HomeMy WebLinkAboutReso 1978-9228
RESOLUTION N0. ~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING AGREEMENTS BETWEEN
THE CITY OF CHULA VISTA AND CROCKER NATIONAL
BANK FOR SERVICES RELATIVE TO THE CITY'S
COMMUNITY HOUSING IMPROVEMENT PROGRAM AND
AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS
solve
The City Council ~,f the City of Chula Vista does hereby
follows:
NOW, THEREFORE, BE IT RESOLVED that those certain agreements
( redit A reement and Agency Agreement) between the City of Chula Vista and
C ocker N tional Bank, a California Corporation, for services relative to the
C ty's Co munity Housing Improvement Program dated the ~5T H day of
~ 19z~ copies of which are attached hereto and
i corpora ed erein, t e same as though fully set forth herein be, and the
s me are ereby approved.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula
V sta be, and he is hereby authorized and directed to execute said agreements
f r and o behalf of the City of Chula Vista.
P~esented~by Approved as to form by
u'f G. D srochers, Community G rge D. ndberg, City ttorney ,~
velopme t Director ~='
ADOPTEI
5 ,CALIF
y the f
AND APPROVED E3Y THE CITY COUNCIL OF THE CITY OF
)RNIA, this- 15TH day of- AUGUST
Ilowing vote, to-wit:
oilmen ; G T I_ l_nbJ . ~rnT-r . rox F ,T)AHI
oilmen ; NONE
;ilmen : NONE
Cou~hcilmen
SAN DIE
_A VIST
ss.
0
RO TEMPORE
I, JENNI M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HERE Y CERTIF that the above and foregoing is a full, true and correct copy of
9 ~ 2 ~ ,and that the same has not been amended or repealed.
^DATED
(deal )
City Clerk
22$
CC-660
.~
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AGENCY AGREEMENT
Deferred Loan Program
THIS AGENCY AGREEMENT (the "Agreement") is made
and ated this 15th day of August 1978, by and
betty en the CITY OF CHULA VISTA CALIFORNIA
(the "City") and CROCKER NATIONAL BANK, a national banking
association (the "Bank").
R E C I T A L S
A. The City desires to make certain loans (the
"Loa
appl
appl
term
and
ilit
ns" ar a "Loan") to qualified applicants to enable such
icants to upgrade substandard housing units to meet
icable building codes.' Said Loans are to be made on
sand subject to conditions established by the City
with funds of the City allocated to its ~h2~using rehab-
ation and redevelopment programs (the "Deferred Payment
Pro ram Funds") and each Loan is to be secured by a deed of
trust cavering the real property which is the subject of the
wor}~ (a "Deed of Trust").
B. The City has requested Bank to provide it
wi
Lo
certain services relating to the documentation for the
s, which services are described more particularly below.
1.
r~ ~ U
• y
C. Bank has agreed to provide such services on
the
A G R E E M E N T
NOW, THEREFORE, in consideration of the above
Reci
rms and subject to the conditions contained herein.
s and the covenants and agreements contained herein,
the arties hereto hereby agree as follows:
1. Upon receipt of written request by the City
tha Bank act as its agent in preparing documentation for a
Loa which request shall be in the form of that attached
her to as Exhibit A and by this reference made a part hereof
(a 'Request"), Bank shall prepare and make available for
exe ution by the proposed borrower a promissory note in the
.for of that attached hereto as Exhibit B, as well as such
oth r documentation for the Loan as it would utilize in
ting loans of similar nature for its own account,
which documentation shall incorporate the terms and conditions
set forth on the accompanying Request submitted by the City.
Upo execution of the documentation by a borrower, Bank
shall record the Deed of Trust and, thereafter, shall deliver
to he City the originals of all documentation.
2. Bank's obligation to perform the services
specified in paragraph 1 hereof with regard to any Loan is
2.
I~)<X
C
tation far such loan by a borrawer, Deferred Payment
Proq~am Funds in a demand account with Bank in the City's
name (the "General Account") in an amount equal to the
prin ipal amount of such Loan. Simultaneously with the
exec tion of said documentation, Bank shall debit the General
Acco~nt in the principal amount of the Loan and shall credit
such
City
from
shal
tinned upon there being at the date of execution of-the
amount to a second demand account with Bank in the
's name (the "Deferred Payment Disbursement Account"),
which Deferred Payment Disbursement Account the City
L disburse the Loan funds from time to time as agreed
between the borrower and the City.
3. Bank's sole obligation hereunder shall be to
perf rm the services specified in paragraph 1 hereof with
reas nable diligence, and it shall have no responsibility
for he administration or collection of the Loans, the legal
suf iciency for any purpose or enforceability of any provi-
sio s of the documentation prepared by it hereunder, or
compliance with any laws or regulations relating to such
doc entation or the Loans, and Bank snakes no warranties or
representations with respect to such sufficiency, enforce-
ability or compliance.
and
4. Bank shall be held harmless by the City from
against any and all liability Bank may incur arising out
3.
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of, elating to or connected with any action taken or
omit ed to be taken by Bank hereunder, except that resulting
from Bank's own negligence.
5. In connection with each Loan for which Bank
prov'des the documentation pursuant hereto, the City shall
pay o Bank, promptly upon execution of the documentation by
the rospective borrower, the sum of $40.00. In addition,
the ity shall promply pay to Bank, upon demand, all costs
and xpenses, including, without limitation, recording,
not rial, title report and attorneys' fees, if any, incurred
by ank in connection with the Loans. All such amounts
sha 1 be paid by Bank debiting the General Account promptly
upo execution of the documentation for any Loan or demand
for such costs and expenses in such amounts; provided,
how ver, that if funds in the General Account are insuffi-
cie t to cover such amounts, the City shall, promptly upon
not'fication of the deficiency, pay the deficiency to Bank
in ull.
6. Bank's obligation ~to perform any services
her under is conditioned upon it having received, on or
bef re the date the first Request is submitted to it by the
Cit an opinion of the City Attorney that:
(a) The City has all requisite power and
authority to enter into and perform this Agency Agreement;
4.
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day
(b) The City has taken all action as may be
required fo.r the execution, delivery and performance
hereof; and
(c) This Agency Agreement will become, upon
execution hereof by the City, valid, binding and
enforceable against the City in accordance with its
terms.
Executed at Chula vista California, the
year first above written.
CROCKER NATIONAL BANK
~..
By
THE CITY OF CHULA VISTA
By
.GREGORY X, MAYOR RO TEMPO RE
5.
4.7 I
EXHIBIT A
RE~UE5T
T0:
Crocker National Bank ("Bank")
(the "City")
Pursuant to the terms of the Agency Agreement
dated 19,~, by and between City and Bank, the
Cit hereby notifies Bank that it desires to make an improve-
men loan (the "Loan") to the borrower(s) named below and
req ests Bank to provide those services relating to the Loan
that it agreed to provide in the Agency Agreement, including
doCU
the
Ci
City of
ting the Loan.
The documentation for the Loan shall incorporate.
terms and conditions set forth herein.
1. The funds advanced to the borrower(s) by the
pursuant to the Loan shall bear no interest; provided,
r, that any amount not paid when due shall bear inter-
est at the rate of seven percent (7%) per annum.
2. The City shall be named as beneficiary under
a d ed of trust on the real property and improvements which
are the subject of the work for which the Loan proceeds are
to e used (the "Subject Property").
A-1
A~7
3. The City hereby agrees that it does not
require, as a condition of making the Loan, receipt of an
appr isal and/or the assessed evaluation of the Subject
Prop rty, although it understands that Bank, in documenting
loan for its awn account, generally requires such information.
4. The name and address of the borrower(s) are
5. The location of the Subject Property is
6. The net loan amount is to be $
7. The loan is to be evidenced by a promissory
not which is to be payable upon the sale, conveyance,
ass'gnment, hypothecation or other transfer to any party(ies)
of ny interest of the borrower in the Subject Property.
8. The City does/does not require that property
ins ranee be furnished covering the Subject Property.
9. The City represents that the information
con ained herein accurately and completely sets forth 'the
ter s and conditions of the Loan which the City desires to
mak to the above-name borrower(s), and the City hereby
A-2
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exp
in
:ssly agrees that Bank may rely on such representation
aring the documentation for the Loan.
CITY OF
By
A-3
i~ 7 ~
1
EXHIBIT B
PROMISSORY NOTE
California
19
FOR VALUE RECEIVED, the undersigned hereby promises
to pay to THE CITY OF or order ("Holder"),
upo the sale, conveyance, assignment, hypothecation or
oth r transfer to any party(ies) of any interest of the under-
sig ed in the property described in the deed of trust executed
thi date by tYYe undersigned and referred to below, the
pri cipal sum of DOLLAR5
($ ), without interest thereon; provided,
how ver, that the undersigned shall pay interest, upon
dem nd, on any amount not paid when due at the rate of SEVEN
PER ENT {7%) per annum. A11 payments hereunder shall be
mad in lawful money of the United States of America at the
off ce of Holder at
California (or such other place as Holder may
fra time to time designate in writing).
The undersigned may prepay this Note, in whole or
in art, at any time without premium or penalty.
Presentiment, demand, protest and notice are hereby
exp essly waived by the undersigned. Should payment hereof
not be made when due, the undersigned further promises to
B-1
X77
.~
pay
1 costs of collection, including, withau~t limitation,
atto~neys' fees, incurred by Holder in connection herewith.
This Note is secured by a deed of trust, dated
rrently herewithi, by and between the undersigned, as
r, and Holder, as beneficiary, reference to which is
y made for additional terms and conditions affecting
this Note.
This Note shall be governed by and construed in
acc rdance with the laws of the State of California. If the
rsigned is more than one, each covenant and obligation
contained herein shall be joint and several.
Borrower
Borrower
B-2
ti~ 7
CREDIT AGREEMENT
THIS CREDIT AGREEMENT (the "Agreement") is made
and da
THE CI
this 15th day of August , 1978, by and between
OF CHULA VISTA, a municipal corporation (the "City"),
and CR~CICER NATIONAL BANK, a national banking association
("Bank
~) -
RECITALS
A. On August 22, 1974 Congress passed Public Law
93-383, commonly known as the ".Housing and Community Develop-
ment A~t of 1974" (as amended from time to time, the "Act").
Shorty thereafter, in September 1974, the Subcommittee on
Housin~ and the Committee on Banking and Currency of the
House f Representatives, 93rd Congress, 2nd Session, pub-
lished a directory of eligible recipients for funds released
under he Act. The City is listed as such an eligible
recipient.
B. Pursuant to the Act, the City applied for
funds to implement, among other things, a program providing
low interest loans to City-approved applicants for the
purposes of housing rehabilitation and property improvement,
inclu ing upgrading substandard housing units to meet the
appli able housing codes.
C. The Department of Housing and Urban Develop-
ment approved the City's application on June 27, 1977.
Funds released to the City under the Act have been allocated
by th City for a housing rehabilitation program through Bank
(the 'Program"). Any and all funds received by the City under
the A t and allocated by the City for implementation of the
Progr m will be referred to herein as the "Loan Program Funds".
~~ 7
D. The City anal Bank have now reached final
greeme t with regard to Bank's participation in the Program.
he Ban1 has agreed to make loans to City-approved applicants
hom th Bank determines to be creditworthy. In consider-
tion o Bank's participation in the Program, the City has
greed o keep the Loan Program Funds on deposit with Bank
nd to ubsidize and guarantee certain low interest loans
ursuan to the Program, all as provided more specifically
n this Agreement.
ecital
erein,
NOW, THEREFORE, in consideration of the above
and the mutual covenants and conditions contained
the parties hereto hereby agree as follows:
. nr~r.r ur~•~rm
n this
1. Defi.niti.ons. The following terms are defined
Agreement as indicated below:
Act. Recital A.
Additional Information. Paragraph 6.(c).
Aggregate Discount. Paragraph 9.
Assigned Interest Rate. Paragraphs 6.(c)(v) & 7.
Class A Loan. Paragraph 6.(c)(v)a.
Class B Loan. Paragraph 6.(c)(v)b.
Deed of Trust. Paragraph 8.(b).
Disbursement Account. Paragraph 5.(c).
General Account. Paragraph 5.(a).
General Ledger Account. Paragraph 10.(a).
Guaranteed Loan. Paragraph 7.
Guaranteed Loan Account. Paragraph 5.(b).
Loan Program Funds. Recital C.
2.
X77
Loss Reserve Amount. Paragraph l0.(a).
(a) A demand account which shall. be desig-
n ted as the "General Account";
3.
Note. Paragraph 8.(a).
Program. Recital C.
2.• Loan. Program Funds. The City hereby allocates
oan Pr gram Funds in the amount. of $1JO,000 to the Program
ith Ba k.
3. Loan Commitment. Subject to the terms and
onditi ns contained herein, Bank hereby commits the aggre-
ate am unt of $600,000 to be loaned, pursuant to the Pro-
ram, t applicants recommended to Bank by the City and
eemed :reditwarthy by Rank.
e made
raised
he wor
hi_ch a
ole di
4. Loan Maximum. Loans under the Program will
in amounts up to ninety percent (90%) of the ap-
value of the real property which is the subject of
k for which the proceeds of the loan are to be used,
ppraised value shall be determined by Bank, in its
scretion.
5. Deposit of Funds. As a condition precedent
Co R~~nk'~~ obligations 1~crcunder, thc~ City shall. deposit with
Bank a y and all Loan Program Funds allocated to the Program
by the City from time t-o time. The City hereby grants to
Bank a security interest in the Loan Program Funds and in
all ac ounts in which such Funds may be held from time to'
time f r the purpose of securing each and all of the City's
obliga ions under this Agreement. Said Loan Program Funds
shall e deposited in such proportion as the City shall
determ'ne {subject to the provisions contained in this
Agreern nt) in the following accounts, the terms and condi-
tons f which shall. be esr.ablished by Bunk ~~nd thc: City:
_9
(b) A demand account which shall be desig-
ited as the "Guaranteed Loan Account";
(c) A demand account which skull be desi.g-
nl~ted as the "Disbursement Account"; and
(d) Such other accounts as the City and Bank
m y agree upon, including, without limitation, accounts
w ich bear interest at the prevailing interest rates
a d on the prevailing terms and conditions.
Subject to the account balance requirements set forth in
Paragraph 11. (b)~below, the City may make withdrawals of
Loan Program Funds from time to time.
6. Responsibility of the City. In connection
with each proposed loan and loan applicant under the Program,
the 'City shall perform the following functions:
(a) The City shall assist each loan applicant
completing the loan application form supplied by Bank.
(b) Prior to submission of any applicant's
oan application form, the City shall determine the
pplicant's eligibility for the Program and the amount
f the loan required and shall secure estimates on the
~ork to be performed.
(c) The City shall furnish to Bank with
aspect to each loan application the following items
zd information (the "Additional Information"):
(i) A breakdown of the costs involved
in the work to be performed on the applicant's
real property;
(ii) A description of the work to be
performed;
(iii) A preliminary estirlate of_ -the value
of the real property offered as security for the loan;
4.
~9'~G
(iv) A copy of the proposed contract
between a licensed contractor and the applicant
for the work, or, in the absence of a proposed
contract, a copy of the lowest acceptable bid from
a contractor proposed to be reduced to contract
form; and
(v) Written indication of the rate of
interest which the City has determined shall be
charged to the proposed borrower by F3ank for such
loan (the "Assigned Interest Rate"), which Assigned
Interest Rate will be a rate equal to an annual
percentage rate of, at the City's option,
a. %.00 (a "Class A Loan"); or
b. 3.00 (a "Class B Loan").
(d) The City shall retain control over, and
ive Bank written authorization for, the disbursement
f loan proceeds, which disbursements shall be made by
ank only upon such written authorization to the Dis-
ursement Account or designated fund control as the case
gay be .
(e) The City shall, through appropriate
apartments, determine and fully inform Bank of con-
truction progress, compliance with building codes and
ompletion estimates, shall provide to Banlc all other
nformation reasonably requested by Bank, and shall
ssume all responsibility for assuring that the work is
n accordance with the Program.
7. Credit Evaluation. Bank shall perform its
stand rd credit evaluation with respect to each applicant,
make 'ts judgment with respect to the creditworthiness of
such pplicant, and inform the City of its decision relating
5.
., ~, G
hereto, If Bank approves an application for a loan under
he Program, it shall indicate its credit decision to the
ity an shall undertake to process the loan in accordance
ith th provisions of this Agreement. In the event Bank
oes no approve an application for a loan under the Program,
t steal so inform the City and that decision shall be
final; rovided, however, that in the event any application
o decl'ned is resubmitted~by the City with the written
irecti n of the City to make the loan requested in the
pplica ion (a "Guaranteed Loan"), Bank shall make such
~uarant ed Loan. A Guaranteed Loan shall bear interest at
~n annu 1 percentage rate of 7.00 or 3.00, as determined by
:he Cit and indicated to Bank in writing (which rate shall
>e the 'Assigned Interest Rate" for such Guaranteed Loan)
find sha 1 be subject to, in addition to all terms and condi-
tions o this Agreement, the special terms and conditions
:-elatin to a Guaranteed Loan set forth herein. It is
express y understood that Bank's present credit decision
policy 'n evaluating loan applications does not require that
the rea property which is the subject of the work for which
the pro eeds of the loan will be used be subject only to a
specifi number of liens.
8. Loan Documentation and Pravisi.ons. Each
borrow r under the Program shall execute and deliver to Bank
the fo lowing:
(a) A promissory note in the form of Bank's
s andard form of promissory note for home improvement
1 ans (the "Note"). Interest payable under the terms
o the Note shall be at the Assigned Interest Rate and
t e Note shall provide for repayment in equal monthly
i stallments of principal and interest of not less than
$ 0.00 each (or in extraordinary cases at the written
r quest of City and in Bank's discretion, $20.00 each)
o er a term of no longer than one hundred eighty (l80)
m nths, as the borrower and Bank shall agree;
6.
'))Ci
(b) A deed of trust from the borrower,
as rustor, in favor of Bank, as beneficiary, in
for and substance satisfactory to Bank, covering
the real property which is the subject of the work
for which the proceeds of the loan are to be used
(th "Deed of Trust");.and
(c) Such other documentation as Bank may, in
it discretion, require.
g, Interest Subsidy. At the time of execution
~f each Note evidencing a loan which is not discountedeon
Loan, t e City shall pay to Bank an amount,
the bas's of future cash flow to determine present value,
equal t the difference between:
(a) the aggregate amount of interest which
a able on the Note during the term thereof at
wuldbepy
a annual percentage rate of 10.00, and
re ate amount of interest payable
(b) the agg g
o the Note during the term thereof at the Assigned
I terest Rate.
Such mount shall be referred to herein as the "Aggregate
Disco nt" and shall be paid by Bank debiting the General
Accou t in such amount.
10. Loss Reserve Provisions. At the date of
execu ion of a Note, the City shall pay to Bank:
(a) If the loan is a Class A or Class B
Loan, an amount (the "Loss Reserve Amount") equal to
re ate outstanding balance
ten percent (10°1°) of the agg g
of the Note at such date. The Loss ReseraieA~~ount in
shall be paid by Bank debiting the Gener
7.
^170
th Loss Reserve Amount, which amount shall be held in
th general ledger account of Bank (the "General
Le ger Account") and no interest shall be payable
th reon; or
~7 ~
(b) If the
am unt equal to one h~
ag regate outstanding
wh ch amount shall be
Ac ount and crediting
su h amount.
loan is a Guaranteed Loan, an
indred percent (100%) of the
balance of the Note at such date,
paid by Bank debiting the General
the Guaranteed Loan Account in
11. Conditions Precedent. Notwithstanding any
rovisi n of this Agreement, Bank's obligation to make any
oan un er the Program is conditioned upon:
(a) Banlt having received the Additional
Information with regard to such loan; and
(b) There being at the date of execution of
each Note and 'following the deposit, payment and trans-
fer of funds as required under Paragraph 1.0 above:
(i) funds in the General Ledger Account
in an amount not less than ten percent (10%) of
the aggregate outstanding balances of all Class A
and Class B Loans under the Program, including the
loan (of whatever Class, if any) to be evidenced
by such Note, minus any amounts charged against
that Account pursuant to the provisions of Para-
graph 14 below; and
(ii) funds in the Guaranteed Loan Account
in an amount not less than one hundred percent
(100%) of the aggregate outstanding balances of
all Guaranteed Loans under the Program, including
8.
the loan to be evidenced by such Nate if a Guaran-
teed Loan.
12. Loan Prepayments. Upon prepayment of any
oan un er the Program, in whole or in part, Bank shall
eport o the City and credit to the General Account an
mount, if any, equal to the unearned portion at the time of
uch pr payment of the Aggregate Discount attributable to
uch l.o n, calculated in accordance with the Rule of 78's.
13. Ac~l.~ustment of Accaunt Balances. As of
une 30, 1979, and semi-annually thereafter, Bank shall
-eview a) the aggregate Loss Reserve Amounts at that time
field in the General Ledger Account and (b) the balance of~
.he Gua anteed Loan Account, and shall report to the City
end cre it to the General Account any excess funds over and
above t ose required by the terms of Paragraph 11(b) above
~o be h ld in such Accounts.
14. De_f.a_ult. In the event any loan made by Bank
ander t e Program'remains i.n default far a continuous per.iotl
~f nine y (90) days on account of non-payment of any sum of
Honey d e pursuant to the terms of the Note or the Deed of
Trust, the City shall pay to Bank, at such time as Bank may,
in its sole discretion, demand, the following amounts:
(a) If the loan is not a Guaranteed Loan,
t e lesser of the then outstanding balance of the loan
o the aggregate funds then credited to the General
L dger Account, which amount shall be paid by Bank
c arging said amount against funds then held in the
G neral Ledger Account; or
(b) if the loan is a Guaranteed Laan, the
1 sser of the then outstanding balance of the loan or
t e aggregate funds then held in the Guaranteed Loan
9.
9 7.~
Ac ount, which amount shall be paid by Bank charging
sa'd amount against funds then held in the Guaranteed
Lo n Account.
t is e pressly agreed by the parties hereto that in no
vent s all the City's obligation at any time under this
aragra h 14 exceed (a) in the case of Guaranteed Loans, one
undred percent (100%) of the aggregate oustanding balances
f all uch Guaranteed Loans, and (b) in the case of loans
~ther t an Guaranteed Loans, ten percent (10%) of the aggre-
;ate ou standing balance of all such loans.
In cases in which all or a part of the loan is
barged against funds held in the Guaranteed Loan Account or
he Gen ral Ledger Account, at such time as the outstanding
alance of the loan is paid in full, whether by charging all
~r a pa t of such loan against funds held in such Accounts
~r upon Bank's exercise of any rights it may have at law or
n equi y pursuant to the Note and/or Deed of Trust relating
:hereto, Bank shall deliver to the City (a) the Note, duly
indorse by Bank to the City, without recourse or warranty,
ind (b) an assignment by Bank to the City of the Deed of
gust. Upon the delivery of the Note and assignment of Deed
~f Trust to the City, Bank shall have no obligation or
°esponsibility to the borrower or the City with regard to
such N te, Deed of Trust or the loan evidenced by such Note.
15. Extent of Obligations. The City's obligations
under aragraph 14 above are absolute and unconditional.
The Ci y, to the extent permitted by law, hereby waives
(a) an defense of estoppel, laches or any statute of limita-
tions o such obligations, and (b) any defense that may
arise y reason of the incapacity, lack of authority, or
termin tion of existence or death of any borrower. The City
also w fives deferral of such obligations arising by reason
of the institution of proceedings by or against a borrower
10.
X97
nder o pursuant to any federal or state bankruptcy or
nsolve cy law or other. law relating to the relief of
ebtors generally, and waives any defense to such obligations
.hat it may have as a result of Bank's election of or failure
o exer ise any right, powc:.r or remedy, including without
imitat'on,~the failure to proceed first against the borrower
~r any 'er.ur:i.ty i t }-ol.ds Ior t:he c~hlig~at_Ions cal l_he t}c.~r•rowet'
:o Bank, or the failure to exercise diligence in collecting
gums du under any Note or to realize on any Deed of Trust,
:v en when such election or failure impairs or alters the
sights of the City against the borrower. The City hereby
~uthori.zes Bank, without notice or demand or without affect-
ing th City's obligations hereunder, from time to time:
(a) to renew, extend, increase, accelerate, compromise,
nodify or change the time f:or payrnent or the terms of any
Note; b) to take and hold additional collateral for. the
paymen of any Note and to release such collateral.; (c) to
accept and hold any endorsement or guaranty of payment of
any No e; and (d) to release and substitute any such endorser
or gua antor, or any party who has given any security inter-
est in any additional collateral as security for the payment
of any Note, or. any other party in any way obl.igatc~d t:o pay
any No e. The City hereby waives all presentments, protests,
demand and notices (whether required by statute or other-
wise) r. nonperformance or of other default, dishonor.,
extens'on of credit and of every other kind and nature.
16. Term. The initial term of this Agreement
shall e from the date of execution hereof through Tune
3~, 19 9, and shall be renewed annually thereafter for
successive one year terms unless terminated as provided in
Parag aph 17 below. The terms and conditions of the agree-
ment, as renewed, shall be identical with the terms and
condi ions of this Agreement, except as modified by the
party s hereto i.n writing prior to such renewal date.
11.
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17. Termination. Notwithstanding any provision
ontain d herein, this Agreement may be terminated. by either
arty h reto at any time upon sixty (60) days' prior written
otice o the other party. Any termination of this Agreement
hall n t affect the rights of Bank or obligations of the
ity he eunder with respect to loans made pursuant to the
rogram prior to the effective date of such termination.
18. Opinion of City Attorney. As a condition
recede t to Bank's obligations hereunder, the City shall at
he dat of execution hereof, at each renewal date and upon
he ame dment of any provision hereof, furnish to Bank an
pinion of the City Attorney that:
(a) The City has_all requisite power and
au hority to enter into and to perform this Agreement;
(b) The City has taken all action as may be
re uired for the execution, delivery and performance
he eof; and
(c) This Agreement and any instrument or
do ument to which the City is a party, as contemplated
by this Agreement, are or will become upon execution
thereof by the City valid, binding and enforceable in
accordance with their respective terms.
19. Compliance. The City and $ank shall comply
fully ith al'1 state, federal and local regulations appli-
cable o loans, including, but not limited to, truth-in-
lendin and similar requirements and any requirements of or
limita ions established by the Federal Deposit Insurance
Corpor tion, Board of Governors of the Federal Reserve
System, Federal Mousing Administration, Veterans Administra-
tion, ederal Insurance Administration, Department of Housing
and IIr an Development, and such other agencies having
lz.
~ 2281
'urisdi tion over Bank and the City and loans of the type
~contemp ated hereby.
20. Attorneys' Fees. Each party hereto agrees
that in the event of its default under this Agreement, it
will reimburse the other party for all expenses (including,
without limitation, attorneys' fees) incurred by such party
in connection with the enforcement of its rights hereunder.
21. Notices. Any conununication between the
parties hereto may be given by mailing the same, postage
~repai to the following addresses:
BANK: Crocker National Bank
481 Broadway
P. 0. Box-1415
Chula Vista, California 92012
Attn: Branch Manager
and Crocker National Bank
Consumer Loan Administration
300 Montgomery Street
San Francisco, California .94104
CITY: City of Chula Vista
2 76 Fourth Avenue
Chula Vista, California
92010
Attn: Community Development
Director
or to uch other address as either party may, in writing
hereaf er indicate.
13.
1'77 Q'
22. Entire Agreement. This Agreement and any
agreeme t, document or instrument attached hereto or referred
to herein, integrate all terms and conditions mentioned
herein r incidental hereto and supersede all oral negotia-
tions or prior writings with respect to the subject matter
hereof. In the event of any conflict between the terms,
conditions and provisions of this Agreement and any other
such a reement, document or instrument, the terms, condi-
tions nd provisions of this Agreement shall prevail.
23. Governing Law. This Agreement shall be
govern d by and construed in accordance with the laws of the
State f California.
24. Successors. This Agreement shall be binding
upon t e successors in interest of the parties hereto.
Neithe party may assign its rights or obligations hereunder
withou the prior written consent of the other.
25. Time. Time is of the essence of the perfor-
mance ereof. '
26. Authorization. The terms and conditions
hereof were fully considered at a regular Council meeting of
the Ci y held on the 15th day of August 1978, and
were a proved and this Agreement was authorized for execu-
tion, ursuant to City Council. Resolution No. 8228 ~,
duly m de, seconded and carried. A certified copy of said
resolu ion is attached hereto as Exhibit "A" and by this
refere ce made a part hereof.
14.
o~., ,.i
-TTEST:
Executed the day grid year first above written.
CITY OF C LA VISTA
By , ~-
Gregory x, Mayor Pro Tempore
By
nie Z, Fula(sz, City Cle~ CROCKER NATIONAL BANK, a
national banking association
B ~~
Y _ _
~~ -- Pres~' nt
PROVEp AS '.~0 FORM
eo ~e D, Lindberg
Ci y Attorney,
Ci v of Chula Vista
15.
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