HomeMy WebLinkAbout1980-136 RESOLUTION NO. S AND REGULATIONS
RESOLUTION OF THE CITY OF SAN BERNARDINO ADOPTING FINANCING RESIDENTIAL
FOR THE PURPOSE OF MAKING MORTGAGE LOANS
CONSTRUCTION
Is a municipal corporation duly created,established
business and exercise its powers, all under and pursuant to the Constitution and
WHEREAS,the City c San Bernardino(the"City") owers of the City include the
and authorized to transact bus
laws of the State of California, and corporate Cpurposesf and City, and the p
power to issue bonds for any of It
WHEREAS, pursuant to Ordinance No. 3853 the City may
issue Revenue Bonds for the purpose of
Financing Residential Construction as authorized by said Ordinance; and
issuance of Revenue Bonds for the purpose of Financing
the Ordinance, it is necessary that the City adopt rules and
WHEREAS, in connection with its proposed
Residential Construction authorized ce
regulations, pur
suant to said Ordinance, for all Residential Construction to be undertaken or completed
pursuant thereto.
NOW, THEREFORE,
BE IT RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO As FOLLOWS'
d Re ulations of the City relating to its Program of Financing Residential
SECTION 1. The Rules an g
Construction attached hereto are hereby adopted.
SECTION 2. This Resolution shall take effect upon adoption.
ADOPTED AND APPROVE the�,�i.`.'day of """�'"
May o, of the ity of San rnardino
�
[SEALI
ATTEST:
r '
City Clerk of the City of San Bernardino 12/28/79
,.Morn,: � � �
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tt
-TTY ATTORNEY
STATE OF CALIFORNIA
CITY CLERK'S CERTIFICATE
COUNTY OF SAN BERNARDINO Ss. RE ADOPTION OF RESOLUTION
CITY OF SAN BERNARDINO
of said City held on the
�lgx.K, City Clerk of the City of San Bernard
1�r O HEREBY CERTIFY that the
1, y p said City at a
foregoing Resolution was duly adopted by assed and adopted by the following vote, to wit:
7. day of ...API-. ... 19d� and that the same was passed
f/
AYES:
Members:
NOES:
M&embers: XYG��z�
ABSENT:
Members:
ABSTAIN.
City Clerk of the City of San Bernardino
[SEAL]
STATE OF CALIFORNIA
CITY CLERK'S CERTIFICATE
COUNTY OF SAN BERNARDINO Ss. OF AUTHENTICATION
CITY OF SAN BERNARDINO above
S`'L�ai�i, /uf�t, City Clerk of the City of San BernalloDf said City and CERTIFY
haTsaid Resolution
I> ••• of Resolution
and foregoing is a full,true and correct copy
adopted at the time and by the vote stated on the above certificate, and has not been amended or repealed.
City Clerk of the City of San Bernardino
[SEAL] 12/28/79
60,005-39-1
RULES AND REGULATIONS
OF THE CITY OF SAN BERNARDINO
RELATING TO ITS RESIDENTIAL FINANCING PROGRAM
ARTICLE I
GENERAL PROVISIONS
SECTION 1.01 Scope. published pursuant to Ordinance No. 3853 of the City of
thereof by the City of San
These Rules and Regulations are made and p fished in accordance with said
San Bernardino, and relate to Residential Construction isnto the
accomplished limitation, the providing of
Bernardino pursuant to said Ordinance. Such purpose
Ordinance and other applicable State and Federalu 1 fled Mortgages Lender
to Participating Parties to
long-term low-interest loans at rates through Q
Finance Residential Construction in the City of San Bernardino.
SECTION 1.02 Definitions. when used in these Rules dRegulations
as are ascribed to them in the Ordinance
The terms defined in the Ordinance have the same meaning
e unless the context otherwise requires:
and meanings,the eneral Resolution and shall, for the purposes to
Rules and Regulations have the following o of the City of San Bernardino, a public body, corpora
'Agency" means the Redevelopment Agency
and politic, of the State of California.
"Bond or Bonds" means any
Bond or Bonds (including any note or notes, as the case may be) oft e
City authorized under a Resolution orResolutions of the City.
"City" means the City of San r
"Construction Standards"means the applicable standards for Residential Construction adopted by the
City as part of its Program.
made in order to obtain or maintain Mortgage Loa gaand fire,'Escrow Payments" means all payment roviding Mortgage Mortgage Loans for
including payments for any federal program intended to assist in p
and other Hazard Insurance and any payments required to be made with respect to ly re
taxes or other governmental charges or other similar charges to a Mortgagor customarily required to be
escrowed. enc or instrumentality created or
"FHA" means the Federal Housing
Administration or other ag y using Administration have been
chartered by the United States to which the powers of the Federal Ho
transferred. other agency or instrumental-
to which the powers of the Federal Home Loan Mortgage Corporation have been
"FHLMC"means the Federal Home Loan Mortgage Corporation or an
ity of the United States
transferred. g ur ose of facilitating
means the lending of moneys or any other thing the f value for thecons
Residential Construction pursuant to the tpruction loans and
"Financing" Ordinance, including
Mortgage Loans to purchasers of newly constructed Residences.
means the Federal National Mortgage Association or other corporation chartered by the
"FNMA" m sowers have been transferred.
United States to which such p erso. qualified to issue such insurance in this State,
"Hazard Insurance"means insurance issued by a p perils as: fire,extended
which insurance sh
all be California standard form of fire insurance loss resulting from such pall be Carrie
by the Mortgagor on Residences to insure such Residence from
ed under extended coverage endorsements in an
clone, tornado, hail, explosion, riot, civil commotion, malicious mischief,vandalism, aircraft,
windstorm, cy cove
fire and smoke damage and any other perils commonly 12/28/79
1
60,005-39-1
amount at least equal to eighty percent (80%) of the insurable value based upon replacement cost of such
Residences, but with deduction being made for depreciation.
"HUD"means the Department of HousinWhichithe powers of thnDepartmengofcHousingrand Urban
created or chartered by the United States t o
Development have been transferred. and Guidelines"means all handbooks, g uides, rules,manuals or other
"Instructions, Rules of Practice
materials, if any, of whatever nature adopted by the City with respect to the Program.
"Mortgage" means a deed of trust or other lthsarume in the
either the
property and improvements thereon, together promissory
Trustee, the City or a Qualified Mortgage Lender,e where e. the debt is secured by real property located as
required in the Ordinance and improved by a
"Mortgage Insurance" means insurance or a guaranty issued by any instrumentality of the United
States or the State or by any person licensed to insure Mortgage Loans in the State, insuring or
i respectively, in whole or in part, principal and interest payments on Mortgage Loans.
guaranteeing, y person licensed to insure Mortgage
"Mortgage Insurer"means any Federal Agency or the State,or an p
Loans in the State and approved by the City, insuring or guaranteeing, respectively, in whole or in part,
principal and interest payments on Mortgage Loans.
"Mortgage Loan"means an interest-bearing obligation made for pu o of nc Residential
Construction and secured by a Mortgage, the p ay o n Mortgage Insurance.
"Mortgage Loan-Purchase Agreements"
greementsto originate and/or between the
Loans.Qualified Mort-
gage Lenders relating to the commitments $
"Mortgage Servicing Agreements" mean all contractual agreements by and between the City and
Servicers for the servicing of Mortgage Loans by such Servicers.
who qualifies as a Participating Party under
"Mortgagor" means the obligor under a Mortgage Loan
the Ordinance.
"Ordinance" or "Ordinance No. 385 means Ordino on August 820,1979,relating to the financing of
Mayor and Common Council of the City o E San
adequate housing for the residents of the City.
"Participating Party" means any person, corporation, partnership, firm, or other entity or group of entities requiring Financing for Residential Construction pu les and Regulations.No electiveeroffiicercof the
the Program,and who qualifies under Section 2.04 of these ee of the City shall be eligible to be a
State, the City or any political subdivision of the State or employ
Participating Party. City to rovide"Program"means the undertaking weth moneys provided by the lissuance of Bonds purs ant to the
to the Ordinance, to be carried out in part
General Resolution. authorized,by the
usiness with the
"Qualified Mortgage Lender"means mortgage n behalf of the City,, foCwhich service the Qualified
City and to aid in Financing pursuant to the Ordinance alified
Mortgage Lender will be reasonably hartered savings and loan ationrtorgtrust or mort a e ncompany be a stag gr
national bank, Federal or State on
banker which is capable of providing service iction ofhhe City.1As provided Fn thelOrdinance,tnothinginsany
Residential Construction within the Qualified Mortgage Lender
other provision of State law shall prevent such a lender from serving as a
pursuant to the Ordinance. which are
"Residence" means real property Codes, and also includes real property improved hwithla commercial
habitable by human beings under Local
structure,or a mixed residential and commercial structure which,the City determines to be an Integra part
12/28/79
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60,005-39-1
of a residential neighborhood. Residence includes, without limitation, condominium and cooperative dwell-
ing units, single-family residences and/or multiple-family residences and also includes mobile homes if used
on other than a transient basis by one or more persons, but only to the extent that such facilities are exempt
facilities under Section 103 of the Internal Revenue Code of 1954, as amended.
"Residential Construction" means the construction of new Residences meeting the requirements of
Local Codes.
"Resolution or General Resolution"means that Resolution pursuant to which the City authorizes the
issuance of Bonds or notes for the purpose of making or purchasing Mortgage Loans to Finance Residential
Construction, duly adopted by the City, as from time to time amended or supplemented by Supplemental
Resolutions in accordance with the terms and provisions of the Resolution.
"Rules and Regulations" means these Rules and Regulations as now or hereafter adopted and
amended pursuant to the Ordinance.
"Servicer" means any Qualified Mortgage Lender who shall, by executing a Mortgage Servicing
Agreement with the City, agree to service Mortgage Loans.
"Trustee"means the bank or trust company or national banking association appointed pursuant to the
Resolution to act as Trustee and any other bank or trust company or national banking association at any
time substituted in its place pursuant to the Resolution or any Supplemental Resolution.
"VA"means the Veteran's Administration or other agency or instrumentality created or chartered by
the United States to which the powers of the Veteran's Administration have been transferred.
SECTION 1.03 Rules.
The taking of internal actions as may be necessary and desirable for the implementation and
administration of all aspects of the Program may be established and modified from time to time by the City,
at all times consistent with the provisions of the Ordinance,the Resolution and these Rules and Regulations.
SECTION 1.04 Inter-Agency Cooperation.
Whenever possible and appropriate, the City will cooperate with Federal, State and local agencies to
utilize all existing and available resources to promote the production and increased availability of low-
interest loans to Finance Residential Construction where authorized by law.
SECTION 1.05 Purchase and Origination of Loans.
The City, through the Trustee, may purchase Mortgage Loans made to Participating Parties by
Qualified Mortgage Lenders without premium and may, through Qualified Mortgage Lenders, originate
Mortgage Loans,if the loans are of the character and on the terms established by the City for the Program.
SECTION 1.06 Holding, Pledge and Assignment.
The City,through the Trustee, may hold Mortgages as security for Financing Residential Construction
and may pledge or assign the same as security for repayment of notes and/or Bonds issued pursuant to the
Resolution. Such Mortgages may be assigned to, and held on behalf of the City by, the Trustee.
SECTION 1.07 Incorporation of Rules and Regulations.
The City's action in making or purchasing a Mortgage Loan shall have the effect of adopting as the
City's Rules and Regulations, as to the Residential Construction financed by such Mortgage Loan, or as to
any Mortgage Loan made or purchased by the City, the rules and regulations provided by the Qualified
Mortgage Lender and/or the Mortgage Insurer who are assisting, aiding or guaranteeing the Mortgage
Loan or Loans as aforesaid, to the extent not inconsistent with the provisions of the Ordinance and the
General Resolution,which inconsistencies,if any,shall be remedied by suitable additions to these Rules and
Regulations prior to the processing of the Mortgage Loan or Loans involved.
60,005-39-1
3 - 12/28/79
SECTION 1.08 Forms. g applications for Mortgage Loans, for the
Forms to be employed for the making and processin of a p
purchase of Mortgage Loans and for the administration l in ant particular d Mortgage Loans,hsubject the
Qualified Mortgage Lender and/or Mortgage
suitable modifications to be consistent with e the Ordinance and form, neral bee attached t to here Rules and
with any instructions as to the use thereof,
Regulations as exhibits. urchasing of Mortgage Loans shall
Forms of documents to be employed with respect to the making or p
be those of the Qualified Mortgage Lender and/or Mortgaghe Ordinance land the GeneraI Mortgage
Loans, subject to suitable modifications to b e
which forms together with any instructions as to the use thereof, when in final form, shall be attache to
these Rules and Regulations as additions.
SECTION 1.09 Submission and Approval of Details. out
royal
The detailed rules and regulations, forms al fied Mortgage Lender to the City tand the City's eapp u a
and Regulations shall be submitted by the Qualified
given,to the extent feasible at that time, prior to the issuance of the Bonds issued to Finance the rulesnan
Construction involved; provided, however, this shall ot prevent e previously adoption of other detailed rules and
regulations, forms and documents or the modification
ARTICLE 11
RESIDENTIAL CONSTRUCTION PROGRAM
SECTION 2.01 General.
These Rules and Regulations prescribe t general d Mortgage andlforlorigonating and
purchas-
ing and for contracting to purchase Mortgages Qualified
making Mortgage Loans under the Program.
SECTION 2.02 Objective.
The basic objective of the City innsmuctionnn the Cityron order to en ourage investment and pg ade
interest loans to Finance Residential Co
areas within the City. Unless the City intervenes man generate
areas of herCity will funds
tagnate and deteriorate orate be ause
assistance to Finance Residential Construction, y private sources.
property owners and investors are not able to obtain loans from p
SECTION 2.03 Qualified Mortgage Lenders — Eligibility. Mortgage Lender and only to the
No loan shall be made for Mortgage Insurer.ure Financing except
t through
its own initiative or upon request,shall distribute to
extent it is insured e a Lenders
Qualified Mortgage Lenders informatio u qualifications to c as Qualified Mortgage Lenders and Servacers
sufficient for the City to determine their q
under the Program.
SECTION 2.04 Mortgagors — Eligibility.
Loan under the Program must meet all of the following
Mortgagors applying for a Mortgage
requirements:
incur tcientto obtainoMohtgagerInsuranceLoan;
(1) Possess the legal capacity to
(2) Have a general credit standing suffi
(3) Be able in the opinion of the Qualified Mortgage Lender to pay all obligations as 1 ed become
due, including the principal, interest and Escrow Payments on the Mortgage Loan applied
4
60,005-39-1
(4) Agree to comply with requirements established by the City and with the terms of the Mortgage
Loan; and olitical subdivision of
(5) Not be an elective officer of the State of California, the City nor of any p
the State, nor an employee of the Agency.
SECTION 2.05 Properties — Eligibility.
In order to be subject to a Mortgage made to secure a loan under the Program,a Residence must meet
the following requirements:
(1) Be located within the territorial jurisdiction of the City;
(2) Architectural and engineering design must meet Construction Standards and the work of
Residential Construction must be subject to City supervision;
(3) Be open, upon sale or rental of any portion thereof, to all regardless of race, color, creed,
religion, sex, marital status, national origin, or ancestry; and at the(4) Be real property on which a Residence er o is
st located
be adequate secure time
Mortgageo Inu rance.e
Mortgagor in fee simple or under leasehold
SECTION 2.06 Contractors and Contracts. opportunity
All contractors and subcontractors engaged to race, color,creledCreligion tsexsmarital statusgnat
national origin,
for employment,without discrimination
or ancestry. All contracts and subcontracts for Residential sexn marrtaldstatusT tnatOnal origin,be let without discrimination as to race, color, ,
ancestry. It is the policy of the City to encourage participation by minority contractors.
All publicity authorized or undertaken by tontract rs,
particularly,`in common with all contractors.
provisions encouraging participation by minority c
SECTION 2.07 Loan Purposes.
A loan may be made through any Qualified Mortgage Lender to any Participating Party fort e
purpose of Financing Residential Construction under the Program.
SECTION 2.08 Mortgages.
ed by the City as aforesaid. Each Mortgage shall
(A)The Mortgages shall be executed on forms approv
be a lien on real property, be consistent with State law, and conform with the standards prescribed by the
City and the applicable Mortgage Insurer.
(B) The approved Mortgage shall include provisions necessary to protect the interests of the City, such
provisions being stipulated from time to time by the City.Cit the maximum loan as a percentage of the
(C) With respect to Mortgage Loans financed by Y, licable re ulations and
property's appraised value or sales price shall be determined according to the app g and
the
procedures of the Mortgage Insurer, and within the
is limitations
be financed u der the P ograme m ut qualify under
Program.All Residences,the construction of which
the requirements of the Ordinance.
Lender shall determine and approve the amount of each Mortgage Loan
(D) The Qualified Mortgage e Loan
and monthly payments, the
on a case-by-case basis and shall convey such approval escoribed down payment The of each Mortgage
shall be based on the applicants ability to make any p
applicant's ability to secure Mortgage Insurance and the value and condition of the Residence.
SECTION 2.09 Mortgagor's Minimum Investment.
With respect to Mortgage Loans financed by the City, Mortgagor's minimum investment shall be
determined according to the applicable regulations and procedures of the Mortgage Insurer.
Is/2s/79
5
60,005-39-I
SECTION 2.10 Mortgage Loan Terms.
(A) The fees, charges and interest rates to be used by Qualified Mortgage Lenders for Financing
Residential Construction shall be established he Citydefaults,nd chased nges t
in loan-servicing changes
ng chargesor other
interest rates on Bonds of the City, losses due t In expenses related to administration of the Program.1916 5 of dthecCivil Code which hg interest
which prov desasnollows
rate shall conform to the provisions of
"(a)No increase in interest provided issued any
n provision
onnecotioo therewith, interest
unlessdsuch
security document, or evidence of debt
provision is set forth in such security document, and in any evidence of debt issued in connection
therewith, and such document or documents contain the following provisions:
"(1) A requirement that when an increase in the interest rate is required or permitted by a
movement in a particular direction of a prescribed standard an identical decrease is required in the
interest rate by a movement in the opposite direction of the prescribed standard.
"(2) The rate of interest shall change eot any two such chnce during any semiannual period,
and at least six months shall elapse percent in any
"(3) The change in the interest rate shall not exceed one-fourth of 1 p
semiannual period, and shall not result in the to more
closing than the 5 percentage points greater than the
rate for the first loan payment due after
"(4) The rate of interest shall not change during the first semiannual period.
"(5) The borrower is permitted notification oof prepay
increaso in the�laterof interest.without a prepayment
charge within 90 days of no
"(6) A statement attached to in a security
ize equailto at least lOnpomt bold type, consisting of
connection therewith printed or written
the following language:
"NOTICE TO BORROWER:
THIS DOCUMENT CONTAINS PROVISIONS
FOR A VARIABLE INTEREST RATE.
"(b) The provisions of this section or negotiable 1pnstrument issued mortgage when its
real estate sales contract,or any no
purpose is to finance the purchase or construction of real property containing four or fewer residential
units or on which four or fewer residential units are to be constructed.
"(c) Regulations setting forth
Savings d Loan Commissioner w thr
y and to savings and loan
shall be based may be adopted y
associations, the Superintendent of Banks with respect to banks, and the Insurance Commissioner with
respect to insurers.
"(d) As used in this section:
(1) "Bank" includes, but is not limited to, a national banking association.
d to, a federal savings and loan
(2) "Savings and loan association" includes, but is not limite
association, as defined by Section 11000 of the Financial Code.
(3) "Insurer" includes, but is not limited to, a nonadmitted insurance company.
(4) "Semiannual period" mea thee c endarhmonth successive
wh h periods the instrument calendar creating nthe
commencing with the first day of
obligation is dated.
e contract, deed of trust, or real estate sales
(5) "Security document" means a mortgag
contract.
6 12/28/79
6o,005-39-1
(6) "Evidence of debt" means a note or negotiable instrument.
"(e) Notwithstanding the provisions of subdivision increase of Section
e t7rate of subdivision loan subject to
Section 7150 of the Financial Code, when of the
f Section 1
this section which is made by a commercial bank pursuant to subdivision (b) o 227 of the
Financial Code, or by a savings and loan association pursuant to subdivision (a) of Section 227
Financial Code, the term of such loan may be
loan without pnc°reaso increasing existing for
onthly
additional period as may be required to
payment, but not to exceed a maximum term of 40 years.
"(f) The provisions of this section shall be applicable only to instruments executed on and after the
effective date of this section.
"(g) This section shall not apply to nonprofit public corporations."
In accordance with the Ordinance:
1. Paragraph (3)
of subdivision (a) of said Section 1916.5 shall not apply, and
2. The "prescribed standard" specified in said Sec i parties n 1916.5 shall
and shall beflecticohanges oeinterestdrateston
City after hearings preceded by public notice to a
the City's Bonds, and bona fide changes in loan servicing charges related to the administration of a Program
under the provisions of the Ordinance.
(B) Each Mortgage Loan will be scheduled for final repayment within the life of the Bonds whose
proceeds were used to make or purchase the Mortgage Loan.ill
(C) The Mortgage Loan shall provide that payments wcondemonth following the date of settlement
Payments to principal shall commence on the first day of the se
of the Mortgage Loan.
(D) The Mortgage Loan shall provide that the owner
be of the Residence
by the buyer.lA Assumption on of Mortgage
obligations of the owner under the Mortgage L Y
Loans and adjustments of interest rates upon assumption age uranall program i.tted ed the City
to the extent
allowed by State and Federal law and g
(E) The Mortgage Loan shall comply in all eespes with the requirements and limitations of the
Ordinance these Rules and Regulations and t Program.
(F) All monthly payments to be made by the Mortgagor to the Servicer shall be added together and the
entire aggregate amount thereof shall be paid h the Morg gor en hhe orders set forthe payment. The
Servicer shall apply the aggregate payment to
(a)Taxes, special assessments, and Hazard Insurance premiums (to be held in an escrow payment
account by the Servicer);
(b) Mortgage Insurance fees;
(c) Interest on the Mortgage; and
(d) Amortization of the principal of the Mortgage. good b the
Any deficiency in the amount of any aggregate monthly payment shall, unless made g Y
Mortgagor prior to, or on, the due date of the next aggregate payment, constitutes a default under the
Mortgage. the borrwer shall ay
(G) In addition to the payment of principal Insurance,premiumoand any otherat ms thefCity deems
rata share of the annual real estate taxes, Hazard
appropriate on the day of the month specified on the Mortgage.
(H) The City may establish a prepayment penalty, if permitted by law, which it deems satisfactory to
protect the City's contractual arrangements with the purchasers and holders of its Bonds.
P 12/ZS/79
7
60,005-39-1
(I) Each Mortgage shall provide that the Mortgagor will furnish and continually maintain and pay for
Hazard Insurance on the Residence. Such insurance shall be written by such companies, in such amounts
and on such terms and conditions and shall be satisfactory to the City and the Mortgage Insurer, and must
be maintained until the Mortgage Loan is repaid. Pro rata payments to keep such Hazard Insurance in force
will be paid into an escrow payment account.
(J) Each Mortgage shall provide for the collection of late charges not to exceed the maximum amount
permitted by law.
interests of the City may be included as the City deems
(K) Such additional provisions to protect the
necessary from time to time.
SECTION 2.11 Transfer of Property.
The full amount owed on any loan for Residential Construction made pursuant to the Program shall be
due and payable upon the sale or other etloan to the buyer or t�ansfeeesmay betpermittednn ac allowed
cordance with
and Federal law, and assignment of
law.
SECTION 2.12 Default Under Mortgage.
Mortgages held as security for Mortgage Loans made under the Program which are in default may be
e contained therein.
foreclosed by the Servicer according to n the the
the trustee ustee under power of
the deed of trlust upon foreclosure
The Servicer is authorized to take titl e i
and the trustee is authorized to subsequently convey title to such property to the Mortgage Insurer upon
receipt of the Mortgage Insurance ioroto trustee
such assignment the Servicer
theebestinteresot of the City
Mortgage to the Mortgage Insurer pr
and its Bondholders and only upon written direction of the City.
SECTION 2.13 Subsequent Mortgage Loans.
Subject to any limitations contained in the General Resolution or in the applicable Series Resolution,
upon the prepayment of any Mortgage Loan, moneys received therefrom may be used to make a subsequent
Mortgage Loan for the same purpose and under the same conditions as the initial Mortgage Loan.
SECTION 2.14 Mortgage Servicing.
Contemporaneously with entering into a Mortgage Loan
gage Agreement with a Qualified Mort-
gage Lender, the City shall enter into a Mortgage Servicing Agreement with such Qualified Mortgage
Lender and/or Servicer. Servicing of each Mortgage Loan shall be accomplished pursuant to a Mortgage
Servicing Agreement.
SECTION 2.15 Interim Financing of Residential Construction.
At the time of the submission to the City of application
Mortgage Len dergfor the purpose time
rece hvi gita
is presented with a Mortgage Loan by Q ualified
commitment to purchase such Mortgage Loan from the Qualified Mortgage Lender, the City shall approve
the terms and conditions of any interim rest rate,discount and origination fees) to the lender of the interim
Construction. The yield (including ante
financing shall not exceed the yield on similar loans as shall be established from time to time by the City.
8 12/28/79
60,005-39-1
ARTICLE III
ADDITIONAL FINANCIAL ASSISTANCE FOR RESIDENTIAL CONSTRUCTION
(RESERVED)
ARTICLE IV
MISCELLANEOUS
SECTION 4.01 Waiver.
The City by resolution may waive or vary particular provisions of these Rules and Regulations:
(1) to conform to the requirements of any Federal Agency or the State in connection with the
Program with respect to which Federal assistance is sought; or
(2) due to exceptional circumstances if, in the determination of the City, the application thereof to
a specific case or under an emergency situation may result in undue hardship.
SECTION 4.02 Severability.
If any clause, sentence, paragraph, section or part of these Rules and Regulations shall be adjudged by
any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part
thereof directly involved in the controversy in which such judgment shall have been rendered.
SECTION 4.03 Certain Arrangements Prohibited.
No person from whom the City may acquire or to whom the City may make Mortgage Loans shall,
pursuant to any arrangement, formal or informal, purchase Bonds in an amount related to the amount of
Mortgage Loans to be acquired from such person by the City.
SECTION 4.04 Amendment.
These Rules and Regulations may be amended and supplemented by the Agency at such times and in
such manner as it may determine, to the extent not inconsistent with the Ordinance, the provisions relating
to any Outstanding Bonds or with other applicable provisions of law.
60,005-39-1 9 12/28/79