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
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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.
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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
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ALETHA L .. RAUTENKRANZ, /&2Jy, City C1 erk . .,..
(SEAL)
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(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
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'. 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 :
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"(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;
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(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
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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:\
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".- 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:
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