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HomeMy WebLinkAboutResolution No. 139RESOLUTION NO. 139 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA, APPROVING AN AMENDMENT TO THE MORTGAGE SALE AND SERVICE AGREEMENT BETWEEN ATLAS CAPITAL CORPORATION, THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA, AND SECURITY PACIFIC NATIONAL BANK, DATED AUGUST 1, 1982 THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Board of Directors of the Redevelopment Agency of the City of Azusa does hereby approve the "Amendment to Mortgage Sale and Service Agreement" between Atlas Capital Corporation, the Redevelopment Agency of the City of Azusa, California, and Security Pacific National Bank, which is attached hereto as Exhibit "A" and incorporated herein as though set forth in full. SECTION 2. The Chairman is hereby authorized to execute said Agreement on behalf of the Agency. SECTION 3. The Secretary shall certify the adoption of this resolution. 1•:& PASSED, APPROVED AND ADOPTED this 4th day of June I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa at a regular meeting thereof, held on the 4th day of June 1984, by the following vote of the Board of Directors: AYES: NOES: ABSENT: DIRECTORS: DIRECTORS: DIRECTORS: CRUZ, COOK, CAMARENA, LATTA, MOSES NONE NON Ar 0 • 9 • ATLAS CAPITAL CORPORATION and REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA and SECURITY PACIFIC NATIONAL BANK AMENDMENT TO MORTGAGE SALE AND SERVICE AGREEMENT 00 9 • AMENDMENT TO MORTGAGE SALE AND SERVICE AGREEMENT This AMENDMENT TO MORTGAGE SALE AND SERVICE AGREEMENT is dated as of February 1, 1984. WHEREAS, Atlas Capital Corporation (the "Lending Institution"), Redevelopment Agency of the City of Azusa, California (the "Agency"), and Security Pacific National Bank, as Trustee (the "Trustee") entered into that Mortgage Sale and Service Agreement dated as of August 1, 1982 (the "Agree- ment") pursuant to which the Trustee was to purchase Mortgage Loans (as that term is defined in the Agreement) with the pro- ceeds of Redevelopment Agency of the City of Azusa, California, Single Family Residential Mortgage Revenue Bonds, 1982 Series A; and WHEREAS, the Lending Institution, the Agency and the Trustee are willing to approve an amendment to the Agreement. NOW, THEREFORE, the Agreement is amended as follows: 1. Section 4.01(d) is amended by deleting the words "and not more than 108 of all Mortgage Loans may have a Loan -to -Value Ratio in excess of 908". Section 4.01(d) as so amended is as follows: "(d) The Loan -to -Value Ratio for Mortgage Loans shall not exceed 958." 2. Article IV is amended by adding a Section 4.09 as follows: "Section 4.09. Permitted Buydowns of Interest Rate. A seller of a Residence may buy down the interest rate on the Mortgage Loan as an inducement to the Mortgagor to purchase the Residence, but only under the following conditions: (a) the buydown must comply with any appli- cable'FNMA and FHLMC credit underwriting practices; (b) either (i) the seller shall deposit money, in an amount sufficient for the buydown without taking into account interest, in an escrow account with a financial institution which is not the Lending Institution and which is insured by FDIC or FSLIC, in which case the escrow agreement shall require the escrow agent to make monthly payments to the Lending Institution for the account of the Mortgagor to meet the seller's obligations pursuant to the buydown, or (ii) the seller shall deliver to the Lending Institu- tion, an irrevocable letter of credit drawn on an AA -rated bank in favor of the Lending Institution, which irrevocable letter of credit (A) shall be for the term of the buydown period, (B) shall be in an amount sufficient to meet the seller's obligations pursuant to the buydown and (C) shall provide that, if the seller fails to meet its obligations pursuant to the buydown, the Lending Institution may draw on such irrevocable letter of credit in such amounts as may be necessary to meet such obligations; (c) the term of the buydown shall be no less than one year and no greater than five years, the buydown in the first year may not exceed 3%, reduction in the amount of the buydown must occur annually and no such reduction may exceed It per year; (d) the buydown shall comply with any . requirements imposed by the Private Mortgage Insurer; (e) the Mortgage Note and Mortgage may make no reference to the buydown, and the interest rate and monthly payments provided in the Mortgage Note may not take into account the buydown; (f) the escrow agreement must provide for reversion of escrowed moneys to the seller, or the letter of credit must provide for termination, in each case if the Residence is sold by the Mortgagor or the Mortgage Loan is prepaid in full, whether voluntarily or involuntarily; and (g) the Mortgagor's only interest in the escrowed moneys or on moneys drawn under letters of credit is to have them applied to payments due under the Mortgage Note as provided in this Section and such moneys may not be used to pay past due payments of the Mortgagor." 2 APPROVED: (Seal) ATLAS CAPITAL Attest: By Attest By e/ s• CORPORATION By - President REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA, Pursuant to Section 9.01 of the Mortgage Sale and Service Agreement dated as of August 1, 1982 (the "Agreement") among Atlas Capital Corporation, Redevelopment Agency of the City of Azusa, California, and Security Pacific National Bank, Security Pacific National Bank, as trustee under that certain Trust Indenture dated as of August 1, 1982 between Redevelopment Agency of the City of Azusa, California, as issuer of $9,525,000 Single Family Residential Mortgage Revenue Bonds, 1982 Series A, and Security Pacific National Bank, as Trustee, hereby approves the foregoing amendment to the Agreement. (SEAL) ATTEST: .� sistant Secretary SECURITY PACIFIC NATIONAL BANK By: Assistant Vice President -3-