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277399 WHITE - CITY CLERK }�� PINK - FINANCE "4*5' CANARY - DEPARTMENT COUIICII ���d°,� BLUE - MAYOR GITY OF SAINT PALTL File NO. � � C uncil Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLUTION APPROVING THE SECOND SUPPLEMENTAL INDENTURE OF TRUST IN CONNECTION WITH THE BELOW MARKET INTEREST RATE PROGR�IM AND AUTHORIZING THE FXF.CUTION OF SAID DOCUMENT WHEREAS, (a) The City has issued its $50,000,000 Homeownership Mortgage Revenue Bonds, dated as of April 1, 1979 (the "Bonds") for the purpose of financing the Below Market Interest Rate Program (the "BMIR Program" ) ; and (b) The staff of the Department of Planning and Economic Development, Housing Division, has proposed that certain Bond proceeds be retained in the Mortgage Loan Fund for the purpose of making mortgage loans with respect to real properties located in Redevelopment Areas within the City; and (c) The Council has been advised that retention of the funds for the purposes of making Mortgage Loans will not lower the rating originally given the Bonds by Moody' s Investors Service, Inc. , and that retention of the funds for the purposes of making mortgage loans is permitted and authorized by Chapter COUNCILMEN Yeas Nays Requestgd by Department of: Hunt Levine (n Favor Maddox McMahon B snowaiter __ Against Y Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date — Certified Passed by Council Secretary BY By —_ Approved by ;Vlayor: Date _ Approved by Mayor for Submission to Council By _ — BY . �►���� `4}, � r t: e., 26U, Laws of Minnesota for 1975, Chapter 72 Saint Paul, Minnesota, Administrative Code, and by the Indenture of Trust, dated as April 1, 1979, as supplemented, entered into between the City and First Trust Company of Saint Paul, as trustee (the "Trustee" ) , pursuant to which the Bonds were issued. NOW, THEREFORE, be it resolved by the City Council of the City of Saint Paul as follows: 1. The Second Supplemental Indenture of Trust, by and between the City and the Trustee dated as of July 1, 1981, has been submitted to the Council for approval. 2. It is hereby found, determined and declared that retention of funds in the Mortgage Loan Fund for the purpose of making Mortgage Loans on the terms and conditions set forth in the Second Supplemental Indenture of Trust, will further the purposes of the BMIR Program by: a. Promoting the public welfare by maintaining, providing and preserving an adequate housing stock within the City; b. Rehabilitating and improving various blighted residential areas and preventing or slowing the development of blighted areas; and c. Making available mortgage credit for new construction, and by making available mortgage credit for would be purchasers of housing units upon terms and conditions not otherwise affordable to such would be purchasers upon the terms and conditions available in the private mortgage credit market. 3. It is further found, determined and declared that: a. Retention of funds in the Mortgage Loan Fund until April 1, 1982 is consistent with, and in furtherance of, the provisions of Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462A, and Chapter 72, Saint Paul, Minnesota, Administrative Code. WHITE - CITY CLERK PINK - FINANCE TT CANAF*Y - DEPA G I T Y O F S A I N T �A 11 L COURCll ����� BLUE - MAY File N O. � '� �• �% • ouncil Resolution Presented By Referred To Committee: Date Out of Committee By Date b. Retention of funds in the Mortgage Loan Fund until April 1, 1982 will not diminish or reduce the right of the Holders of the Bonds to the payment of principal, premium, if any, and interest on the Bonds. 4. Subject to the approval of the City Attorney, the form of the Second Supplemental Indenture of Trust is hereby approved. The Second Supplemental Indenture of Trust is directed to be executed or accepted in the name and on behalf of the City by the Mayor, Director, Department of Planning and Economic Development, Director, Department of Finance and Management Services and the City Clerk, as appropriate, upon execution thereof by the Trustee. Copies of all the documents necessary to the transactions therein described shall be delivered, filed and recorded as provided therein. 5. The Mayor and City Clerk and other officers of the City are authorized and directed to prepare and furnish to Bond Counsel, the Trustee, and other parties as approved by the City Attorney, when issued, certified copies of all proceedings and records of the City relating to the documents described in paragraph 1 hereof, and such other affidavits and certificates as may be required to show the facts relating to such documents as such facts appear from the books and records in said officers' custody and control or otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements made by the City and contained therein. COUNCILMEN Requestgd by Department of: Yeas Nays --.. Hunt i��� Levine In Favor Maddox � McMahon B snowa�ter _ Against Y Tedesco �Ison Adopted by Council: Date �� 8 198t Form Approve by Ci tto e < Certif d a • d by Counc� r BY gy. Appro y vor. Da EP � � �'v� Appr by Mayor for S b io to C~ouncii gy _ B UB�isH�o S E P 19 �9�d ' - ..pMi4�...! � ti - .�BR�IGGS w�D MORGAN -2- October'. 3�� �.981 Ms: Dee Zegan 2. The second question involved in this situation is � -�th�ther the mortgagor has violated the representations as to residency contained in the original Mortgagor's Certificate. Your letter does not give us the facts on which to give you . guidance on that point. Under the BMIR and BMHR programs, your power and that of the Servicer to refuse to consent to assumptions is somewhat limited. You should refer to our letter of October 8 , 1981 (addressed to Fay, among others) for our conclusions on that . point. The critical question in the situation you posed is ` whether :the mortgage loan with respect to the second unit is dated before May 9, 1981, or after that date. If the loan closed prior to May 9, 1981��r��tti+e ca� �e do�e,. ��# the loan-� ._�s+�~'��ter i►�ay 9, 1981, the F�Terv�.cer shoui� �.nsist that s `� E �- �tqption �qreeiaent b� �ntered �.ntfl and a credit in- _.. _ .r �'� . .� - ak`3". . . .'.. . �. - ��' . '� :don�:':�for �rhir.�i t�+e` Se����� �ay charqe a 1$ , .� If it appears that the assumer is not creditworthy, remediai action can be taken. Please let me know if you have any questions. �v-P.e � � ������� Yours very truly, � �� ��� /�. � r�z..�. �=-- ' a�� � �� �'� Richard H. Martin � ���� �S. _ � .�t� tit/1r��'3'��,01 . _ -- _ -- � 11/6�81 Martin averred this applies to all Minnesota ]oans ; not �u5t tp BMIRS. Dee ������ _.,,,__ r. � :rs^r..,s�r�-i�••wr-r�xc?'+'a��ratwt"�ae+eC'.'!�r!°'.+..9«:,±rrr.a."'.�x!�...;..�� �o--.�.�-:.--,,-?-°s=-x� - . . _._ . ; '- *•,. s . . ..... .. : ... . ,. . �:; �.n..�.: m7..�-R�^ .-a-..� -�-<c. � . ......, y..........