HomeMy WebLinkAbout1981-121 RESOLUTION NO.,?/-/,7/
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING CERTAIN RIDERS TO
THE PROMISSORY NOTE IN CONNECTION WITH ITS RESIDENTIAL
MORTGAGE FINANCING PROGRAM.
WHEREAS, the Mayor and Common Council of the City of San Bernardino
("the City") has previously issued its $41,625,000 Residential Mortgage Financing
Bond Program ("the Bonds") to provide mortgage monies for the financing of home
projects; and
WHEREAS, it has become necessary for the City to adopt certain proposed
Riders to the Promissory Note executed in connection with the program.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS
FOLLOWS:
Section 1. The City hereby approves the Riders to the Promissory Note
substantially in the forms attached hereto and incorporated herein.
Section 2. The City requests that the qualified mortgage lender for the
program incorporate said Riders to the Promissory Note, or Deed of Trust, as
appropriate.
Section 3. This resolution shall become effective upon adoption.
I HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Mayor and Common Council of the City of
San Bernardino at aln meeting thereof, held on
the ? day of 1981 , by the following vote,
to wit :
AYES: Councilmen:
jiS4�-y 4
l
NAYS:
ABSENT :
City Clerk
The foregoing Resolution is hereby approved
� �*City 1981 .
this C�/,j� day of
of ino
APPROVED AS TO FORM:
D,-, Clty ttorney
THE NOTE IS AMENDED TO ADD THERETO THE FOLLOWING PARAGRAPH WHICH
SHALL READ IN ITS ENTIRETY AS FOLLOWS:
"In the event that, at any time after the date of recordation the Deed
of Trust which secures this Note, the Property (as that term is defined in the
Deed of Trust) is not owner-occupied, that is. occupied by Borrower as Borrower's
principal residence, the rate of interest hereinbefore specified shall , to the
extent permitted by law, be increased as of the last business day of the
calendar month in which such event occurs (hereafter referred to as the
"Adjustment Date") to the annual rate of interest for conventional mortgage
loans made by Lender (as that term is defined in the Deed of Trust) in the
ordinary course of business upon prime residential property as of the Adjustment
Date. Any increase in such rate of interest will result in an increase in the
amount of each of the monthly installments due after the Adjustment Date so
that such monthly installments are sufficient in amount to amortize a loan
with the same principal balance at the increased rate of interest over the
remaining period from the Adjustment Date to the maturity date specified in
the first paragraph of this Note. "
THE LAST PARAGRAPH OF THE NOTE AND PARAGRAPH 17 OF THE DEED OF TRUST ARE EACH
AMENDED TO READ IN FULL AS FOLLOWS:
"17. Transfer of Property; Assumption. In consideration of the fact that
the City of San Bernardino herein called "City") has subsidized, through the use
of tax-exempt mortgage revenue bond financing, the purchase of the Property so
that Borrower was able to purchase such Property at an affordable price, Borrower
agrees that, if all or any part of the Property or an interest therein is sold or
transferred, whether by deed, contract of sale or otherwise, without City' s prior
written consent to a person who does not own and occupy the Property as his
principal residence, City may, at City's option, declare all the sums secured by
this Deed of Trust to be immediately due and payable. City shall have waived
such option to accelerate if, prior to the sale or transfer, City and the person
to whom the Property is to be sold or transferred reach agreement in writing that
such person intends to own and occupy the Property as his principal residence
III and agrees to assume the obligations of Borrower under the Note and this Deed of
Trust. If City has waived the option to accelerate provided in this paragraph 17,
and if Borrower' s successor in interest has executed a written assumption agreement
accepted in writing by City, City shall release Borrower from all obligations
under this Deed of Trust and the Note.
If City exercises such option to accelerate, City shall mail Borrower and
Borrower's successor notice of acceleration in accordance with paragraph 14 hereof.
Such notice shall provide a period of not less than 30 days from the date of the
notice is mailed within which Borrower or Borrower's successor may pay the sums
declared due. If Borrower or Borrower's successor fails to pay such sums prior
to the expiration of such period, City may, without further notice or demand on
Borrower or Borrower's successor, invoke any remedies permitted by paragraph
18 hereof. "
THE DEED OF TRUST IS AMENDED TO ADD THERETO PARAGRAPH 26 WHICH SHALL
READ IN ITS ENTIRETY AS FOLLOWS:
"26. Misrepresentation or Nondisclosure. Borrower has made certain
written representations and isc osures n order to induce Lender to make
the loan evidenced by the Note or notes which this Deed of Trust secures,
and in the event that Borrower has made any material misrepresentation
(including, without limitation, any misrepresentation regarding Borrower' s
principal residence) or failed to disclose any material fact, Lender, at
its option and without prior notece, shall have the right to declare the
indebtedness secured by this Deed of Trust, irrespective of the maturity
date specified in the Note or notes, immediately due and payable. Trustee,
upon presentation to it of an affidavit signed by Lender setting forth
facts show��geaad�f�onclusiBerallefactseand this
statementsptherein�,tanditod to
accept as
act thereon. "
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