Loading...
HomeMy WebLinkAboutReso 1978-9229r RESOLUTION N0. '92~`~ 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 FOR MOBILE LIVING UNITS AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS solve as C C The City Council of the City of Chula Vista does hereby follows: NOW, THEREFORE, BE IT RESOLVED that those certain agreements edit Ag Bement and Agency Agreement) between the City of Chula Vista and cker Na Tonal Bank, a California Corporation, for services relative to the y's Com unity Housing Improvement Program dated the 15Ty day of GUS T 191$ copies of which are attached hereto and incor- ate he Bin, t e same as though fully set forth herein be, and the same are eby app oved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista b and he is hereby authorized and directed to execute said agreements for and on beh if of the City of Chula Vista. Presented ~y Approved as to form by •'~ ~~~~K /~ 1 G. De rochers, Community George D - indberg, City Attorney // ~lopmen Director OPTED AND APPROVED 8Y THE CITY COUNCIL OF THE CITY OF CALIF RNIA, this 15TH day of- Auru~r the fol owing vote, to-wit: Coun ilmen ; EGDA1iL, GILLOW, SCOTT, COX Coun ilmen : NONE Coun 'Imen NONE Coun ilmen : HYDE __ PRO TEMPOR ' I (/ 4 C ty Clerk IFORNI ) ~N DIE ) ss. VISTA ) JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, =RTIFY that the above and foregoing is a full, true and correct copy of ,and that the same has not been amended or repealed. City Clerk CC-660 ~~ j ~/; ~, AGENCY AGREFMF:NT (Deferred Payment Loans) THIS AGENCY AGREEMENT (the "Agreement") is made and ated this 15th day of August 1978, by and bt~tw 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 "Loan A. The City desires to make certain loans (the i(s)") to qualified applicants to enable such applicants to r habilitate and purchase mobile homes and recreational vehi les (the '"Vehicle(s)"). Said Loans are to be made on term and subject to conditions established by the City and itlz funds of the City allocated to its Mobile i~ome Rehabilitation Loan Program (the "Deferred Payment Program Fund ") and each Loan is to be secured by a security interest in t e Vehicle for which the loan is made. B. The City h~:is req~~ested. E~ank to provz:de it with certain services relating to the documentation for the Loan , which services are described more particularly below. :1. '2Z p' the A G R E E M E N T Recit C. Bank has agreed to provide such services on erms and subject to the conditions contained herein. NOW, THEREFORE, i.n consideration of the above :als and the covenants and agreements contained herein, the parties hereto hereby agree as follows: 1. Upon receipt of written request by the City that Bank act as its agent in preparing docwnentation for a Loan which request shall be in the form of that attached here o as Exhibit A and by this reference made a part hereof (a equest"~, Bank shall prepare and make available for exec tion by the proposed borrower a promissory note in the form of that attached hereto as Exhibit B, as well as such other documentation for the Loan as it would utilize in enting loans of a similar nature for its own account, ~ahicl~ documentation shall incorporate the terms and conditions set orth on the accompanying Request submitted by the City. Upon. execution of the documentation by a borrower, Bank shall depo it with the California Department of Motor Vehicles the cert'ficate of ownership for the Vehicle for which the Loan is of ~ be made, or an application for original registration ze Vehicle, with the City shown as legal owner thereon. 2. X22 `~ Thereafter, Bank shall deliver to the 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 cond'tioned upon there being at the date of execution of the tation for such loan by a borrower, Deferred Payment Prog 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 Gene al Account in the prinicpal amount of the Loan and steal credit such amount to a second demand account with Banc in the City's name (the "Deferred Payment Disburse- went Account"}, from which Deferred Payment Disbursement Acco nt the City shall disburse the Loan funds from time to t'me as agreed between the borrower and the City. 3. Bank's sole obligation hereunder shall be to p~rform the services specified in Paragraph 1 hereof with reasonable diligence, and it shall have no responsi- bili y for or liability to the City or any third party ~~iis'ng out of or with respect to (a} the administration or c llection of the Loans; (b} the legal sufficiency for any urpose or the enforceability of any provisions of the documentation prepared and supplied by Bank hereunder; 3. X229 Cc) rela ank's failure to comply with any Laws or regulations ing to such documentation or the Loans; or (d) the performance or non-performance of any act or thing therein provided. 4. The City hereby agrees to indemnify and hold Bank harmless from and against any and all liabilities, clams, obligations, costs and expenses (including, without limi ation, reasonable attorneys' fees) which Bank may incu whether to the City or third parties, arising out of, rela.ing to or connected with any action taken or omitted to be taken by Bank hereunder, except liabilities, claims, obligations, casts and expenses resulting from Bank's gross negl~.gence and willful misconduct. 5. In connection with each Loari for which Bank 9~~4 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 promptly pay to Bank, upon demand, all costs and xpenses, including, without limitation, recording, notarial, title report and attorneys' fees, if any, incurred by Bank in connection with the Loans. All such amounts shall be paid by Bank debiting the General Account promptly upon execution of the documentation for any Loan or demand 4. for uch costs and expenses in such amounts; provided, howe er, that if funds in the General Account are insuffi- cien to cover such amounts, the City shall, promptly upon noti ication of the deficiency, pay the deficiency to Bank in fill. 6. Bank's obligation tv perform any services here nder is conditioned upon it having received, on or befo e the date the first Request is submitted to it by the City, an opinion of the City Attorney that: (a) The City has all requisite power and r authority to enter into and pe'form this Agency Agreement; ~` (b) The City has taken all action as may be required for 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. 7. This Agreement and Bank's obligations herei znder shall terminate upon the earlier to occur of: (a) The termination of that certain credit agreement between Bank and the City dated concurrently herewith; or 5. 9ZZ9' (b} The thirtieth (30th} day following such termination, Bank shall deliver all documentation rela ing to the Loans then held by Bank to the City and, upon such delivery, Bank shall have no further obligation hereunder or u~der any other agreement to which Bank and the City are parties, or otherwise, with respect to the Loan. Such termination shall not affect the obligations of the City set fort in Paragraphs 4 and S hereof, which obligations shall surv've such termination. 8. Each party hereto agrees that in the event of i s default under this Agreement, it will reimburse the other party far all expenses (including, without limitation, attorneys' fees} incurred by such party in connection with tree enforcement of its rights hereunder. 9. Any communication between the parties hereto may fol e given by mailing the same, postage prepaid, to the owing addresses: TO BANK: TO THE CITY: 276 Fourth Avenue Chula Vista, CA 92010 Upon) receipt by Bank of notice from the City of the City's election to terminate this Agreement. Crocker National Bank Attn: Branch Manager _481 Broadwav P. 0. Box 1415 f;h~a,,l~,. Zli ~ t a_ C',A 9 2..Q 1 2 City of Chula Vista Attn: Comm Dev Director 6. 9Zz or such other address as either party may, in writing, here~Ifter indicate as provided herein. 10. This Agreement and any agreement, document or i strument attached hereto or referred to herein, lIlte rate all terms and conditions mentioned herein or inci ental hereto and supersede all oral negotiations or prio writings with respect to the subject matter hereof. In t e event of any conflict between the terms, conditions and rovisions of this Agreement and any otr~er such agree- ment document or instrument, the terms, conditions and provisions of this Agreement shall prevail. Il. This Agreement shall be governed by and cons rued in accordance with the laws of the Mate of California. 1l. This Agree~»ent shall. be bindil~g upon. the succ ssors in interest of the parties hereto. Neither part may assign its rights or obligations hereunder with ut the prior written consent of the other. 13. Time is of the essence of the performance hereof. 7. 9~2 and ~ Executed at Chula Vista rear first above written. California, the day CROCKER NATIONAL BANK (the "Bank") By ~_ CITY OF CHULA VISTA (the "City") . By ~" Gregor R. Cox, Ma or Pro Tempore 8. 9??9 EXI~IBIT A RE UEST T0: Crocker National Bank (11Bank") l~ROM City of ~ {the "City") Pursuant to the terms of the Agency Agreement date 19_, by and between City a.nd Bank, the City hereby notifies Bank that it desires to make a loan (the "Loan"} to the borrower(s) named below and requests Banl~ to provide those services relating to the Loan that it a reed to provide in the Agency Agreement, including docu enting the Loan. The documentation for the Loan. shall incorporate the erms and conditions set forth herein. 1. The funds advanced to the borrower(s) by the City pursuant to the Loan shall bear no interest; provided, howe er, that any amount not paid when due shall bear inter- est t the rate of seven percent (7%} per annum. 2. The City shall be named as secured party under a se urity agreement covering the mobile home or recreational A-1 92Z vehi le for which the Loan proceeds are to be used (the "Vehicle"). 3. The City hereby agrees that it does not requ't^e, as a condition of. making the Loan, receipt of ari appr isal of tY3e Vehicle. 4. The name and address of the borrower(s) are 5. The Vehicle is 6. The net loan amount is to be $ 7. The loan is to be evidenced by a promissory note which is to be payab]_e upon the sale, conveyance, assi ent, hypothecation or other transfer to any party(ies) of a y interest of the borrower(s) in the Verlicle. II. The City does/does not require that property insu once be furnished covering the Vehicle. 9. The City represents that the information cant fined herein accurately and completly sets forth the term and conditions of the Loan which the City dsi.res to make to the above-name borrower(s), and the City hereby A-2 qZZ exp ssly agrees that Bank may rely on such representation in ps~eparing the documentation for the Loan. CITY OF By A-- 3 9zzG EhHIBIT B PROMISSORY NOTE "~ California 19 FOR VALUE RECEIVED, the undersigned hereby promises to p y to THE CITY OF or order ("Holder"}, upon the sale, conveyance, assignment, hypothecation or othe transfer to any party(ies) of any interest of the under- sign d in the property described in the security agreement exec ted this date by the undersigned and referred to below, the riricipal sum of DOLLARS ($ ), without interest thereon; provided, however, t%~at t:he undersigned shall pay interest, upon demand, on any amou t not paid when due at the rate of SEVEN PERCENT (7%) per annul. All payments hereunder shall be made in lawful money o.f t e United States of America at the office of Holder at California (or uch other place as Holder may from time to time desig- nate in writing}. The undersigned may prepay this Note, in whole or in p~a:t, at any time without premium or penalty. D_Z ~ ~ l 9' Presentment, demand, protest and notice are hereby expr ssly waived by the undersigned. Should payment hereof not e made when due, the undersigned further promises to pay 11 costs of collection, including, without limitation, atto Heys' fees, incurred by Holder in connection herewith. This Note is secured by a security agreement, dated ronrt.rrently herewith, by and between the undersigned, as debt r, and Holder, as secured party, reference to which is here y made for additional terms and conditions affecting this Note. This Note shall be governed by and construed in acco dance with the laws of the State of California. If the unde signed is more than one, each covenent and obligation cont ned herein shall be joint and several. Borrower Borrower B-2 9~~ /,, ~~ _~ 1 - MOBILE LIVING UNI'~ REHABILITATION CREDIT AGREEMENT THIS MOBILE LIVING UNIT REHABLLITATION CREDIT-AGREEMENT ( he "Ag Bement") is made and dated this 15th day of August, 1978, b and b tween THE CITY. OF CHULA VISTA, a municipal corporation. ( he "CI Y"), and CROCKER NATIONAL BANK, a national banking a s oc i at on ("Bank") RF('TT~T C A. On August 22, 1974 Congress passed Public Law 9 -383, ommonly known as the "Housing and Community Development A t of 1 74" (as amended from time to time., the "Act"). B. Pursuant to the Act, the City applied for funds to i plemen among other things, a program providing low interest 1 ans to City-approved applicants for the general purpose of h using ehabilitation. C. The Department of Housing and Urban Development r Gently approved the City's application. Certain of the funds r leased to the City under the Act have been allocated by the C'ty for a program through Bank to assist certain City-approved a plican s to purchase or rehabilitate mobilehomes and recreational v hicles (the "MARY Program"). Any and all funds received by the C'ty and r the Act and allocated by the City for implementation o the V Program will be referred to herein as the "MARV Loan P ogram unds." D. The City and Bank have .now reached an agreement th reg rd to Bank's participation in the MARV Program. The nk has agreed to make loans to City-approved applicants whom e Ban determines to be creditworthy. In consideration of nk's participation in the MARV Program, the City has agreed to ep the MARV Loan Program Funds on deposit with Bank and to bsidize and guarantee certain low interest loans pursuant to e MAR Program, all as provided more specifically in this eemenlt . ~~ ~ n a~d the p rties NOW, THEREFORE, in consideration of the above Recitals itual covenants and conditions contained herein, the Preto hereby agree as follows: AGREEMENT tY its AgrE 1. Definitions. The following terms are defined in cement as indicated below: Act. Recital A. Additional Information. Paragraph 6.(c). Aggregate Discount. Paragraph 9. Appraised Retail Value. Paragraph 6.(c)(iv)e. Assigned Interest Rate. Paragraphs 6.(c)(i) & 7. Certificate of Ownership. Paragraph 8.(c). Class A Loan. Paragraph 6.(c)(i)a. Class B Loan. Paragraph 6.(c)(i)b. DMV. Paragraph 4.(a). 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). HCD. Paragraph 6.(c)(iv)e. Loss Reserve Amount. Paragraph 10.(a). Manufacturer's Invoice Price. Paragraphs 6.(c)(v)b & c. MARY Loan Program Funds. Recital C. MARV Program. Recital C. Mobilehome. Paragraph 4.(a). New Mobilehome. Paragraph 4.(a). New Recreational Vehicle. Paragraph 4.(c). Note. Paragraph 8.(a). Recreational Vehicle. Paragraph 4.(c). -2- •~~n Security Agreement. Paragraph S.(b). Used Mobilehome. Paragraph 4.(b). Used Recreational Vehicle. Paragraph 4.(d). 2. Loan Program Funds. The City hereby confirms and r presen s that it has duly allocated MARV Loan Program Funds in t e amou t of $100,000 to the MARV Program with Bank. 3. Loan Commitment. On the terms and subject to the c nditio s contained herein, Bank hereby commits funds in the a ount o $250,000 to be loaned, pursuant to the MARV Program, to a plican s recommended to Bank by the City and deemed creditworthy b Bank. 4. Loan Maximum. Loans under the Program will be ode in amounts up to: (a) When the proceeds of the loan are to be used to urchase a vehicle which is (i) designed and equipped to con ain no more than two dwelling units to be used without a per anent foundation, and (ii) wider than 8 feet or longer tha 40 feet (a "Mobilehome"), and which (i) has not been pre iously registered with the California State Department of otor Vehicles ("DMV") and (ii) will be purchased from a dea er as new (a "New Mobilehome"), the applicable sales tax and license fees chargeable to the borrower, plus the lesser of (i) eighty percent (80%) of the cash selling price (as set forth in the proposed purchase contract furnished to Ban pursuant to paragraph 6(c)(v)a below), and (ii) one hun red percent (100%) of the Manufacturer's Invoice Price (as defined in Paragraph 6.(c)(v)b below). (b) When the proceeds of the loan are to be used for rehabilitation work on a Mobilehome which is not a New Mobilehome (a "Used Mobilehome"), eighty percent (80%) of the Appraised Retail Value (as defined in Paragraph 6.(c)(iv)e bel w) of the Mobilehome; -3- r~ ~ o (c) When the proceeds of the loan are to be used to urchase a travel trailer which (i) is without motive pow r, (ii) is designed for human habitation for recreational or mergency occupancy, and (iii) has a living area less tha 220 square feet, excluding built-in equipment such as war robes, closets, cabinets, kitchen units or fixtures, bat and toilet rooms (a "Recreational Vehicle"), and which (i) has not been previously registered with the DMV, and (ii will be purchased from a dealer as new (a "New Recrea- tio al Vehicle"), the applicable sales tax .and license fees cha geable to the borrower, plus the lesser of (i) eighty per ent (80%) of the cash selling price (as set forth in the pro osed purchase contract furnished to Bank pursuant to par graph 6(c)(v)a below), and (ii) one hundred percent (10 %) of Manufacturer's Invoice Price (as defined in Para- gra h 6(c)(v)c below). (d) When the proceeds of the loan are to be used for rehabilitation work on a Recreational Vehicle which is not a New Recreational Vehicle (a "Used Recreational Vehi- cle'), if the Recreational Vehicle is a current year model, one hundred percent (100%) of the wholesale value (as defined bel w) thereof, and if the Recreational Vehicle is not a cur ent year model, ninety percent (90%) of the wholesale val e thereof. The term "wholesale value" shall .mean the val e of the Recreational Vehicle at the date the loan is mad determined by Bank by reference to a standard reference boo commonly used in determining such values. S. Deposit of Funds. As a condition precedent to B nk's o ligations hereunder, the City shall deposit with Bank a y and 11 MARV Loan Program Funds allocated to the MARV Program b the C'ty from time to time. The City hereby grants to Bank a s curity interest in the MARV Loan Program Funds and in all a counts in which such funds may be held from time to time for t e purp se of securing each and all of the City's obligations u der th's Agreement. Said MARV Loan Program Funds shall be d posite in such proportion as the City shall determine (subject t the p ovisions contained in this Agreement) in the following -4- ~~ n a counts the terms and conditions of which shall be established b Bank nd the City: the the the (a) A demand account which shall be designated as "General Account"; (b) A demand account which shall be designated as "Guaranteed Loan Account"; (c) A demand account which shall be designated as "Disbursement Account"; and (d) Such other accounts upon which the City and Ban may agree, including, without limitation, accounts whi h bear interest at the prevailing interest rates and on the prevailing terms and conditions. S 1 f ibject o the account balance requirements set forth in Paragraph _(b) be ow, the City may make withdrawals of Loan Program Funds °om tim to time. 6. Responsibilities of the City. In connection with e ch pro osed loan and loan applicant under the Program: (a) The City shall assist the loan applicant in com leting the loan application form supplied by Bank. (b) Prior to submission of any applicant's loan app ication form, the City shall determine the applicant's eli ibility for the MARV Program and the amount of the loan req fired. to (t (c) The City shall furnish to Bank with respect each loan application the following items and information "Additional Information"): (i) Written indication of the rate of interest which the City has determined shall be charged to the proposed borrower by Bank 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, -5- ~~ ~ q a. 7.00 (a "Class A Loan"); or b. 3.00 (a "Class B Loan"); (ii) Evidence satisfactory to Bank that an insurance policy or policies with coverage, maximum amounts and deductible satisfactory to Bank, is in full force and effect covering the Mobilehome or Recreational Vehicle with insurers and having a named loss payee satisfactory to Bank; (iii) Written certification of the City that no person or entity .(other than, in the case of a Used Mobilehome or Used Recreational Vehicle, the borrower, and in the case of a New Mobilehome or New Recreational Vehicle, the dealer) claims an interest in the Mobilehome or Recreational Vehicle including, without limitation, an interest under California Civil Code Section 3051 or 3068 pertaining to possessory liens on personal property; (iv) When the proceeds of the loan will be used for rehabilitation work on a Used Mobilehome or a Used Recreational Vehicle: a. Detailed estimates of the costs involved in the rehabilitation work to be performed on the applicant's Mobilehome or Recreational Vehicle; b. A description of the work to be performed; c. Written certification of the City, together with a copy of the certificate of ownership issued by the DMV showing, that the Mobilehome or Recreational Vehicle is currently registered with the DMV and all registration and license fees have been paid to date; -6- >> d. A copy of the proposed contract between a licensed contractor and the applicant for the rehabilitation work, or, in the absence of a proposed contract, a copy of the lowest acceptable bid from a licensed contractor proposed to be reduced to contract form; and e. In the case of a Mobilehome, (x) an appraisal by a qualified appraiser setting forth the appraised retail value of the Mobilehome (the "Appraised Retail Value" for such Mobilehome), and (y) written indication of whether the appli- cant's Mobilehome bears the insignia of the Cali- fornia Department of Housing and Community Develop- ment ("HCD"), or the Title VI (federal) label provided for in 24 CFR § 3282.362(c), as amended from time to time; f. In the case of a Recreational Vehicle, a certified statement of the City stating (x) the model year of the Recreational Vehicle, and (y) whether the applicant's Recreational Vehicle bears the insignia of HCD; and ~. In any case in which the vehicle bears the insignia of HCD or the Title VI (federal) label, a copy of the completed form entitled Application For Alteration or Conversion, Form HCD 413, which has been or will be submitted to the Division of Codes and Standards, Mobilehome Section of HCD; provided, however, no such application need be completed if the City in good faith certifies in writing that Title 25 of the California Administrative Code does not require that such application be filed; (v) When the proceeds of the loan will be used to purchase a New Mobilehome or a New Recreational Vehicle: -7- a. A copy of the proposed purchase contract between the mobilehome or recreational vehicle dealer and the applicant, together with the escrow agreement, which complies with Section 11950 of the California Vehicle Code and Title 25 of the California Administrative Code, Sections 4049.1 et sew., the Rees-Levering Motor Vehicle Sales and Finance Act, California Civil Code Sections 2981 et seg., all as amended from time to time, and all other applicable laws and regulations; b_. In the case of a Mobilehome, (x} a certified statement of the City setting forth the manufacturer's invoice price of the Mobilehome to such dealer (the "Manufacturer's Invoice Price" for such Mobilehome), and (y) evidence satisfactory to Bank that the Mobilehome bears the Title VI (federal) label provided for in 24 CFR 3282.362(c), as amended from time to time; c. In the case of a Recreational Vehicle, (x) a certified statement of the City setting forth the manufacturer's invoice price of the Recreational Vehicle to such dealer (the "Manufacturer's Invoice Price" for such Recreational Vehicle), and (y) evidence satisfactory to Bank that the Recreational Vehicle bears the insignia of HCD; (vi) Waivers, in form and substance satisfac- tory to Bank, in its sole discretion, of any interest of any person or entity (other than the borrower and Bank) in the Mobilehome or Recreational Vehicle, includ- ing, without limitation, an interest by virtue of California Civil Code Section 3051 or 3068 pertaining to possessory liens on personal property; and (vii) Written indication of the location or proposed location of the Mobilehome or Recreational Vehicle. -8- 'Z z 9 (d) The City shall retain control over, and give Ban written authorization for, the disbursement of loan pro eeds, which disbursements shall be made by Bank only upo such written authorization to the Disbursement Account or esignated fund control, as the case may be. (e) The City shall: (i) Through appropriate departments, fully and promptly inform Bank of: a. Construction progress on Used Mobilehomes and Used Recreational Vehicles, and will submit, when applicable, to Bank a copy of the completed HCD Form 415, Application for Re- quested Inspection, which has been or will be sent to the Division of Codes and Standards, Mobile Home Section of HCD; b. Compliance with the provisions of the California Health & Safety Code, Sections 18000 et sec. and Title 25 of the California Administrative Code, Sections 400.0 et seq. and 5000 et sec., the Mobilehome Construction and Safety Standards Act, Title VI of the Act and the regulations issued pursuant thereto, and compliance with other applicable codes and regulations; c. The issuance of any notice of violation by HCD to the registered owner of the Mobilehome or Recreational Vehicle and the reasons therefor; d. Any other information reasonably requested by Bank; and (ii) Assume all responsibility for assuring that: -9- ~ ~, a. Work done is in accordance with the MARY Program, and b. At no time will any person violate Section 18550 of the California Vehicle Code pertaining to unlawful use of mobilehomes. (f) When the proceeds of the loan will be used for rehabilitation work on a Used Mobilehome or a Used Rec eational Vehicle and no Application for Alteration or Con ersion has been made to HCD, the City shall be responsible for inspecting the work and assuring that the work would mee the standards of HCD if the vehicle were inspected by HCD 7. Credit Evaluation. Bank shall perform its standard c edit e aluation with respect to each applicant, make its judgment w th res ect to the creditworthiness of such applicant, and i form t e City of its decision relating thereto. If Bank approves a appli ation for a loan under the MARV Program, it shall indicate i s cred t decision to the City and shall undertake to process t e loan in accordance with the provisions of this Agreement. In t e even Bank does not approve an application for a loan under t e MARV Program, it shall so inform the City and that decision s all be final; provided, however, that in the event any applica- t on so eclined is resubmitted by the City with the written d rectio of the City to make the loan requested in the application ( "Guar nteed Loan"), Bank shall make such Guaranteed Loan. A G arante d Loan shall bear interest at an annual percentage rate 0 7.00 r 3.00, as determined by the City and indicated to Bank i writi g (which rate shall be the "Assigned Interest Rate" for s ch Gua anteed Loan) and shall be subject to, in addition to all t rms an conditions of this Agreement, the special terms and c nditio s relating to a Guaranteed Loan set forth herein. u der th t e foll 8. Loan Documentation and Provisions. Each borrower Program shall execute or endorse and deliver to Bank ing: -lo- -- (a) A promissory note in the form of Bank's sta dard form of promissory note for loans of this type (the "No e"). Interest payable under the terms of the Note shall be t the Assigned Interest Rate and the Note shall provide for repayment in equal monthly installments of principal and int rest of not less than $30.00 each (or in extraordinary cas s at the written request of City and in Bank's discretion, $20 00 each) over a term of not longer than one hundred eig ty (180) months, as the borrower and Bank shall agree; (b) A security agreement in the form of Bank's sta dard form of security agreement for collateral in the nat re of mobilehomes and recreational vehicles (the "Security Agr ement"); (c} Such documentation as Bank, in its sole dis retion, deems necessary to have Bank listed as legal own r of the Mobilehome or Recreational Vehicle, which doc mentation Bank is hereby authorized to file with the DMV (d) Such other documentation as Bank may, in its dis retion, require, including, without limitation, waivers of ersons or entities with an interest in the real property upo which the Mobilehome or Recreational Vehicle is or may be ocated. 9. Interest Subsidy. At the time of execution of e ch Not evidencing a loan which is not a Guaranteed Loan, the C'ty sha 1 pay to Bank an amount, discounted on the basis of f ture c sh flow to determine present value, equal to the differ- e ce bet een: (a) the aggregate amount of interest which would be ayable on the Note during the term thereof at an annual per entage rate of 11.00, and (b) the aggregate amount of interest payable on the Note during the term thereof at the Assigned Interest Rat . -11- .,- - Such shal nt. 10. Loss Reserve Provisions. At the date of execution o a Not the Bank shall transfer the following amount: ~~~ (a) If the loan is a Class A or Class B Loan, an amo nt (the "Loss Reserve Amount") equal to ten percent (10°) of the aggregate outstanding balance of the Note at suc date shall be transferred to a general ledger account of ank (the "General Ledger Account") by Bank debiting the Gen ral Account and crediting the General Ledger Account in the Loss Reserve Amount; or (b) If the loan is a Guaranteed Loan, an amount equ 1 to one hundred percent (100%) of the aggregate outstand- ing balance of the Note at such date shall be transferred to the Guaranteed Loan Account by Bank debiting the General Acc unt and crediting the Guaranteed Loan Account in such amount. at shall be referred to herein as the "Aggregate Discount" be paid by Bank debiting the General Account in such 11. Conditions Precedent. Notwithstanding any provision greement, Bank's obligation to make any loan under the s conditioned upon: o this P ogram (a) Bank having received the Additional Information wit regard to such loan. (b) There being at the date of execution of each Not and following the transfer of funds as required under Par graph 10 above: (i) funds in the General Ledger Account in an amount not less than ten percent (10%) of the aggre- gate outstanding balances of all Class A and Class B Loans under the Program, including, if applicable, the loan (of whatever Class, if any) to be evidenced by such Note; and -12- (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 the loan to be evidenced by such Note if a Guaranteed Loan. 12. Loan Prepayments. Upon prepayment of any loan u der th MARV Program, in whole or in part, Bank shall report to t e City and credit to the General Account an amount, if any, e ual to the unearned portion at the time of such prepayment of t e Aggr gate Discount attributable to such loan, calculated in a Gordan e with the Rule of 78's. 13. Adjustment of Account Balances. As of June 30, 1 79, an annually thereafter, Bank shall review (a) the aggregate L ss Res rve Amounts at that time held in the General Ledger A count, and (b) the balance of the Guaranteed Loan Account, and s all re ort to the City and credit to the General Account any f nds ov r and above those required by the terms of Paragraph 11(b) a ove to be held in such Accounts. 14. Default. In the event any loan made by Bank under t e Prog am remains in default for a continuous period of ninety ( 0) day on account of non-payment of any sum of money due p rsuant to the terms of the Note or the Security Agreement, the C'ty sha 1 pay to Bank, at such time as Bank may, in its sole d'screti n, demand, the following amount: (a) If the loan is not a Guaranteed Loan, the les er of the then outstanding balance of the loan and the agg egate funds then credited to the General Ledger Account, whi h amount shall be paid by Bank charging said amount against funds then held in the General Ledger Account; or (b) If the loan is a Guaranteed Loan, the lesser of he then outstanding balance of the loan and the aggregate fun s then held in the Guaranteed Loan Account, which amount sha 1 be paid by Bank charging said amount against funds the. held in the Guaranteed Loan Account. -13- ~~ _ _ I cases in which all or a part of the loan is charged against f nds he d in the Guaranteed Loan Account or the General Ledger A count, at such time as the outstanding balance of the loan is p id in ull, whether by charging all or a part of such loan a ainst unds held in such Accounts, or upon Bank's exercise of a y righ s it may have at law or in equity, or pursuant to the N to and or Security Agreement relating thereto, or otherwise, B nk sha 1 deliver to the City (a) the Note, duly endorsed by B nk to he City, without recourse or warranty, (b) an assignment b Bank o the City of Bank's rights under the Security Agreement, a d (c) he Certificate of Ownership duly endorsed by Bank to the C ty. U on the delivery of the Note, the assignment of the S curity Agreement and the Certificate of Ownership to the City, B nk sha 1 have no obligation or responsibility to the borrower o the C ty with regard to such Note, Security Agreement, Certifi- c to of wnership or the loan evidenced by such Note. 15. Extent of Obligations. The City's obligations u der Pa agraph 14 above are absolute and unconditional. The C'ty, to the extent permitted by law, hereby waives (a) any d fense f estoppel, lathes or any statute of limitations to such o ligati ns, and (b) any defense that may arise by reason of the i capaci y, lack of authority, or termination of existence or d ath of any borrower. The City also waives deferral of such o ligati ns arising by reason of the institution of proceedings b or ag inst a borrower under or pursuant to any federal or s ate ba kruptcy or insolvency law or other law relating to the r lief o debtors generally, and waives any defense to such o ligati ns that it may have as a result of Bank's election of or f ilure o exercise any right, power or remedy, including without 1'mitati n, the failure to proceed first against the borrower or a y secu ity it holds for the obligations of the borrower to B nk, or the failure to exercise diligence in collecting sums due u der an Note or to realize on any Security Agreement, even when s ch ele tion or failure impairs or alters the rights of the City a ainst he borrower. The City hereby authorizes Bank, without n tice o demand or without affecting the City's obligations h reunde from time to time: (a) to renew, extend, increase, a celera e, compromise, modify or change the time for payment or -14- M i+ i+. t e term of any Note; (b) to take and hold additional collateral f r the ayment of any Note and to release such collateral; ( ) to a cept and hold any endorsement or guaranty of payment of a y Note; and (d) to release and substitute any such endorser or g aranto or any party who has given any security interest in a y addi Tonal collateral as security for the payment of any N te, or any other party in any way obligated to pay any Note. T e City hereby waives all presentments, protests, demands and n tices whether required by statute or otherwise) of nonperfor- m nce or of other default, dishonor, extension of credit and of e ery of er kind and nature. 16. Term. The initial term of this Agreement shall be f om the date of execution hereof through June 30, 1979. This A reemen shall automatically be renewed annually thereafter for s ccessi e one year terms unless terminated as provided in Para- g aph 17 below. The terms and conditions of the agreement, as r newed, shall be identical with the terms and conditions of this A reemen except as modified by the parties hereto in writing p for to such renewal date. 17. Termination. Notwithstanding any provision c ntaine herein, this Agreement may be terminated by either p rty he eto at any time upon sixty (60) days' prior written n tice t the other party. Any termination of this Agreement s all no affect the rights of Bank or obligations of the City h reunde with respect to loans made pursuant to the MARV Program p for to the effective date of such termination. 18. Opinion of City Attorney. As a condition precedent > Bank' obligations hereunder, the City shall at the date of ~ecutio hereof, at each renewal date and upon the amendment of iy provision hereof, furnish to Bank an opinion of the City =torney that: t to (a) The City has all requisite power and authority ter into and to perform this Agreement; -15- 'jn ~s rr regi (c) This Agreement and any instrument or document to hich the City is a party, as contemplated by this Agree- men are or will become upon execution thereof by the City val'd, binding and enforceable in accordance with their res ective terms; and (d) The use of MARY Loan Program Funds for the pur oses and in the manner contemplated herein conforms to and complies with the requirements of the Act and the regula- tio s issued pursuant thereto and of any and all agreements bet een the City and any governmental entity with respect to the use of MARV Loan Program Funds. 1., ~ n t e even t e othe a torney ' e forcem r. (b) The City has taken all action as may be tired for the execution, delivery and performance hereof; 19. Attorneys' Fees. Each party hereto agrees that in of its default under this Agreement, it will reimburse party for all expenses (including, without limitation, fees) incurred by such party in connection with the t of its rights hereunder. 20. Notices. Any communication between the parties Preto m y be given by mailing the same, postage prepaid, to the ~llowin addresses: TO ANK: Crocker National Bank 481 Broadway P. 0. Box 1415 Chula Vista, California 92012 Attn: Branch Manager and Crocker National Bank Consumer Loan Administration 79 New Montgomery Street San Francisco, California 94105 TO ITY: City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 Attn: Community Development Director to such other address as either party may, in writing hereafter icate. -16- d current i tegrat h reto a r spect b tween a d any c nditi 22. Governing Law. This Agreement shall be governed b and c nstrued in accordance with the laws of the State of C liforn°a. Executed the day and year first above written. CITY OF C LA VI5TA gy Gregory r x, Mayor ro Tempore ST: By Fula~sz, City Cle -17- 23. Successors. This Agreement shall be binding upon t e succ ssors in interest of the parties hereto. Neither party m y assi n its rights or obligations .hereunder without the prior w itten onsent of the other. reof. 21. Entire Agreement. This Agreement and any agreement, or instrument attached hereto or referred to herein, all terms and conditions mentioned herein or incidental id supersede all oral negotiations or prior writings with ~o the subject matter hereof. In the event of any conflict she terms, conditions and provisions of this Agreement ether such agreement, document or instrument, the terms, is and provisions of this Agreement shall prevail. 24. Time. Time is of the essence of the performance 25. Authorization. The terms and conditions hereof w re ful y considered at a regular Council meeting of the City h ld on the 15th day of August 1978, and were approved a d this Agreement was authorized for execution, pursuant to City C uncil esolution No. g ? ~c~ duly made, seconded and carried. certified copy of said resolution is attached hereto as Exhibit " and y this reference made a part hereof. ~~~ ~ CROCKER NATIONAL BANK, a national banking association y, ~ is -Pre ent 'PROVED AS ore D. Lin Cit Attorney, Cit of Chula Vista -18- .w , ., .,. EXHIBIT RDI~G REQUESTED BY AND RE ORDED P.ETURN TO: OCKERINATIONAL BANK ttn: DECLARATION AND AGREEMENT CROCKER NATIONAL BANK ("Bank") , in conr~ecti_on with progr m between Bank and the City of Chula Vista intends o exte d credit to "Debto "). As security or its inde tedness to Ban , ebtor as executed a security agreement dated , 9 ( he "Security Agreement"), wherein Debtor grants t:o an~c a ecurity interest in (as indicated) a [~ mobilehome, r recreational vehicle, described more particularly .herein (the "Property"). The Property may be located upon he rea property described on Exhibit "A" attached hereto the "P emises") in which the undersigned has an interest as indicated) as ~ owner, /`7 lessee, ,~ or benefi- iary u der a deed of trust. In order to induce Bank to extend credit to Debtor, .he undersigned hereby agrees as follows: 1. The Property shall at all times be and remain erson 1 property, and not an accession or addition to or fixture on the Premises, regardless of the fact that it may e installed thereon or in any manner attached thereto, and he un ersigned shall acquire no title to or interest in the roper by virtue of any installation or attachment. 2. Any and all liens, claims, demands, rights or interests which the undersigned now has or hereafter acquires in, on or to the Property and all additions thereto and replac ments and substitutions therefor, including, without limita ion, the right to levy, distrain, take possession of ~r sel for unpaid rent, shall be and are hereby made sub- ~rdina e and inferior to any lien and security interest of Bank i the Property. 3. Bank may, at no expense to the undersigned, n acc rdance with the terms of agreements between Bank and ebtor, enter onto the Premises at any time or times and ake p session of, sever or remove the Property or any part hereo and said Property upon severance and/or removal may e sol , transferred or otherwise disposed of by Banle free end discharged of all liens, claims, demands, rights or ~ntere is of the undersigned. 4. Bank agrees to make such repairs caused by any se erance and/or removal of the Property to the extent reason bly necessary to restore the Premises to its condition immedi tely prior to such removal. 5. The undersigned agrees not to take any action to terninate the right of Debtor to have the Property located on the Premises without thirty (3U) days prior written notice to Bank. 6. All of the terms and conditions of this Declar tion and Agreement shall be binding upon the heirs, execut rs, administrators, successors and assigns or encum- brance s of the undersigned. If the undersigned are more than o e person or entity, the terms and conditions of this Declar tion and Agreement shall be binding upon them, jointly and se erally. 7. This Declaration and Agreement shall be govern d by and construed in accordance with the laws of State f California. Executed this day of 1978. the Acknowledged and Agreed to-this ay of 1978. "Debtor" NATIONAL BANK By Title "Bank" [All signatures must be acknocaledged] -2- a ~ ~ ~a