank wishes to amend the, Loan Agreement to provide the terms herein agreed to. NOK, THEREFORE, for and in consideration of the foregoing and the mutual Agreements made herein, and for other good and valuable considerations, Authority and Bank agree as follows: 1. Paragraph 9 (b) subparagraph 2(i) of the Property Rehabilitation' Loan Agreement is amended to provide in its entirety, as fol1,ows : .. .. 28 21 a;2 23 23: 25 26 27 28 . ' I e 9 "(2) For Commercial Property Improvement Loans, a' 12% Collateralized Loan (0% credit risk)." . 2. Paragraph I1 of the Property Rehabilitation Loan Agreemt is amended to provide in its entirety, as follows: "A) Each Collateralized Loan for residential property improvement shall be supported by 'a noninterest-bearing deposit made b; Authority to a Collateralized Loan Account, an account that shall at al times be at least equal to: a (a) 100% of unpaid principal for each 3% Loan for which Bank has not designated the Applicant (pursuant to paragraph 9(b) as a party TO whom Bank is willing to make a (partially) Collatexalizec Loan ; (b) 70% of unpaid principal for each 7.25% Loan; (c) 50% of unpaid principal. for each 10.25% Loan; ..,I ,-., . . (d) 30% of unpaid principal for each 13.50% Loan; pius, in each case, 100% of accrued unpaid interest." ' "B) Each Collateralized Loan for commercial property improvement shall be supported by an interest-bearing deposit made by Authority to a Collateralized Loan Account, an account that shall at a1 times be at least equal to 100% of unpaid principal €or each 12% Loa. Interest will be paid at the passbook rate of 5.25%." "Authority hereby assigns the Collateralized Loan Accounts to secure the Collateralized Loans." IN WITNESS WHEREOF, this Amendment is executed by Authsrity /// /I/ "/I/ f // - 2- IS I Cr ..a I 2 3 4 5 6 TI 8 8 9 18 4 $1 .. 3.2 13 14 15 16 17 18 LLJ 40 20 21 r-w 99 23 24 25 26 27 28 ~ I 1 a 9 i I acting by and through its City Council pursuant to Resolution No. 706f ~ authorizing such execution, and by Bank. Dated this If- 7% day of /Vn geln8~fl , 19E BAXK OF AMERICA NATIONAL TRUST CITY OF CARLSBAE .. AND SAVINGS ASSOCIATION By : "f&, ~, /. @L:\ I/ ".- By : " .---&yJ/ 1' \ Don Walsh ' Title: .. . Playor Q Title: Vice President-Statewide I City Improvement and Restoration . , Attached is a true and correct cc . APPROVED AS TO FORM: n of the original Resolution: /&?& . ;pfl i' * C5ty c1-4 ~ h**'7 ".. . L. 1 . 'J -3-