HomeMy WebLinkAboutRESO 5445•
RESOLUTION NO. 5445
RESOLUTION OF THE COUNCIL OF THE CITY
AUTHORIZING A GUARANTY AGREEMENT COVERING CERTAIN
OBLIGAXIONS OF COMMUNITY HOUSING, INC.
WHEREAS, COMMUNITY HOUSING, INC .. (herein called 11Co.rporation11 )
intends to_ enter into a loan .agreen1ent .with .. SECURITY PACIFIC
NATIONAL BANK (herein called "Bank"), and BANK is willing to enter.
into such agreement 01L. the condition tha~:. the CITY OF PALO ALTO
· (herein called "City'') guarantee the p~~+ormance of CORPORATION;
and · ·
--WHEREAS, CORPORATION intends to use said loan to purchase
certa_in real property, and the improvements ·thereon, situated ip
the City of Palo Alto·,. County of Santa Clara, State of California,
for the purpose of constructing thereon _a nealth care facility:
and
WHEREAS, it is and will be to tl'le direct benefit, advantage,
and best interest of CITY that such 9uaran~y be given and such
agreement entered into in order that CORPORATION may acquire said
property for said eventual use; ·
NOW, THEREFORE, the Council of the City of Palo Alt9 hereby
RESOLVES as follows: .
SECTION 1. To induce BANK to enter into such agreement, and
in consideration t..lier.eof, the Mayor .of. t.pe City. of Palo Alto hereby
is authorized and directed, for and ip· J:.he name of CITY, to
guaranty CCRPORATION's.performance of· such agreement to BANK, as
provided in the guaranfy agreement. at~~ched nereto and by reference
incorporated herein as .though fully se"t: forth.
SECTION 2. The Controller of the City of Palo Alto hereby
is authorized and directe~ to establish. in the general fund a
loan guaranty contingent reserve for ah: amount· equal to the
principal sum of the loan: guaranteed.by· saiq agreement, said
reserve account .tc. be maintained for ~e term of lean agreement~
INTRODUCED AND PASSED: August 22, 1977
AYES: Brenner, Clay, Eyerly, Fazzino, Fletcher, Henderson, Sher, Witherspoon
/
NOES: None
ABSTENTIONS: Carey
ABSENT: None
ATTEST: . / ~" l!J.«tt I '
APPROVED: ~ ~ ~bnager
Dl'.ieCt0£0P1anninq &
Community Environment
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