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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />RESOLUTION NO. R-46-96 <br />RESOLUTION OF THE CITY COUNCIL FOR THE CITY <br />OF COLTON RATIFYING AND VALIDATING <br />ALLOCATION OF FUNDS TO THE GENERAL FUND IN <br />RETURN FOR FINANCIAL ASSISTANCE IN THE <br />DEFEASANCE OF THE 1984 REDEVELOPMENT AGENCY <br />SINGLE FAMILY MORTGAGE REVENUE BOND ISSUE <br />WHEREAS, on November 22, 1993, the Redevelopment Agency Board approved the <br />defeasance of the 1984 Single -Family Mortgage Revenue Bonds (the "Defeasance"); and <br />WHEREAS, ordinarily in a defeasance of bonds, investment banking firms buy-out the <br />equity issuer of bonds such as those involved in the Defeasance and then market the bonds <br />independently for a profit; and <br />WHEREAS, it was determined by the Executive Director and the City Treasurer, that <br />the City Treasurer had sufficient financial investment expertise to be able to assist the <br />Redevelopment Agency in the private sale of the underlying single-family mortgages, and that <br />by using the City Treasurer, a general fund employee, to effect this defeasance instead of a <br />mortgage banker, the Redevelopment Agency, mortgagees and the City could recover <br />substantially more from the transaction; and <br />WHEREAS, it was understood and agreed at the time, that the City Treasurer would <br />contribute his time and expertise to the transaction and that upon completion of the Defeasance, <br />the Redevelopment Agency would receive all proceeds up to a maximum of $500,000, the <br />mortgagees would receive proportionate shares of any funds realized in excess of 100% of the <br />value of the loans sold, and the City would receive as compensation for the use of the City <br />Treasurer and his staff, any sums remaining; and <br />