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HomeMy WebLinkAboutResolution No. 2240 0 11024-2 JHHW:PNL:cb 12/3/85 L2858 RESOLUTION NO. 224 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DETERMINING TO AUTHORIZE THE ISSUANCE OF $16,800,000 PRINCIPAL AMOUNT OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS THE (GNMA MORTGAGE-BACKED SECURITIES PROGRAM) SERIES 1985 A. SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS OF DECEMBER 1, 1985, AUTHORIZING THE SALE OF SUCH BONDS, SUBJECT TO CERTAIN TERMS AND CONDITIONS, APPROVING DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH BONDS, DIRECTING SUBMISSION OF FINAL IMPLEMENTING AGREEMENTS AND DOCUMENTS AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS (THE GNMA MORTGAGE-BACKED SECURITIES PROGRAM) SERIES 1985 A WHEREAS, Chapter 8 (commencing with Section 33750) of Part 1 of Division 24 of the Health and Safety Code of the State of California (herein called the "Act") authorizes redevelopment agencies to issue revenue bonds for the purpose of financing residential construction within redevelopment project areas; WHEREAS, for the purposes of financing residential construction within the Azusa Central Business District Redevelopment Project Area of the Agency, the Agency has developed a program (the "Residential Mortgage Financing Program" or the "Program") with respect to (i) the issuance by the Agency of its Single Family Residential Mortgage Revenue Bonds (GNMA Mortgage -Backed Securities Program) Series 1985 A (the "Bonds"), to be issued and secured by a Trust Indenture (the "Indenture"), and (ii) the use of the Bond proceeds by the Agency to purchase without recourse from the lending institution (the "Lender") certain fully -modified mortgage-backed securities (the "GNMA Securities) issued by a Lender with respect to home mortgages (the "Home Mortgages") made to finance single-family dwelling units intended for use as the permanent place of residence by qualified persons (the "Residences") and guaranteed as to timely payment of principal and interest by the Government National Mortgage Association ("GNMA"), which Home Mortgages are to be originated and serviced by the Lender pursuant to the Origination, Servicing and Administration Agreement (the "Agreement"); WHEREAS, further to that end, the Agency and the developers of the Residences will enter into the developer agreements (the "Developer Agreements"), for the purpose of setting forth, among other things, the terms and conditions pursuant to which the developer will deliver Home Mortgages to the Lender for origination and the Lender will deliver GNMA Securities to the trustee for purchase under the Indenture on behalf of the Agency and the Agency will reserve proceeds of the Bonds to provide funds for such purpose; WHEREAS, Miller & Schroeder Financial, Inc. (the "Purchaser") as underwriter to the Agency has caused a Preliminary Official Statement, dated November 26, 1985, relating to the Bonds, to be submitted to the Agency for approval for distribution to prospective purchasers of the Bonds; WHEREAS, the Purchaser has submitted and intends to execute an agreement for the purchase of the Bonds (the "Bond Purchase Agreement") and it is desirable that the Bonds be sold at this time only, however, on the terms and conditions hereinafter provided and in accordance with the provisions of the form for the Bond Purchase Agreement submitted; WHEREAS, preliminary forms of the Trust Indenture, the Agreement, the Developer Agreements and the other necessary implementing documents have been presented to and reviewed by the Agency, with the aid of its staff, and such documents shall be conformed to the terms and requirements of the Purchase Agreement and be submitted to the Agency for approval for execution in final form; NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED, as follows: 1. The Redevelopment Agency of the City of Azusa Residential Mortgage Revenue Bonds (GNMA Mortgage -Backed Securities Program), Series 1985 A in a principal amount of $16,800,000 are hereby determined to be authorized to be issued pursuant to a Trust Indenture dated as December 1, 1985, in form substantially as submitted at this meeting, which Trust Indenture shall be prepared in final form to conform with the provisions of the Bond Purchase Agreement and shall be submitted to the Agency for final approval prior to the delivery of the Bonds to the Purchaser. 2. The Preliminary Official Statement relating to the Bonds, setting forth such amendments and supplements as shall be necessary or convenient to accurately describe the Bonds in accordance with this Resolution, the Trust Indenture, the Bond Purchase Agreement, the Agreement and the other related agreements and documents, is hereby approved for distribution to such broker- dealers, banking institution and other persons as may be interested in purchasing the Bonds. 3. The Bond Purchase Agreement for purchase of $16,800,000 principal amount of the Bonds, in the form submitted to the Agency at this meeting is hereby approved and the Executive Director of the Agency is authorized and directed to execute the Bond Purchase Agreement on behalf of the Agency, provided that all of the following conditions are met. (a) The purchase price of the Bonds shall be not less than 97.5% of the principal amount of the Bonds; (b) The Bond interest rate for any maturity shall not exceed 12%; and (c) The Home Mortgage interest rate shall not exceed 10.00%. Provided that the Underwriter may make provisions for adjustment of maturing amounts of principal of the Bonds and the maturity dates as set forth in the Preliminary Official Statement thereof in a manner which does not 6'a increase the 10% annual Home Mortgage interest rate limitation above set forth. The Executive Director shall insert and initial the final Bond interest rates and the final purchase price in the space provided in the Bond Purchase Agreement. 4. The Developer Agreements with the developers proposing to participate in the Agency's Program and the Agreement to be entered into by the City with the Lender proposing to participate in the Agency's Program in form substantially as submitted at this meeting shall be prepared in final form to conform with the provisions of the Bond Purchase Agreement and shall be submitted to the Agency for final approval prior to the delivery of the Bonds to the Purchaser. 5. This resolution shall take effect from and after its adoption. ADOPTED and APPROVED this 2 nd day of December, 1985 AYES: Members: CRUZ, COOK, CAMARENA, LATTA, MOSES NOES: Members: NONE ABSENT: Members NONE —� — Chairman� MIN I hereby certify that this is a true and accurate copy of a document on file in the office of the Secretary to the Azusa Redevelopment Agency. DEPUTY ecr tary M