1990 AGN MAR 06 I07 - Laserfiche WebLink

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LAW OFFICES OF BEST, BEST & KRIEGER MEMORANDUM March 1, 1990 TO: MAYOR, CITY COUNCIL, CITY MANAGER AND CITY ATTORNEY FROM: BOND COUNSEL RE: CITY OF COLTON VARIABLE RATE MULTIFAMILY MORTGAGE REVENUE BONDS (FIRST NATIONWIDE SAVINGS PROGRAM) 1985 SERIES A In 1985 the City issued its Variable Rate Multi- family Mortgage Revenue Bonds (First Nationwide Savings Programs) 1985 Series A (the "Bonds") in order to provide tax-exempt financing for the Meadow Lane Apartments proj- ect. The interest rate on the Bonds is a variable rate which is established weekly by a Remarketing Agent appointed by the Trustee and the City. Until very recently, Drexel Burnham Lambert Incorporated was acting in the capacity as Remarketing Agent for the Bonds. The owner of the project has informed us that Drexel Burnham Lambert is no longer able to act as Remarketing Agent and requests that the City appoint Pacific Securities, Incorporated as Remarketing Agent for the Bonds. Included with this memorandum is a Second Amended and Restated Remarketing Agreement which appoints Pacific Securities as Remarketing Agent for the Bonds. The attached Resolution approves this amended remarketing agreement and also appoints Pacific Securities as Indexing Agent for the Bonds under the Indenture pursuant to which the Bonds were issued. Finally, in order for Pacific Securities to act as Remarketing Agent for the Bonds, it is necessary to amend the provisions in the Indenture which establish the qualifi- cations for the Remarketing Agent. The attached Resolution approves a First Supplemental Indenture which will permit Pacific Securities to qualify as Remarketing Agent. This amendment to the Indenture will not become effective until the lending institution and insurance company which guaran- tee the Bonds and the project owner have consented to the change. In addition, we will be requiring a letter from Standard & Poor's Corporation indicating that the change will not have an adverse effect on the rating of the Bonds. We would recommend adoption of the attached Resolu- tion. John R. Rottschaefer jrr0590