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Resolution - 6792RESOLUTION NO. 6791. A RESOLUTION OF THE CITY OF WEST COVINA is AUTHORIZING THE ISSUANCE OF $2,900,000 PRINCIPAL AMOUNT OF MORTGAGE REVENUE BONDS SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS OF THE DATE OF THE BONDS, AUTHORIZING THE SALE OF SUCH BONDS., AND AUTHORIZING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS, DOCUMENTS AND ACTIONS WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of. California (herein called the "Act") authorizes cities and counties to issue revenue bonds for the purpose of financing home mortgages authorized by the Act, and the Act provides a complete, additional and alternative method for doing the things authorized thereby; WHEREAS, pursuant to the Act, the City is authorized to carry out the public purposes described therein by issuing its revenue bonds to acquire home mortgages and by pledging such home mortgages as security for payment of the principal of an interest on such revenue bonds, and by enter.ing into any agreements in connection therewith; WHEREAS, to alleviate the shortage of affordable residential housing facilities, and to provide capital for investment in such facilities for low and moderate income families and persons within the City; the City has developed and determined to implement a program (the."Program") with respect to (i) the issuance by the City of its 1983 Single Family Mortgage Revenue Bonds (the "Bonds"), and (ii) the use of the Bond. proceeds by the City to purchase without recourse from a lending institution (the "Lender") certain home mortgages (the "Home Mortgages"), made to finance residential facilities intended for use as the permanent place of residence by primarily first-time Home buyers who are persons. of low and .moderate income (the "Homes"), which Home Mortgages are to be originated and serviced by the Lender pursuant to a Home Mortgage Purchase Agreement and a Servicing Agreement (together the "Agreements"); WHEREAS, the City and the developer of the Homes will enter into an agreement (the "Commitment.Contract") for the purpose of setting forth, among other things, the terms and conditions pursuant to which the developer will deliver Home Mortgages for purchase by the trustee for the Bonds on behalf of the City and the City will reserve proceeds of the Bonds to provide funds for such purpose; WHEREAS, the City has now determined to issue the Bonds and to enter into a Trust Indenture to secure the Bonds by a pledge and assignment of the Home Mortgages, the proceeds. of the Bonds, certain insurance proceeds, certain reserve funds, certain investment earnings on the proceeds of the Bonds and the revenues received from.the Home Mortgages and its rights under . the Commitment Contract and the Agreements; WHEREAS, Rod Gunn & Associates (the "Financial Consultant") has caused a Preliminary Official Statement relating to the Bonds, to be submitted to the City for review by the City with the aid of its staff and for approval for distribution to prospective purchasers of the Bonds; and WHEREAS, Wm. E. Pollock & Co., Inc. (the "Underwriter") has submitted an agreement for the purchase of such Bonds (the "Purchase Agreement") and it is desirable that the Bonds be sold at this time. , • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Covina as follows: Section 1. The City of West Covina 1983 Single Family Mortgage Revenue Bonds, in a principal amount of $.2,900,000, are hereby authorized to be issued pursuant to a Trust Indenture dated as of the date of the Bonds, in form substantially as submitted to the City at this meeting, which Trust Indenture is hereby approved and authorized and directed to be executed by the Assistant City Manager of the City on behalf of the City and his signa- ture thereto to be attested by the City Clerk of the City who shall affix thereto the official seal' of the City. Section 2. The Preliminary Official Statement relating to the Bonds, substantially in the form presented to the City at this meeting, is hereby approved for distribution to investment banking firms, banking institutions and other prospective purchasers of the Bonds and. the Mayor of the City shall cause its execution, and the execution of a Final Official Statement relating to the Bonds, together with such amendments and supplements thereto as shall be necessary or convenient to accurately describe the Bonds in accordance with this Resolution, the Trust Indenture, the Purchase Agreement and the other related agreements and documents. Section 3. The Purchase Agreement for purchase of the $2,900,000 principal amount of City of West Covina 1983 Single Family Mortgage Revenue Bonds, in the form submitted to the City at this meeting, is hereby approved and the Assistant City Manager of the City is authorized and directed to execute the Purchase Agreement on behalf of the City. Section 4. The Commitment Contract (and Reservation of Funds) with the developer proposing to participate in the City's Program and the Home Mortgage Purchase Agreement and the Servicing Agreement with the Lender proposing to participate in the City's Program.are hereby approved in substantially the forms presented at this meeting and the Assistant City Manager of the City is authorized and directed to execute the foregoing on behalf of the City with such amendments and supplements thereto as shall cause the foregoing to conform to the requirements of the City's Program. Section 5. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and, upon execution of the Purchase Contract, the Mayor, the Assistant City Manager,'the City Clerk and the City Treasurer are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions and to execute and deliver any and all certificates, requisitions, agreements, including an agreement for investment of the proceeds of the Bonds and of the Home Mortgages, a compliance agreement with a private mortgage insurer for the Program and other documents, including, but not limited to, those described in the Purchase Agreement and Section 211 of the Trust Indenture, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Purchase Agreement, the Trust Indenture, this Resolution and all related • documents.