Resolution - 7122RESOLUTION NO. 7122
• A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA APPROVING AND AUTHORIZING AND DIRECTING THE
LOAN OF FEDERAL SECURITIES TO THE REDEVELOPMENT AGENCY
OF THE CITY OF WEST COVINA IN CONNECTION WITH PUBLIC
PARKING FACILITY FINANCINGS
• WHEREAS, the Redevelopment Agency of the City of West Covina (the
"Agency") is authorized by the Community Redevelopment Law, constituting Part 1
of Division 24 of the California Health and Safety Code, to acquire real pro-
perty within redevelopment project areas; and
WHEREAS, the Agency has heretofore adopted its Resolution No. 324
approving the financing of four public parking facilities and related property
(collectively, the "Projects") described more fully in said Resolution No.
324; and
WHEREAS, in connection with such financings Security Pacific National
Bank (the "Bank"), as issuer of the direct -pay letters of credit which secure
such financings, has requested that the Agency deposit certain securities
having a par value of $3,100,000 with Dai-Ichi Kangyo Bank of California as
trustee (the "Trustee") to be applied as set forth more fully in those certain
four Collateral Agreements, each dated as of November 1, 1985, by and among
the Bank, the Parking Authority of the City of West Covina (the "Authority"),
the Agency and the Trustee (collectively, the "Collateral Agreements"); and
WHEREAS, the City of West Covina (the "City") presently owns
certain obligations of the Federal National Mortgage Association maturing
December 10, 2013 (the "FNMA Securities") having a par amount of $3,100,000,
which represent the investment of City reserves which are not needed for cur-
rent needs of the City, and the City has proposed making a loan of the FNMA
Securities to the Agency in order to enable the Agency to secure its obliga-
tions pursuant to the Collateral Agreements; and
WHEREAS, the City Council approves of said transactions in the public
purposes of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
West Covina, as follows:
Section 1. Approval of Loan to Agency. The City Council hereby
authorizes and approves the loan (the "Loan") of the FNMA Securities by the
City to the Agency for the purpose of enabling the Agency to secure its obli-
gations pursuant to the Collateral Agreements. The principal amount of the
Loan shall be $3,100,000, and interest on the Loan shall be computed at the
rate of interest borne by the FNMA Securities. Interest on the Loan shall be
payable from the interest earnings on the FNMA Securities, and the principal
of the Loan shall be repaid by the Agency from the FNMA Securities as the
same shall be released, in whole or in part, from time to time from the
pledge thereof pursuant to the Collateral Agreements, or from any other
source of available funds of the Agency. The Mayor or any member of the
City Council is hereby authorized and directed to enter into an agreement
with the Agency incorporating the terms of the Loan herein described to-
gether with such incidental terms and provisions as the Mayor or such member
of the City Council shall deem advisable and not inconsistent with the pro-
visions of this Section 1.
Section 2. Effective Date. This Resolution shall take effect from
• and after its adoption.
Section 3. The City Clerk shall certify to the Adoption of=this
Resolution.
APPROVED AND ADOPTED this 25 day of November, 1985.
•
Mayor
ATTEST:
V
City Clerk
I HEREBY CERTIFY that the foregoing Resolution No. 7122 was -duly
adopted by the City Council of the City of West Covina at a regular meeting
thereof held on the 25th day of November, 1985, by the following vote:
AYES: Bacon; Manners, Chappell, Shearer, Tennant
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED AS TO FORM:
City 7ttorney
i
City Clerk