HomeMy WebLinkAboutContracts & Agreements_29-1989_CCv0001.pdf FIRST AMENDMENT TO INSTALLMENT SALE AGREEMENT
(SECURITY AGREEMENT) RELATING TO RECREATIONAL
FACILITIES ("SECOND INSTALLMENT SALE AGREEMENT")
THIS FIRST AMENDMENT TO INSTALLMENT SALE AGREEMENT
(SECURITY AGREEMENT) RELATING TO RECREATIONAL FACILITIES ("SECOND
INSTALLMENT SALE AGREEMENT") , hereafter referred to as "this
Amendment", is made and entered into effective as of September 30,
1988, by and between the City of Redlands (herein called the
"Seller") , a general law city and public body, corporate and
politic, organized and existing under the laws of the State of
California, and the Young Men's Christian Association of Redlands,
a California Non-Profit Corporation (herein called the "Purchaser")
with reference to the following facts:
A. Seller and Purchaser are parties to a certain
Installment Sale Agreement (Security Agreement) Relating to
Recreational Facilities, entered into as of September 30, 1983 (the
"Original Agreement") , which is incorporated by this reference.
Except as otherwise noted, all initially capitalized terms used in
this Amendment shall have the same meanings as given in the
Original Agreement.
B. Pursuant to the Original Agreement, the Purchaser
acquired the Facilities Site, and constructed the Facilities. As
the result of unforeseen, but reasonable, events, the cost of
construction of the Facilities exceeded the original estimate of
the Purchaser. In addition, Purchaser has made additional capital
improvements to the Facility. The foregoing have resulted in a
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need to increase the Purchase Price.
C. As a part of the Original Agreement, there is set
forth an Exhibit "Bit , setting forth the Principal Property Price,
in the amount of $750, 000 (the "Original Purchase Price") . The
Original Purchase Price was based upon the best estimate of
Purchaser of the cost acquisition and construction of the
facilities and capital improvements. If the Purchaser had known
of the need to expend the additional amounts which have been
incurred, the Original Purchase Price would have been the sum of
$800, 000.00.
D. Purchaser desires to amend the original Agreement to
revise Exhibit "Bit thereto to amend the Original Price, thereby
increasing the Principal Property Price to the sum of $800,000. 00.
Further, Purchaser has requested that Seller agree to an extension
of time for payment of the unpaid principal balance of the purchase
payments, through amendment of Exhibit "Bit to provide for a new due
date of October 30, 2002, and that Seller also agree to an
adjustment in the interest rate.
E. Seller has determined that good cause exists for the
amendment of the Original Agreement as requested by Purchaser, and
is therefore willing to enter into this Amendment.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Incorporation of Recitals. The above recitals of
fact are incorporated by this reference and made a part of this
Amendment.
2. Amendment of Original Agreement. The Original
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Agreement is hereby amended in the following respects only:
(a) Exhibit IIBII is amended to reflect that the
Principal Property Price is $800, 000- 00;
(b) Exhibit IIBII is further amended to provide under
the provision for "Purchase Payments", and in particular under
Paragraph (B) thereof, that the unpaid principal balance, plus any
accrued interest, shall be due "October 30, 200211 , and the phrase
"October 30, 198811 is hereby deleted.
(c) Exhibit IIBII is further amended to insert the
following"
The interest rate on this obligation shall
be, from the effective date of this Amendment,
eight and one-half percent (8 1/2%) per annum,
and shall continue at that rate until October
30, 1993 . Forty-five (45) days before October
30, 1993 , the interest rate shall be adjusted
(effective as of October 31, 1993) to a rate
equal to the interest rate charged to member
institutions by the Eleventh District Federal
Home Loan Bank, plus one percent (1%) ("the
Adjusted Rate") . The Adjusted Rate shall
continue until October 30, 1998. Forty-five
(45) days before that date, the Adjusted Rate
shall be readjusted to the interest rate then
charged to member institutions by the Eleventh
District of the Federal Home Loan Bank, plus
one percent (1%) (the ("Readjusted Rate") .
The Readjusted Rate shall become effective as
of October 31, 1998, and shall thereafter
remain the interest rate on the obligation
until it is fully repaid. commencing with the
next payment due after the effective date of
this Amendment, and until the effective date
of the Adjusted Rate, the monthly payment of
the Purchaser shall be the sum of $7,999.27
(the "Minimum Payment") . For the remaining
term of this obligation, the monthly payment
to be made by the Purchaser shall be the
greater of the Minimum Payment or such amount
as must be paid on a monthly basis to fully
repay the Purchase Price by October 30, 2002,
taking into account the change, if any, in the
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interest rate based upon the Adjusted Rate or
the Readjusted Rate, as those interest rates
become effective. It is the intention of the
parties that such sufficient sum be paid by
the Purchaser as to fully amortize and retire
this obligation by October 30, 2002. These
changes in the interest rate and payment terms
supersede all other prior agreements between
the parties regarding those provisions.
3. Original Agreement Otherwise Effective. Except as
expressly amended hereby, the Original Agreement shall be, and is,
in full force and effect.
"SELLER"
CITY 70J7 REDLANDS, CALIFORNIA
Dated: June 1-9, 1989 By: Col�Ze
CAROLE BESWICK, Mayor
(City Seal)
ATTEST:
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CITY CgERK---
"PURCHASER"
YOUNG MEWS CHRISTIAN
ASSOCIATION OF REDLANDS,
A CaliZnia None-Profit
Corporal ion
Dated:— Ame 23, 1989 By:
Pre si e t
By:
Secretary
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Redlands F:Weral Savings
AND LOAN ASSOCIATION
ADMINISTRATIVE OFFICES
300 E. STATE STREET P.O. BOX 3260
REDLANDS, CALIFORNIA 92373
TELEPHONE (714) 793-2391
June 28, 1989
Mr. John Holmes
City Manager
City of Redlands
30 Cajon Street
Redlands, CA 92373
Re: YMCA Loan No. 140-02004-2
Dear John:
I am pleased to advise you that the documentation for the
above transaction has finally been completed, and I enclose for
your records a fully executed counterpart of the First Amendment
to Installment Sale Agreement. This should just be placed with the
City' s records concerning this transaction.
Please call if you have any questions.
Very truly yours,
D. BRIAN REIDER
Senior Vice President and
General Counsel