HomeMy WebLinkAbout1980-246 RESOLUTION NO. 00
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTION OF THE MORTGAGE LOAN-PURCHASE AGREEMENT FOR THE PURPOSE OF
MAKING MORTGAGE LOANS FOR FINANCING RESIDENTIAL HOUSING.
WHEREAS, the City of San Bernardino (the"City") is a municipal corporation duly created,established
and authorized to transact business and exercise its powers, all under and pursuant to the Constitution and
laws of the State of California, and the City Charter of the City, and the powers of the City include the
power to issue bonds for any of its corporate purposes; and
WHEREAS, pursuant to Ordinance No. 3853 the City may issue Revenue Bonds for the purpose of
Financing Residential Housing as authorized by said Ordinance; and
WHEREAS, in connection with its proposed issuance of Revenue Bonds for the purpose of Financing
Residential Housing authorized by the Ordinance, it is necessary that the City adopt the Mortgage Loan-
Purchase Agreement, pursuant to the Ordinance, for all Residential Housing 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:
SECTION 1. Approval.
The Mortgage Loan-Purchase Agreement set forth on Exhibit A, attached hereto and made a part
hereof, to be used by the City in Financing Residential Housing, is hereby adopted and approved with the
Qualified Mortgage Lender named therein.
SECTION 2. Authorization to Execute.
The Mayor and City Clerk shall execute the Mortgage Loan-Purchase Agreement on behalf of the City
in final form as attached hereto as Exhibit A.
SECTION 3. Effective Date.
This Resolution shall take effect upon ad ptior�.
r
ADOPTED AND APPROVED the /?day of ... . '!%.. 1980.
ayor f e ty of San Ber dino
[SEAL]
ATTEST:
City Clerk of the City of San Bernardino
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) SS. CITY CLERK'S CERTIFICATE
CITY OF SAN B RNARDINO ) RE ADOPTION OF RESOLUTION
I,Shi aw .��1-lk' City Clerk of the City of San Bernardino, DO HEREBY CERTIFY that the
forego i`ng Resolution was duly adopted by said City at a �u.l.�+�c. meeting of said City held on the /(, day
of ..... .) .uc........ 19?,0, and that the same was passed and adopted by the following v te, to wit:
AYES: j e
114'e G6lers: f
m ers:
NOES: �JMembers:
ABSENT: Members: r.
ABSTAIN: Members: n„J
City Clerk of the City
of San Bernardino
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) SS. CITY CLERK'S CERTIFICATE
CITY OF SAN BERNARDINO ) OF AUTHENTICATION
I. ....................... City Clerk of the City of San Bernardino, DO HEREBY CERTIFY that the above
and foregoing is a full, true and correct copy of Resolution No.�:dlkiid City and that said Resolution was
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]
60,005-39-4 2 6/16/80
80-246
(EXHIBIT A)
CITY OF SAN BERNARDINO
MORTGAGE LOAN-PURCHASE AGREEMENT
This Mortgage Loan-Purchase Agreement (the "Agreement") is entered into as of the date of
execution hereof, by and between the City of San Bernardino (the "City"), pursuant to the Ordinance, and
the Qualified Mortgage Lender named on the signature page hereof.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
Section 1. Definitions.
In this Agreement, unless a different meaning clearly appears from the context, all specially defined
terms shall have the same meaning as prescribed by A Resolution of the Mayor and Common Council of the
City of San Bernardino Authorizing the Issuance of Single Family Residential Mortgage Revenue Bonds for
the Purpose of Making Mortgage Loans to Finance Residential Housing (the "General Resolution") as
adopted and approved by the City, and A Resolution of the City of San Bernardino Authorizing the
Issuance of $41,625,000 Single Family Residential Mortgage Revenue Bonds, 1980 Series A, for the
Purpose of Making Mortgage Loans to Finance Residential Housing (the"Series Resolution") providing for
the issuance of"City of San Bernardino, Single Family Residential Mortgage Revenue Bonds, 1 980 Series
A" (the "Bonds").
Section 2. Origination of Mortgage Loans.
(a) The Qualified Mortgage Lender agrees to use its best efforts to originate and sell, and the City
agrees to purchase, Mortgage Loans in an aggregate principal amount of $34,234,000.
(b) The City agrees to purchase each such Mortgage Loan at an amount equal to the principal
balance, plus accrued interest, if any, of such Mortgage Loan on the "Date of Purchase" by the City.
The Date of Purchase shall be any date, not more frequent than once each week,on which the Qualified
Mortgage Lender delivers a Mortgage Submission Voucher to the City.
Section 3. Mortgage Loans.
Each Mortgage Loan purchased hereunder shall meet the following terms and conditions, and the
Qualified Mortgage Lender represents and warrants with respect to each such Mortgage Loan, as of the
date of delivery thereof:
(a) The Mortgagor is the owner of the mortgaged premises, which premises are located within the
boundaries of the City,
(b) To the best knowledge of the Qualified Mortgage Lender, no counterclaim, offset, defense or
right of rescission exists which can be asserted and maintained by the Mortgagor or his successor in
interest against the City;
(c) The Mortgage Loan complies with all applicable local, state and federal laws, rules and
regulations which govern the affairs of the Qualified Mortgage Lender and the Mortgagor, including all
applicable truth-in-lending and anti-discrimination laws;
(d) The proceeds of the Mortgage Loan will be or have been devoted to purchasing dwellings
which constitute Residential Housing within the meaning of the Ordinance, the General Resolution and
the Series Resolution;
(e) To the best knowledge of the Qualified Mortgage Lender, the mortgaged premises and
improvements thereon have not been damaged by waste, fire,earthquake,wind,storm, Hood, tornado or
other cause so as to affect adversely the value of the Mortgage Loan to the City or the use of such
premises and improvements for the purposes for which they were intended, and there is no pending or
threatened proceeding for the total or partial condemnation of said premises;
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(f) The improvements on the mortgaged premises are the subject of a valid and subsisting policy of
Hazard Insurance with an endorsement by the insurer in favor of the City, issued by a company
meeting the insurance requirements of the Federal National Mortgage Association or Federal Home
Loan Mortgage Corporation lawfully doing business in the State, in an amount equal to the greater of
eighty percent (80%) of the insurable value of said improvements at the time of the origination of the
Mortgage Loan, or one hundred percent (100%) of the principal balance owing on the Mortgage Loan,
provided that each such policy of Hazard Insurance shall also have an earthquake endorsement
providing insurance against damage due to earthquake (such endorsement may provide for a deductible
amount not exceeding five percent (5%)),and, if located within a designated flood area,flood insurance;
(g) The Mortgage Loan was originated by the Qualified Mortgage Lender after the execution of
this Agreement and delivery of the Bonds;
(h) The Qualified Mortgage Lender has complied with all legislation, rules and regulations and
administrative publications relating to the insuring of the Mortgage Loan and such insurance shall be
in full force and effect, will meet the insurance standards established by the City and will inure to the
benefit of the Qualified Mortgage Lender within such time limits as are customary for the type of
Mortgage Insurance involved, or the Qualified Mortgage Lender will repurchase the Mortgage Loan at
the same percentage of the then outstanding principal balance as was paid by the City plus accrued
interest;
(i) The Mortgage Loan is an interest bearing obligation secured by a Mortgage on a Residence
located in the City, and the Mortgage is the subject of an ALTA title insurance policy with CLTA
endorsements 100 and 116 attached thereto ("Title Insurance Policy") in an amount at least equal to
the outstanding principal amount of the Mortgage Loan, and insuring that the Mortgage constitutes a
first mortgage lien on the mortgaged premises subject only to real property taxes and assessments not
yet due and liens and encumbrances customarily accepted in accordance with generally accepted title
standards; and the period required for the perfection of mechanic's or materialmen's liens for work
performed or materials supplied prior to the date of the Mortgage Loan has expired;
(j) The Mortgage Loan is for a term of thirty (30) years and provides that interest, at the annual
rate designated by the City, shall be payable in monthly installments on the principal amount of the
Mortgage Loan outstanding on the due date of each installment (which shall be the first day of each
month, and any grace period in connection therewith shall not exceed fifteen (15) days unless otherwise
approved by the City), and the sum of the principal and interest payments due each month is
substantially equal;
(k) The unpaid principal balance on each Mortgage Loan and the interest, including accrued
interest, if any, is due and payable in accordance with the Mortgage Loan;
(1) The Qualified Mortgage Lender has taken no action which has subordinated, waived, altered,
impaired, or modified in any other respect the Mortgage, or to release any part of the mortgaged
property therefrom, which would materially affect the value, validity, enforceability, prompt payment,
the security of the lien of the Mortgage, or the insurance on the Mortgage Loan;
(m) The Mortgage is not subject to any existing assignment or pledge and the Qualified Mortgage
Lender has good title thereto and full right and authority to assign and transfer the same and to endorse
and deliver the Mortgage Loan and all documents described in Section 4(b) to the City, free and clear
of encumbrances except liens and encumbrances customarily accepted in accordance with generally
accepted title standards and those approved in writing by the City;
(n) In the reasonable judgment of the Qualified Mortgage Lender, the Mortgage Loan represents
a prudent investment for its own account, except that the interest rate may be below that which would
be charged by private lenders on the open market;
(o) With respect to each mortgaged property financed by a Mortgage Loan, the Mortgagor has
furnished to the Qualified Mortgage Lender a statement certifying as to intent to occupy such
mortgaged property and that the residential structure involved in the Mortgage Loan is either a one (1)
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unit single family residential dwelling unit to be occupied by the Mortgagor or a condominium unit to
be occupied by the Mortgagor;
(p) The Mortgage Loan is (1) insured by FHA, (2) guaranteed by VA, or (3) insured by a PMI
licensed to do business in the State of California and approved by the Federal Home Loan Mortgage
Corporation and the City so that the uninsured portion of the Mortgage Loan is not in excess of sixty
percent (60%) of the lower of the original appraised value or cost of the mortgaged property financed
thereby, provided, however, that any Mortgage Loan insured by a PMI policy shall (unless otherwise
approved by the City) at least be insured in an amount equal to five percent (5%) of the principal
amount of such Mortgage Loan; and
(q) The Mortgage Loan provides that in the event of prepayment of all or any portion of the
principal amount thereof within five (5) years of the date of origination thereof, the Mortgagor shall
pay a prepayment penalty equal to six (6) months' interest on the amount of prepayment in any year to
the extent the amount of such prepayment exceeds twenty percent (20%) of the original principal
amount of the Mortgage Loan.
Section 4. Delivery and Acceptance of Mortgage Loans.
(a) The Qualified Mortgage Lender agrees to use its best efforts to deliver Mortgage Loans to the City
for purchase in the amount set forth in Section 2, but in no event later than April 15, 1983, and the City
shall have no obligation to purchase Mortgage Loans thereafter. Of the cumulative total principal amount
of Mortgage Loans delivered by the Qualified Mortgage Lender to the City hereunder, no more than fifty
percent (50%) of such amount shall be Mortgage Loans insured by PMI having a loan-to-value ratio of
ninety-five percent (95%) at the time of origination, and no more than twenty-five percent (25%) shall be
Mortgage Loans insured by FHA or guaranteed by VA.
(b) The Qualified Mortgage Lender shall deliver to the City on each Date of Purchase a Mortgage
Submission Voucher identifying the Mortgage Loans sold to the City on such date, and the price thereof,
accompanied by the following:
(i) The original duly executed Mortgage Loan endorsed by the Qualified Mortgage Lender as
follows: "Payable without recourse to the order of the City of San Bernardino";
(ii) A certified copy of the Mortgage;
(iii) The "Satisfactory Completion Certificate" as signed by an appraiser of the Qualified
Mortgage Lender;
(iv) A copy of the firm commitment and the certificate of insurance or guarantee issued by FHA,
VA or a PMI;
(v) A closing statement clearly identifying all costs, fees or other closing related expenses paid by
the Mortgagor;
(vi) The original fully executed and notarized assignment of the Mortgage in recordable form; and
(vii) Such other documents or information as the City may reasonably request.
(c) As soon as practicable after the purchase of each Mortgage Loan, (i) the Qualified Mortgage
Lender shall deliver to the Trustee the Title Insurance Policy and (ii) true and correct copies of all original
documents for each such Mortgage Loan shall be placed and kept by the Trustee as the City shall require in
files specifically designated as containing documents pertaining to Mortgage Loans of the City as a service
file to be available to the Servicer.
(d) All funds collected prior to the delivery of a Mortgage Loan to the City by the Qualified Mortgage
Lender pursuant to the terms of a Mortgage Loan which are required to be held by the Qualified Mortgage
Lender in escrow for the payment of taxes, insurance and similar items which have not been so used shall,
upon delivery of the Mortgage Loan, be transferred into a special custodial account, as provided in Section
3.2(k) of the Mortgage Servicing Agreement.
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Section 5. Fees and Expenses.
(a) The closing costs, fees or charges, of whatsoever kind or nature, which the Qualified Mortgage
Lender shall collect from any party with respect to the making of any Mortgage Loan to be purchased
hereunder,shall not exceed the aggregate of: (i) the actual and reasonable amounts expended for, including,
but not limited to, title insurance,credit reports,surveys, appraiser's fees, recording fees and attorney's fees;
(ii) origination fees totaling not in excess of one percent (1%) of the principal amount of such Mortgage
Loan; and (iii) an amount equal to interest on the Mortgage Loan from the date of closing to thirty (30)
days prior to the first due date on such Mortgage Loan, such date being the Mortgagor's first principal and
interest payment on the Mortgage Loan; provided, however, that this limitation shall not apply to funds
collected and used as specified in Section 4(d) above. No other fees, charges, or other remuneration
(including charges commonly known as "points") shall be directly or indirectly received by the Qualified
Mortgage Lender in making any such Mortgage Loan unless specifically authorized by the City in writing.
(b) As between the Qualified Mortgage Lender and the City, the Qualified Mortgage Lender shall be
responsible for expenses incurred in connection with the preparation and furnishing to the City of all
instruments herein specified, and expenses in connection with the origination and sale of Mortgage Loans,
including, but not limited to, the cost of preparing documents, and legal fees other than legal fees for
services rendered by counsel to the City.
Section 6. Hazard Insurance.
As to each Mortgage Loan purchased hereunder by the City, the Qualified Mortgage Lender shall prior
to the delivery thereof to the City notify the insurance company or companies issuing any policy or policies
insuring each mortgaged premises against loss or damage by fire or other hazard, that, effective on the date
of such delivery, such Mortgage Loan will be conveyed to the City, and shall direct that the Servicer, its
successors or assigns be designated as a loss payee on said policies as its interest may appear, effective on
said date.
Section 7. Remedies.
(a) In the event that any representation with respect to a Mortgage Loan shall prove to have been
untrue when made or at the time of delivery of a Mortgage Loan to the City,the Qualified Mortgage Lender
shall, at the option of the City, repurchase the Mortgage adversely affected thereby at the then current
principal balance plus any interest thereon accrued and unpaid, provided that the Qualified Mortgage
Lender shall have fifteen (15) days from the date of receipt of notice by the City of said untrue
representation to cure same.
(b) In addition to the remedies set forth above, the parties shall have all remedies available at law or in
equity.
(c) All of such remedies shall be cumulative, and the exercise by either party of any one or more of
them shall not in any way alter or diminish the rights of such party to any other remedy provided herein or
by law.
(d) In the event of any such default and/or breach of this Agreement, by either party, such other party
not in default and/or breach shall be entitled to reimbursement from the other party of all of its costs in
enforcing any of such terms of this Agreement.
Section 8. Other Provisions.
(a) The provisions of this Agreement shall only be waived or modified in writing and signed by the
parties hereto. Such waiver or modification may be embodied in an Operating Memorandum approved by
the City and the Qualified Mortgage Lender and attached hereto as an addendum. Inaction or failure to
enforce strict performance by either party shall not be deemed a waiver.
(b) Each and every section of this Agreement is, and shall be construed to be, a separate and
independent covenant and agreement. If any term or provision of this Agreement or the application thereof
shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such
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term or provision to circumstances other than those to which it is invalid or unenforceable shall not be
affected thereby, and each term and provision of this Agreement shall be valid and shall be enforced to the
extent permitted by law.
(c) This Agreement shall be governed by the laws of the United States and of the State of California.
(d) Notices to the City or to the Qualified Mortgage Lender shall be sent to the respective principal
offices thereof.
Section 9. Execution.
This Agreement may be executed in counterparts,each of which shall be deemed to be an original, and
such counterparts shall constitute one and the same instrument.
EXECUTED at ..San...Bernardino.............I California, this .........` day of ...... June 19 80
CITY OF SAN BERNARDINO
or
[SEAL]
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
SANTA FE FEDERAL SAVINGS &
LOAN ASSOCIATION
("QUALIFIED MORTGAGE LENDER"),
a federally chartered mutual
savings and loan association
By -
President
[SEAL]
A istant cretary
60,005-39-4 5 6/16/80
STATE OF CALIFORNIA ) ss.
COUNTY OF SAN BERNARDINO )
On this 1.7... day ofJ.Upe., in the yearl.K$Q, before me, ....Sandra„A. Baxter......, a notary public in
and for the State of California,duly commissioned and sworn, rsonally appeared ..Wr...R,. Holcomb
........ . ........
......................... known to me to be the Mayor, and ...Shauna 1 ark ................ known to me to be the City
.............
Clerk, respectively,of the City of San Bernardino, that executed the within instrument,and known to me to
be the persons who executed the within instrument on behalf of said City therein named, and acknowledged
to me that such City executed the within instrument pursuant to a resolution of said City.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal in the
County of San Bernardino on the day and year in this certificate first above written.
(O:Fir,IAL SEAL) ;
SANDRA A. BAXTER
NOi.=P.'( PUH;;C - CALIFORNIA Notary Public in and for the State of California
SAP; B[P%AP,DINO COUNTY
±4af1`d '$ n'E fires Dec. 7, 1981
My commission expires: .........12-7-81
STATE OF CALIFORNIA ss.
COUNTY OF .San„Bernardino
On this 24.. day of .Junpin the year 1920, before me, ..M.ar t...A,...W.P-bb.................. a notary public in
and for the State of California,duly commissioned and sworn, personally appeared ... ..........
........................I known to me to be the President, and J YQXY.n„Gonj.'JUki.......... known to me to be the
Assistant Secretary, respectively, of Santa Fe Federal Savings & Loan Association, a federally chartered
mutual savings and loan association, that executed the within instrument, and known to me to be the persons
who executed the within instrument on behalf of said association and acknowledged to me that such
association executed the within instrument pursuant to a resolution of its board of directors.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal in the
County of S.an..Herrnarolri.rthe day and year in this certificate first above written.
Notary 7c in and or the State of California
(Notarial Seal)
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?J MARY A. W1811 My commission expires: ...12,-,20-80
...........
m NOTARY PUBLIC
a SAN BERNARDINO
COUNTY
CALIFORNIA
My Commission Expires Deeembg 20, 1980 _
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60,005-394 6 6/16/80