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Home My WebLink AboutReso 1982-11075 RESOLUTION 11075 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO AN AGREEMENT WITH THE BANK OF AMERICA FOR HOUSING AND COMMERCIAL. REHABILITATION WHEREAS, the City and the Bank of America have an existing agreement, dated September 15, 1981, regarding a property rehabilitation program, and WHEREAS, the City and the Bank have agreed to amend this agreement and extend same to August 1, 1983, and WHEREAS, the amendment will change various interest rates in the agreement to reflect current market conditions. NOW, THEREFORE, BE IT RESOLVED that the Citv hereby approves the Amendment to the Agreement as attached hereto and authorizes the Mayor to sign. ~~erg, City Community Development Director Attorney AP:dl WPC 0134X /it' }5 ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 16th day of November 19 82 , by the following vote, to-wit: AYES: Councilmen Moore, McCandliss, Scott, Cox, Malcolm NAYES: Councilmen None ABSTAI N: Councilmen None ABSENT: Councilmen None Mayor Cif of Chula Vista ATTEST City STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) s s. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION N0. 11075 ,and that the same has not been amended or repealed. DATED (seal) City Clerk CC-660 AMENDMENT TO PROPERTY REHABILITATION LOAN AGREEMENT COMPREHENSIVE FORM . THIS AMEndMENT is made by the CITY OF OHULA VISTA, a municipal corporation in the State of California (herein called "Authority") and BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, s national banking association (herein called "Bank"). RECITALS A. Authority and Bank, on September 15, 1981, entered into a Real Property Rehabilitatio~ Program, pursuant to which Bank is making below-market interest rate commercial, residential, and personal property (mobile home) rehabilitation loans ("Loans" or "Program Loans") to certain owners and/or occupants of real and personal property within Authority's target area and approved by Authority as recipents of Loans ("Applicants"). B. Pursuant to paragraph 9 and paragraph 11 of the Property Rehabilitation Loan Agreement, Bank proposes to change borrower interest rates for commercial and residential property rehabilitation loans. C. Pursuant to paragraphs 9, 11, and 13(a) of the Property Rehabilitation Loan Agreement, Bank reserves the right to automatically amend the borrower interest rates for commercial and residential property rehabilitation loans, effective January l, 1~83. D. Pursuant to Part Four of the Property Rehabilitation Loan Agreement, Authority and Bank have agreed to cancel the availability of Interest Subsidy Loans, contained in paragraphs 19 through 23, inclusive. E. Pursuant to paragraph 28(a) of the Property Rehabilitation Loan Agreement, Bank proposes to extend the maturity date of this Agreement. F. Bank wishes to amend the Loan Agreement to provide the terms herein agreed to. 1 NOW, THEEFORE, for and in consideration of the foregoing and the ~ 2 mutual agreements made herein, and for other good and valuable consideration, S Authority and Bank agree as follows: 4 1. Paragraph 9 of the Property Rehabilitation Loan Agreement is 5 amended to provide in its entirety, as follows: 6 "Upon coUpletion of its credit evaluation, Bank shall f~rnish 7 to Authority a recommendation whether to proceed with the Loan or not, S including: 9 (a) a recommendation as to use of either a Collateralized or ~0 Deferred Payment Loan, or some combination thereof; and 1~ (b) an indication of which of the following Loans (for which 12 Bank assumes all or part of the credit risk, as indicated parenthetically ~3 below) Bank is willing to make to Applicant: 1~ (1) For residential property improvement Loans: 15 (i) a 5.00% Collateralized Loan (15% credit risk); or 16 (ii) a 10.00% Collateralized Loan (50% credit risk) 17 (2) For commercial property improvement Loam, a 12.00% IS Collateralized Loan (60% credit risk)." 19 2. Paragraph 11 of the Property Rehabilitation Loan Agreement is 20 amended to provide in its entirety, as follows: 21 "Each Collateralized Loan shall be supported by a 22 noninterest-bearing deposit made by Authority to a Collateralized Loan 23 Account, an account that shall at all times be at least equal to: 24 (a) 100% of unpaid principal for each 3.00% Loan for which 2~ Bank has not designated the Applicant (pursuant to paragraph 9(b)) as a party 26 to whom Bank is willing to make a (partially) Collateralized Loan; 27 (b) 85% of unpaid principal for each 5-O0% Residential 28 Rehabilitation Loan; -2- 1 (c) 50~ of unpaid principal for each 10.00~ Residential 2 Rehabilitation Loan; S (d) 40% of unpaid principal for each 12.00% Commercial 4 Rehabilitation Loan; ~ plus, in each case, 100% of accrued unpaid interest. Authority hereby assigns 6 the Collateralized Loan Account to secure the Collateralized Loans." 7 3. Paragraph 13(a) of the Property Rehabilitation Loan Agreement S is amended to provide in its entirety: 9 "(a) On both the short-term commercial note and the installment 10 note, interest and other finance charges shall be such as to bear interest at 11 an annual rate of 3-00%, or 5.00%, or 10.OO%, or 12.00% calculated on a simple 12 interest basis." 1S 4- Effective January 1, 1983, paragraphs 9, 11, and 13(a) of the 14 Property Rehabilitation Loan Agreement will be automatically amended, to 15 provide in their entirety: 16 A) "9. Upon completion of its credit evaluation, Bank shall furnish to 17 Authority a recommendation whether to proceed with the Loan or not, including: 1S (a) a recommendation as to use of either a Collateralized, or 19 Deferred Payment Loan, or some combination thereof; and 20 (b) an indication of which of the following Loans (for which 21 Bank assumes all or part of the credit risk, as indicated parenthetically ~ below) Bank is willing to make to Applicant: ZS (li For residential property improvement Loans: 24 (i) a 5-00% Collateralized Loan (15% credit risk); or 25 (it) a 10.25% Collateralized Loan (50% credit risk) 26 (2) For commercial property improvement Loans 11-75% Z7 Collateralized Loan (60% credit risk)." 28 B) "11. Each Collateralized Loan shall be supported by a -3- noninterest-bearing deposit made by Authority to a Collateralized Loan Account, an account that shall at all times be at least equal to: (a) 100% of unpaid principal for each 3.00% 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) 85% of unpaid principal for each 5.00% Residential Rehabilitation Loan; (c) 50% of unpaid principal for each 10.25% Residential Rehabilitation Loan; (d) 40% of unpaid principal for each 11.75% Commercial Rehabilitation Loan; plus in each case, 100% of accrued unpaid interest. Authority hereby assigns the Collateralized Loan Account to secure the Collateralized Loans." C) "13- (a) On both the short-term commercial note and the installment note, interest and other finance charges shall be such as to bear interest at an annual rate of 3-00%, or 5.00%, or 10.25%, or 11-75% calculated on a simple interest basis." 5- Paragraph 28(a) of the Property Rehabilitation Loan Agreement is amended to provide in its entirety, as follows: "(a) The term of this Agreement shall mature on August 1, 1983- This Agreement may be terminated or amended by either of the parties hereto at six III III III III 111 III (6) month intervals from August 1, 1982, provided written notice of intent is given to the other party at least fifteen (15) days prior to the termination date.' IN WITNESS WHEREOF, this Amendment is executed by Authority actin~ by and through its City Council pursuant to Resolution No. 110Y5 authorizing such execution, and B~nk. Dated this 16th day of November , 1982. BANK OF AMERICA NATIONAL TRUST CITY OF CHULA VISTA AND SAVINGS ASSOCIATION Don Walsh Title:Mayor Of ~he City of C~ula Vista Title: Vice President-Statewide Head City Improvement and Restoration APPROVED AS TO FORM: Attached is a true and correct copy of the original Resolution: