HomeMy WebLinkAbout1995-060
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RESOLUTION NO. 95-60
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING
AMENDMENT NO. 1 TO ESCROW TRUST AGREEMENT IN CONNECTION
WITH THE $18,840,000 CITY OF SAN BERNARDINO,
CALIFORNIA, SINGLE FAMILY MORTGAGE REVENUE REFUNDING
BONDS (GNMA MORTGAGE-BACKED SECURITIES) SERIES 1990A
WHEREAS, the city of San Bernardino, California (the
"City") is a municipal corporation and charter city organized and
existing under the laws of the State of California; and
WHEREAS, in 1990, the city issued its $18,840,000 city
of San Bernardino, California, Single Family Mortgage Revenue
Refunding Bonds (GNMA Mortgage-Backed Securities) Series 1990A
(the "Bonds") to provide for the refunding of certain outstanding
bonds in order to make certain funds available for a home
mortgage financing program (the "Program"); and
WHEREAS, there were no home mortgages initiated under
the Program, and therefore, pursuant to that certain defeasance
Escrow Trust Agreement (the "Escrow Agreement") by and between
the City and Bank of America National Trust and Savings
Association as successor to Security Pacific National Bank
(the "Escrow Trustee"), the Bond proceeds were placed in escrow
in order to provide for the payment of the Bonds at their
respective maturity dates; and
WHEREAS, eighty-one percent (81%) of the Bondholders
have requested clarification of the terms of the Escrow Agreement
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because, although implied, there is no specific language in the
Escrow Agreement which states (i) that the Bonds are not subject
to optional redemption, and (iil that they will be paid at
maturity or on the date they are subject to sinking fund
redemption; and
WHEREAS, the requested modification involves a
clarification rather than a material alteration of the terms of
the Escrow Agreement, and thus Bondholder consent is not
required.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The recitals contained hereinabove are
true and correct and incorporated herein by this reference.
SECTION 2. The City hereby authorizes the Amendment
No. 1 to Escrow Trust Agreement in the form attached hereto as
Exhibit "A".
SECTION 3. The Mayor, City Administrator, City
Attorney, Bond Counsel to the City, City Clerk, Treasurer and any
and all other officers of the City are hereby authorized and
directed, for and in the name and on behalf of the City, to do
any and all things and take any and all actions, including
execution and delivery of any and all assignments, certificates,
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1 requisitions, agreements, notices, consents and other documents,
2 which they, or any of them, may deem necessary or advisable in
3 order to consummate the execution and delivery of the Amendment
4 No. 1 To Escrow Trust Agreement.
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A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING AMENDMENT NO. 1 TO ESCROW
TRUST AGREEMENT IN CONNECTION WITH THE $18,840,000 CITY OF SAN
BERNARDINO, CALIFORNIA, SINGLE FAMILY MORTGAGE REVENUE REFUNDING
BONDS (GNMA MORTGAGE-BACKED SECURITIES) SERIES 1990A
SECTION 4.
The findings and determinations herein
shall be final and conclusive. This Resolution shall take effect
upon the date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Mayor and Common Council of the City of
regular
meeting
San Bernardino at a
20th
March
day of
thereof, held on the
1995, by the following vote, to wit:
13 Council Members:
ABSENT
ABSTAIN
NAYS
AYES
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NEGRETE
CURLIN
HERNANDEZ
OBERHELMAN
DEVLIN
POPE-LUDLAM
MILLER
x
x
x
x
x
x
x
~~
The foregoing
day of March
resolution is hereby approved
1995. m.
....----r- )4/ \
Lr~, '0-~
Mayor of the City of
San Bernardino
this
~). ~,{
Approved as to form and legal content:
JAMES F. PENMAN
city Attorney
BY:~/
./'
RODM\0002\7
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15 (,,0
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EXHIBIT -A-
..
AMENDMENT NO. 1 TO ESCROW TRUST AGREEMENT
This Amendment (the "Amendment") is dated as of
)l-1aittL d.J- , 1995 and made by and between the city of San
Bernardino, California (the "City"), a municipal corporation duly
organized and existing under and by virtue of the laws of the State
of California and Bank of America National Trust and savings
Association as successor Escrow Trustee to Security Pacific
National Bank (the "Escrow Trustee") as follows (all terms not
otherwise defined herein shall have the meanings given in the
Escrow Agreement as defined below):
WITNESSETH:
WHEREAS, the parties hereto entered into that certain
Escrow Trust Agreement (the "Escrow Agreement") dated as of
March 1, 1992 for the purpose of providing for the payment of the
$18,840,000 City of San Bernardino, California, Single Family
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed Securities)
Series 1990A (the "Bonds"); and
WHEREAS, it has been brought to the attention of the City
and the Escrow Trustee by the Bondholders that Section 5 of the
Escrow Agreement does not specifically provide that the Bonds are
not subject to optional redemption and will be paid at maturity or
sinking fund redemption; and
WHEREAS, it was the intention of the City and the Escrow
Trustee that the Bonds be paid only at maturity or sinking fund
redemption as shown on Schedule C of the Escrow Agreement; and
WHEREAS, although the payment dates indicated on
Schedule C do not include any optional call dates, the parties
hereto deem it desirable to clarify Section 5 to specifically state
that the Bonds are not subject to optional redemption and are
defeased to their respective maturities or sinking fund payment
dates; and
WHEREAS, section 12 of the Escrow Agreement provides for
amendments of this kind without the consent of the registered
owners of the Bonds.
the mutual
the above,
themselves
NOW, THEREFORE, in consideration of the foregoing and of
covenants herein contained, and in order to accomplish
the parties hereto hereby covenant, agree and bind
as follows.
Section 1. The Escrow Agreement shall be amended to
add after the first paragraph of section 5 and before the second
paragraph of section 5 the following:
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"The principal on the Bonds shall only be paid
at maturity or upon sinking fund redemption as
provided in Schedule C. The Bonds shall not
be subject to optional redemption."
Section 2. The Escrow Agreement is hereby restated
and all terms and provisions herein shall form part of the Escrow
Agreement as fully and with the same effect as if all such terms
had been set forth therein. The Escrow Agreement remains in full
force as supplemented hereby.
section 3. This Amendment shall take effect as of the
date first written above.
Dated: /Yh"civ J ;;,111C;-
CITY OF SAN BERNARDINO
BY~l j1~;.~
ayor ,1/
Attest:
By: ~~.~
. City Clerk
Dated: 1M~HlJ), ICliS
BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION AS
SUCCESSOR BY MERGER TO SECURITY
PACIFIC NATIONAL BANK AS ESCROW
TRUSTEE
By:
Author zed Representative
RODMlOOO2/6
3/9/95 230 law
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