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HomeMy WebLinkAbout3944U '"-. San Bernardino 60,009-1-3 ORD INANCE NO. 3944 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING ORDINANCE NO. 3853 RELATING TO THE FINANCING OF ADEQUATE HOUSING FOR RESIDENTS OF THE CITY . . . AMENDING SUBSECTION E, F AND K OF SECTION 5 AND SECTION 8 RELATING TO INTEREST RATES AND DISCOUNT THE MAYOR AND 90MMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: Section 1. Amendment. Paragraphs E, F and K of Section 5 of Ordinance No. 3853 shall be amended to read as follows: "E. The Revenue Bonds may be issued as serial bonds or as term bonds, or the City in its discretion, may issue Revenue Bonds of both types. The Revenue Bonds shall be authorized by resolution of the Mayor and Common Council and shall bear such date or dates, mature at such time or times, not exceeding fifty (50) years from their respective dates of issuance, bear interest at such fixed or variable rate or rates, as the case may be, not to exceed those specified in the pro- ceedings, be payable at such time or times, be in such denominations, be in such form either coupon or registered, carry such exchange and registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places within or without the State, and be B95-ll (gl) ~ . 6/2/80 / t-....- Slin'Bernardino 60,009-1-3 subject to such terms of redemption as the resolution or resolutions of the City may provide. Pending preparation of the definitive bonds, the City may issue interim receipts, certificates, or tempo- rary bonds, which shall be exchanged for such definitive bonds." "F. The Revenue Bonds shall be signed on behalf of the City by facsimile signature of the Mayor and by manual signature of the City Clerk, and the seal of the City shall be impressed, imprinted and reproduced thereon. The interest coupons on the Bonds shall be signed by facsimile signature of the City Clerk. The foregoing officers shall be authorized and directed to sign the Bonds and coupons in accordance with this Section. If any City official whose manual or facsimile signature appears on the Bonds or coupons ceases to be such member or officer before delivery of the Bonds, such signature is as effective as if such official had remained in office. In lieu of the manual signature of the City Clerk on the Bonds, such signature may be by facsimile, in which case the'Bonds shall be authenticated by the manual signature of a duly authorized officer of the Trustee." "K. In the discretion of the City, any Revenue Bonds issued under the provisions of this Ordinance may be secured by a trust agreement by and between the City and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without this state. Such a trust agreement or the reso- lution providing for the issuance of Revenue Bonds may provide for the proceeds of the Bonds and the Revenues to be held in trust for the benefit of the bondholders and may pledge or assign the Revenues to be received or proceeds of any contract or contracts -2- B52-l3 (gl) 6/2/80 .- San Bernardino 60,009-1-3 pledged, and may conveyor mortgage any Residence the construction of which is to be Financed out of the proceeds of such Revenue Bonds. Such trust agree- ment or the resolution providing for the issuance of bonds may provide for the assignment to such corporate trustee or trustees of Financings, whether Insured Loans or otherwise, to be held by such trustee or trustees on behalf of the City for the benefit of the bondholders. Such trust agreement or resolution providing for the issuance of Revenue Bonds may contain such provisions for the benefit of the bondholders and for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including such provisions as may be included in any resolution or resolutions of the City authorizing the issuance of the Revenue Bonds. Any bank or trust company doing business under the laws of the State which may act as depositary of the proceeds of Revenue Bonds or of Revenues or other moneys may furnish such indemnity bonds or pledge such securities as may be required by the City. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee or trustees, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the City may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of Residential Housing." Section 2. Amendment. Section 8 of Ordinance No. 3853 shall be amended to read as follows: -3- B52-14 (gl) 6/2/80 San Bernardino 60,009-1-4 "Section 8. Sale of Bonds. Revenue Bonds issued pursuant to this Ordinance may be sold at such prices and in such manner as the Mayor and Common Council may direct, at public or private sale. Such Revenue Bonds may be sold at, above, or below the par or face value thereof, but the sale price shall be not less than the percentage of the par or face value of the Bonds specified in the proceedings." Section 3. Effective Date. This Ordinance is an urgency measure and shall take effect upon adoption. The facts constituting such urgency are: The present international situation and the energy crisis, which among other things, are causing the current rate of inflation and the economic downturn, have prompted efforts to control the inflation and such efforts have raised interest rates of private lending institutions to an extent not previously anticipated. The City cannot control these external forces, but it has enacted Ordinance No. 3853 to help to alleviate the shortage of decent, safe and sanitary housing in the City. Likewise, the State Legislature has enacted A.B. 2101, as an urgency measure, to enable the cur- rent financing to proceed prior to July 1, 1980. Although interest rates are tending to become lower, it is not known at present that they will decrease to such an extent as to be within the interest rate and discount limitations in Ordinance No. 3853. Several projects are currently pending. The high private interest costs will hamper construction -4- A227-9 (ds) 6/5/80 because of lack of financing. This makes the City financing pursuant to Ordinance No. 3853 even more critical. The amend- ment to Ordinance No. 3853 made by this Ordinance should expedite the financing of the facilities which will help to alleviate the housing problem in the City. I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Ber- na a regular meeting thereof, held on the </ day NOES: , 1980, by the following vote, to-wit: Councilmen: ;t".MJt,,~< g).L,d,~ 'd.uAA'?/ v!t)HT ~ ,yU;~'l/t) ~~-d ~.L~) of ABSENT: ~~~~// / CJ. ty Clerk foregoing Ordinance is hereby approved this /-t( , day of , 1980. J.no Approved as to form: ~~,,9 CJ.ty At orney