HomeMy WebLinkAbout5273_CCv0001.pdf RESOLUTION NO. 5273
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS AUTHORIZING AND DIRECTING THE
EXECUTION OF AN ASSUMPTION AGREEMENT
RELATING TO $22,650,000 AGGREGATE PRINCIPAL
AMOUNT OF CITY OF REDLANDS VARIABLE RATE
DEMAND MULTIFAMILY HOUSING REVENUE
REFUNDING BONDS (PARKVIEW TERRACE PROJECT),
1991 SERIES A AND CERTAIN OTHER ACTIONS
PERTAINING THERETO
WHEREAS, the City Council of the City of Redlands (the "City") has issued its
$22,650,000 aggregate principal amount of City of Redlands Variable Rate Demand Multifamily
Housing Revenue Refunding Bonds (Parkview Terrace Project), 1991 Series A (the "Bonds"),
the proceeds of which were used to provide a loan to the owner of a certain multifamily housing
project (the "Project"); and
WHEREAS, the Bonds were secured by a direct draw letter of credit (the "Letter
of Credit") originally issued by Security Pacific National Bank; and
WHEREAS, the owner (the "Owner") of the Project has extended the terms of
the Letter of Credit with Bank of America NT&SA, as successor in interest to Security Pacific
National Bank (the "Bank"); and
WHEREAS, previously the Owner has acquired additional financing for the
Project from Fullerton Savings and Loan Association ("Fullerton"), which financing is secured
on a basis subordinate to the Bonds; and
WHEREAS, the Owner has defaulted under the note securing Fullerton's lien and
Owner has agreed to give Fullerton a deed in lieu of judicial foreclosure; and
WHEREAS, such transfer of the Project must be consented to by the City, the
Bank and Bankers Trust Company of California, National Association, as succeeded in interest
by First Trust of California, National Association (the "Trustee"), pursuant to a Regulatory
Agreement dated as of February 1, 1991 (the "Regulatory Agreement"); and
WHEREAS, as a condition to the consent of the City, the Bank and the Trustee,
the new owner must assume in writing the obligations of the Owner under the Regulatory
Agreement, provide an opinion of counsel that such obligations have been duly assumed by the
new owner, and provide an opinion that such transfer shall not adversely affect exemption from
federal and California income taxation of interest on the Bonds; and
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WHEREAS, Fullerton and the Owner have submitted an Assumption Agreement
to the City for consent;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND
ORDERED BY THE CITY COUNCIL OF THE CITY OF REDLANDS that:
Section 1. Recitals. The recitals stated above, and each of them, are true
and correct.
Section 2. Consent to Assumption Agreement. The Assumption Agreement
presented to the City Council at this meeting and entered into between the City, Fullerton and
the Owner, is hereby consented to and approved and the Mayor or the City Manager or their
designee is authorized and directed for and in the name and on behalf of the City to execute a
consent to the terms and conditions of the Assumption Agreement with such changes therein as
the officer executing the same may approve, such approval to be conclusively evidenced by the
execution thereof and upon receipt of the opinions required pursuant to Section 10 of the
Regulatory Agreement.
Section 3. Other Acts. The City Manager and the Finance Director of the City
are hereby authorized to take any and all actions necessary in order to execute the provisions of
this Resolution and this City Council hereby ratifies and affirms any prior action taken by such
officers in connection with this transaction.
Section 4. Effective Date. This Resolution shall take effect upon adoption.
ADOPTED this 20th day of February, 1996.
Mayor of the City of Redlands
ATTEST:
City Clerk f the 610
City of fWlands
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I, Lorrie Poyzer , City Clerk of the City of Redlands, California, do
hereby certify that the foregoing Resolution was regularly introduced and adopted by the City
Council of the City of Redlands, California, at a regular meeting thereof held on the 20th day
of February, 1996, by the following vote of the City Council:
AYES: Councilmembers Gilbreath, Cunningham, Gil, Banda;
Mayor Larson
NOES: None
ABSENT: None
ABSTAINED: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of the City of Redlands, California this 20th day of February , 1996.
City Clerk of the Cit edlands,
Califo
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