HomeMy WebLinkAbout1990-184
29105-02
JHHW:ACH:zdg 05/11/90
zdg 05/15/90
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RESOLUTION NO. 90- ~84
A RESOLUTION OF THE CITY OF SAN BERNARDINO
AUTHORIZING THE ISSUANCE OF $18,840,000
PRINCIPAL AMOUNT OF SINGLE FAMILY MORTGAGE
REVENUE REFUNDING BONDS (GNMA MORTGAGE-
BACKED SECURITIES) SERIES 1990A, SUCH BONDS TO
BE ISSUED PURSUANT TO A TRUST INDENTURE
DATED AS OF MAY 1, 1990, AUTHORIZING THE SALE OF
BONDS, APPROVING FINAL OFFICIAL STATEMENT
RELATING TO THE BONDS, APPROVING
IMPLEMENTING AGREEMENTS AND DOCUMENTS
RELATING TO THE BONDS AND PROVIDING OTHER
MATTERS PROPERLY RELATING THERETO
SINGLE FAMILY MORTGAGE REVENUE BONDS (GNMA
MORTGAGE- BACKED SECURITIES) SERIES 1990A
WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code
of the State of California (herein called the "Act") authorizes cities and counties to issue
revenue bonds for the purpose of financing home mortgages authorized by the Act, and
the Act provides a complete, additional and alternative method for doing the things
authorized thereby;
WHEREAS, the City has heretofore determined by ordinance to implement a
home mortgage financing program (the "Program") within the City of San Bernardino by
financing home mortgages made to qualified persons and families pursuant to the Act,
and has now determined to borrow money for such purpose by the issuance of revenue
bonds as authorized by the Act;
WHEREAS, the Bonds described in Section 1 below (the "Bonds") are to be issued
in the aggregate principal amount of Eighteen Million Eight Hundred Forty Thousand
Dollars ($18,840,000) for the purpose, among others, of providing moneys to finance
home mortgages by the purchase of an investment to refund certain outstanding bonds of
the City, such outstanding bonds of the City being designated as the City's "Single
Family Residential Mortgage Revenue Bonds, 1980 Series A". The Bonds authorized
under this Resolution are to be issued and secured by a Trust Indenture (the "Trust
Indenture"), and the proceeds of the refunding (by the sale of such investment) are to be
used to purchase from a participating lending institution (the "Lender") certain fully-
modified mortgage-backed securities (the "GNMA Securities) issued by the 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 "Homes") 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 an Origination and Servicing
Agreement (the" Agreement");
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WHEREAS, Miller & Schroeder Financial, Inc., Stifel, Nicolaus & Co., Inc. and
Meridian Capital Markets, Inc. (the "Underwriters") intend to submit an offer to purchase
the Bonds pursuant to a purchase contract between the City and the Underwriters (the
"Purchase Contract") and in connection with the offering of the Bonds, have assisted the
City in the preparation of a final Official Statement describing the Bonds, the "near final"
form of which, for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934,
as amended ("Rule 15c2-12"), is on file with the City Clerk; and
WHEREAS, forms of the Trust Indenture, the Agreement and the other necessary
implementing documents have been presented to and reviewed by the City, with the aid
of its staff, and such documents shall be conformed to the terms and requirements of the
Purchase Contract and the final Official Statement and are thereupon approved for
execution in final form;
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED, as
follows:
1. The City of San Bernardino, California Single Family Mortgage Revenue
Refunding Bonds (GNMA Mortgage-Backed Securities), Series 1990A, in the principal
amount of $18,840,000 are hereby authorized to be issued pursuant to a Trust Indenture
dated as of May I, 1990, in form substantially as submitted at this meeting, which Trust
Indenture shall be conformed in final form to the provisions of the Purchase Contract and
the final Official Statement and the Mayor or his written designee, is authorized and
directed to execute the Trust Indenture for and on behalf of the City and the City Clerk is
authorized and directed to attest his signature thereto;
2. The Mayor and Common Council hereby approve the sale of the Bonds by
negotiation with the Underwriters, pursuant to the Purchase Contract by and among the
City and the Underwriters, in substantially the form on file with the City Clerk, together
with any changes therein or additions thereto approved by the City Administrator or an
authorized representative of the City Administrator, upon consultation with bond
counsel, whose execution thereof shall be conclusive evidence of approval of any such
additions and changes. The Purchase Contract shall be executed in the name and on
behalf of the City by the City Administrator, who is hereby authorized and directed to
execute and deliver said form of Purchase Contract on behalf of the City; provided that
the purchase price to be received by the City for the Bonds shall be not less than
percent <-%) of the par amount thereof, exclusive of original
issue discount, and the average annual stated interest rate to be borne by the Bonds
shall not exceed percent (_%) per annum.
3. The Mayor and Common Council hereby approve the "near final" Official
Statement describing the Bonds, in substantially the form submitted to the Underwriters
heretofore and on file with the City Clerk. The City Administrator is authorized and
directed, on behalf of the Issuer, to deem the near final Official Statement "final"
pursuant to Rule 15c2-12. The execution of the final Official Statement, which shall
include such changes and additions thereto deemed advisable by the City Administrator,
upon consultation with bond counsel, and such information permitted to be excluded from
the near final Official Statement pursuant to Rule 15c2-12, is hereby approved for
delivery to the purchasers of the Bonds, and the City Administrator is authorized and
directed to execute the final Official Statement for and on behalf of the City and to
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deliver to the Purchaser a "10b-5" certificate with respect to the information set forth
therein.
4. All actions heretofore taken by the officers and agents of the City with respect
to the establishment of the Program, including the criteria established for lenders
participating in the Program as set forth in the mailed notice therefor, and in the
issuance, sale and delivery of the Bonds, are hereby approved, confirmed and ratified,
and the Mayor, the City Administrator, the City Attorney and the City Clerk 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 and
execute and deliver any and all documents, certificates, requisitions, agreements and
other documents described in the Trust Indenture and the final Official Statement,
including, without limitation, the Origination and Servicing Agreement dated as of May
1, 1990 between the Lender, the Trustee with respect to the Bonds, and the City, and the
Investment Agreement for investment of various funds to be held under the Trust
Indenture.
5. The City Administrator, or his designee, is hereby authorized and directed to
ailminil,ter the Program within the City, and such such City Administrator, or his
designee, is hereby authorized to act on behalf of the City in such capacity. Any designee
pursuant to this or any other Section of this Resolution shall be designated in writing
signed by the person making such designation.
6. This resolution shall take effect from and after its adoption.
* * * * * * *
ADOPTED and APPROVED this.z&i day of May, 1990
AYES: Council Members Reilly, Flores, Maudsley, Minor,
Pope-Ludlam, Miller
NOES: None
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AUBSENT: Council Member Estrada
ATTEST:
Jff'daY!V iYC:Uh7 /tb~ ~
City Clerk /; ~
Approved as to fonn and legal content:
James F. Penman
City Attorney
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