HomeMy WebLinkAbout1982-11-16; City Council; Resolution 7066., *
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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 Carlsbad, California doe
hereby resolve as follows:
(1) That an amendment to the agreement between the City of Carlsbad and
the Bank of America, a copy of which is attached hereto as Exhibit A and
made a part hereof, is hereby approved.
(2) That the Mayor of the City of Carlsbad is hereby authorized and
directed to execute said amendment to the agreement for and on behalf of the
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 following vote, to wit:
AYES:
NOES: None
Council Ndxxs Casler, Lewis, Kulchin, Chick and Prescott
ABSENT: None
ATTEST:
(SEAL)
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MARY HJCASLER, Mayor
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Exhibit A
AMFI3UPiENT TO COMMERCIAL AND RESIDENTIAL
PROPERTY REHABILITATION LOAN AGREEMENT
COMPREHENSIVE FORM
THIS AMEND?ENT is made by the CITY OF CAXSBAD, a municipal
corporation in the State of California (herein called "Authority") and
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a national banking
association (herein called "Bank").
RECITALS
A. Authority and Bank, on May 17, 1982, entered into a
Commercial and Residential Property Rehabilitation Loan Agreement, pursuant
to which Bank is making below-market interest rate property rehabilitation
loans (therein and herein called "Loans"), to certain owners of residential
real property within Authority and approved by Authority as recipients of
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 commercial property improvement
loans.
C. Pursuant to paragraph 11 of the Property Rehabilitation
Loan Agreement, Sank 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.
NOW, THEREFORE, for and in consfderation 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
follows :
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"(2) For Commercial Property Improvement Loans, a'12%
Collateralized Loan (0% credit risk)." .
2. Paragraph 11 of the Property Rehabilitation Loan Agreement
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 by
Authority to a Collateralized Loan Account, an account that shall at all
times be at least equal to: 0
(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) Collateralized
Loan;
(b)
(c)
(d)
70% of unpaid principal for each 7.25% Loan;
50% of unpaid principal for each 10.25% Loan; or
30% of unpaid principal for each 13.50% Loan;
plus, 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 Losn Account, an account that shall at all
times be at least equal to 100% of unpaid principal for each 12% Loan.
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 W-EREOF, this Amendment is executed by Authority
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acting by and through its City Council pursuant to Resolution No
authorizing such execution, and by Bank.
7066 ,
day of BEG , 1982. Dated this //y 7%
CITY OF CARLSBAD
. Playor Title: .. *
APPROVED AS TO FORM: A
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BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION
Title: Vice President-Statewide Head
City Improvement and
Restoration
Attached is a true and correct copy
of the original Resolution: