HomeMy WebLinkAboutCC RESO 15,395RESOLUTION NO. 15,395
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA AUTHORIZING THE ESTABLISHMENT OF A GUARANTEED LOAN FUNDS
ACCOUNT FOR FUNDS RECEIVED BY THE CITY OF NATIONAL CITY UNDER NOTE(S)
GUARANTEED BY THE U.S. DEPARTMENTS OF HOUSING AND URBAN DEVELOPMENT (HUD)
UNDER THE SECTION 108 LOAN GUARANTEE PROGRAM AND A GUARANTEED LOAN
FUNDS INVESTMENT ACCOUNT TO HOLD OBLIGATIONS AND THEIR ASSIGNMENTS,
SUCH OBLIGATIONS HAVING BEEN PURCHASED WITH FUNDS FROM THE
GUARANTEED LOAN FUNDS ACCOUNT
WHEREAS, the City Council of the City of National City, California,
by adoption of Resolution No. 15,242 on March 17, 1987, authorized and approved
the filing of an application to the U.S. Department of Housing & Urban
Development (HUD) for a loan of $700,000 pursuant to the HUD Loan Guarantee
Program; and
WHEREAS, all funds received by the City of National City under the
contract for Loan Guarantee Assistance ("Contract") between the City of
National City, California as Borrower (the "Borrower") and the Secretary of
Housing and Urban Development ("Secretary") as guarantor for the guarantee made
pursuant to Section 108 of Title I'of the Housing and Community Development Act
of 1974, as amended ("Title I"), are required to be deposited in a separate
identifiable account (the "Guaranteed Loan Funds Account") with a financial
institution whose deposits are Federally insured; and
WHEREAS, the balance of deposited funds exceeding such insurance
coverage shall be fully collateralized by Government Obligations; and
WHEREAS, the Borrower is authorized to make withdrawals from the
Guaranteed Loan Funds Account only for the payment of the costs of approved
activities or for the temporary investment of funds in Government Obligations;
and
WHEREAS, Government Obligations purchased with funds from the
Guaranteed Loan Funds Account are required to be held in trust for the benefit
of the Secretary by the above financial institution in a separate identifiable
account (the "Guaranteed Loan Funds Investment Account").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City, California that the Director of Finance is hereby authorized and
directed to establish a custodial account to be specifically designated "City
of National City, California, Section 108 Guaranteed Loan Funds Account Trustee
of United States Department of Housing and Urban Development" and an account
specifically designated "City of National City, California, Section 108
Guaranteed Loan Funds Investment Account Trustee of United States Department of
Housing and Urban Development" in a financial institution meeting the standards
set forth above.
PASSED and ADOPThL) this 18th day of August, 1987.
aoGeorge H. Waters,. Mayor
Ai'1'hST.
Ione Campbell, Cit Clerk
APP
AS TO FO:
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George H.'Eiser, III -City Attorney