Resolution - 6604RESOLUTION NO. 6604
RESOLUTION OF THE CITY COUNCIL OF THE CITY
• OF WEST COVINA APPROVING AND AUTHORIZING AND DIRECTING
EXECUTION OF LOAN AGREEMENT AND TRUST AGREEMENT REGARDING
FINANCING OF COMMERCIAL FACILIATIES BY
VAL J. FEJTEK, DBA SOUTHLAND MOTORS
C�
WHEREAS, the Redevelopment Agency of the City of West Covina (the
"Agency") wishes to assist the financing by Val J. Fejtek, dba Southland
Motors, (the "Participating Party") of an automobile dealership and related
commercial facilities by providing funds in the amount of not to exceed
$3,500,000 to Bank of America National Trust and Savings Association to be
loaned to the Participating Party; and
WHEREAS, in order to provide funds for such purpose the Agency has
requested the City to enter into a Loan Agreement, dated as of November 1,
1982, by and between the City as lender and the Agency as borrower (the "Loan
Agreement"); and
WHEREAS, the City purposes to raise moneys to be loaned to the Agency
pursuant to the Loan Agreement by entering into a Trust Agreement, dated as of
November 1, 1982, by and among the City, the Agency and a trustee bank (the
"Trust Agreement"), whereby the City will assign its rights under the Loan
Agreement to said trustee and said trustee will execute and deliver not to
exceed $3,500,000 principal amount of certificates of participation (the
"Certificates of Participation") representing proportionate interests in the
Agency's payments under the Loan Agreement; and
WHEREAS, the City has no financial obligations or liabilities under the
Loan Agreement or the Trust Agreement, other than to loan the proceeds of sale
of the Certificates of Participation to the Agency;
NOW, THEREFORE, BE IT RESOLVED BY THE City Council of the City of West
Covina as follows:
Section 1. Loan Agreement. The City Council hereby approves the Loan
Agreement in substantially the form presented at this meeting together with
any additions thereto or changes as to the form thereof deemed advisable by
Jones Hall Hill & White, A Professional Law Corporation. The Mayor and City
Clerk are hereby authorized and directed to execute said Loan Agreement for
and in the name and on behalf of the City.
Section 2. Trust Agreement. The City Council hereby approves the Trust
Agreement in substantially the form presented at this meeting together with
any additions thereto or changes as the form thereof deemed advisable by Jones
Hall Hill & White, A Professional Law Corporation. The Mayor and City Clerk
are hereby authorized and directed to execute said Trust Agreement for and in
the name and'on behalf of the City.
• Section 3. Sale of Certificates of Participation Subject to Final
Approval. The sale of the Certificates of Participation shall be subject to
future approval by the City Council in its sole discretion, notwithstanding
anything in this resolution to the contrary. Until such approval, the
executed Loan Agreement and the executed Trust Agreement shall not be delivered
to the respective parties thereto, nor shall the obligations of the City there-
under become effective without such delivery.
Section 4. Effective Date. This resolution shall take effect from
and after its adoption.
Section 5. Certification to Adoption. The`C.ity Clerk shall certify
to the adoption of this Resolution.
APPROVED AND ADOPTED this 27th day of September 1982.
Zink
Mayor
ATTES
./
• City Clerk
I HEREBY CERTIFY that the foregoing Resolution No. 6604 was duly
adopted at a regular meeting of the City Council of the City of West Covina
on the 27th day of September 1982, by the following vote:
AYES: Councilmen: Bacon, Shearer, Chappell, Tice
NOES: Councilmen: None
ABSENT: Councilmen: None
ABSTAIN: Councilmen: Tennant
APPROVED AS TO FORM:
General Counsel
•
Q�
City Clerk