Resolution No. 3993RESOLUTION NO. 3993
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AUTHORIZING THE ISSUANCE OF $7,595,000 AGGREGATE PRINCIPAL
AMOUNT OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS,
SERIES 1991-A, AND $810,000 AGGREGATE PRINCIPAL AMOUNT OF
SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE REFUNDING BONDS,
SERIES 1991-B, OF THE CITY OF CYPRESS, ORANGE COUNTY,
CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN
DOCUMENTS IN CONNECTION THEREWITH, CONFIRMING THE SALE
THEREOF AND RELATED MATTERS.
WHEREAS, the City of Cypress, Orange County, California, a political
subdivision and a charter city, duly organized and validly existing under the Constitution
and the laws of the State of California (the "Issuer"), has, pursuant to the Constitution
and the laws of the State of California, and particularly its charter and Ordinance
No. 650 duly adopted by the City Council of the Issuer on November 26, 1979, as supple-
mented and amended, and a resolution duly adopted by the City Council of the Issuer on
January 14, 1980 (the "Prior Proceedings"), developed a program with certain lending
institutions (together with their successors in interest, the 'Lending Institutions") for the
origination by the Lending Institutions of mortgage loans to finance residential real
property owned by persons of low and moderate income within the City of Cypress,
California, which mortgage loans are serviced by the Lending Institutions; and
WHEREAS, the Issuer provided for the financing of the making of the
residential mortgage loans by the sale and issuance of its Single Family Residential
Mortgage Revenue Bonds, Issue of 1980 (the "Prior Bonds"), such Prior Bonds being
secured by the Prior Proceedings, and, except to the extent payable from proceeds of the
Prior Bonds, certain reserve funds, certain insurance proceeds or moneys from the
investment thereof, to be payable solely from the revenues and receipts and other
amounts received by the Issuer from said mortgage loans; and
WHEREAS, it is now considered desirable and in the public interest for the
Issuer to issue its revenue bonds for the purpose of refunding the Prior Bonds; and
WHEREAS, the Constitution and the laws of the State of California, and
particularly the charter of the Issuer and Chapter 3 of Part 1 of Division 2 of Title 5 of
the Government Code of the State of California, as supplemented and amended (the
"Act"), authorizes any city, including any charter city, to issue its revenue bonds for the
purpose of refunding, in whole or in part at any time, bonds theretofore issued by such
city pursuant to the Constitution or laws of the State of California to finance the
origination or acquisition of mortgage loans made to finance residential real property
owned by persons of low and moderate income; and
WHEREAS, pursuant to the Constitution and the laws of the State of
California, and particularly the Act, the Issuer has now determined to issue its revenue
bonds to refund the Prior Bonds; and
WHEREAS, it is necessary and desirable in connection with the issuance of
$7,595,000 aggregate principal amount of Single Family Residential Mortgage Revenue
Refunding Bonds, Series 1991-A and $810,000 aggregate principal amount of Single
Family Residential Mortgage Revenue Refunding Bonds, Series 1991-B, of the Issuer (the
"Bonds") that a Restated Servicing Agreement dated as of September 1, 1991 (the
"Agreement") be executed and delivered by and among the Issuer Security Pacific
National Bank, as Trustee (the 'Trustee"), and the Lending Institutions; and
WHEREAS, it is necessary and desirable in connection with the issuance of
the Bonds that a Trust Indenture dated as of September 1, 1991 (the 'Indenture") be exe-
cuted and delivered by and between the Issuer and the Trustee; and
WHEREAS, it is necessary and desirable in connection with the issuance of
the Bonds and the refunding of the Prior Bonds that an Escrow Agreement dated as of
September 1, 1991 (the "Escrow Agreement") be executed and delivered by and between
the Issuer and Security Pacific National Bank, as Escrow Agent (the "Escrow Agent"); and
WHEREAS, Whipple, Kinsell & Co., Inc., Stifel, Nicolaus h Company
Incorporated, and Meridian Capital Markets, Inc. (the "Underwriters") have submitted to
the Issuer a form of Bond Purchase Agreement (the "Purchase Contract"), setting forth
the Underwriters' proposal to purchase the Bonds; and
WHEREAS, in connection with the offering and sale of the Bonds a Prelimi-
nary Official Statement (the "Preliminary Official Statement") and an Official Statement
(the "Official Statement") have been or will be prepared for distribution to prospective
purchasers of the Bonds; and
WHEREAS, copies of the Agreement, the Indenture, the Escrow Agree-
ment, the Purchase Contract and the Preliminary Official Statement have been pre-
sented to and are before this meeting;
NOW THEREFORE, Be It Resolved by the City Council of the City of
Cypress, Orange County, California, as follows:
Section 1. That it is the finding and declaration of the Issuer that the
refunding of the Prior Bonds through the issuance of the Bonds is advantageous to the
Issuer and therefore serves a valid public purpose; that this authorizing resolution is
adopted pursuant to the Act; and that the words and terms as used in this authorizing
resolution shall have the meanings set forth in the Indenture and in the Purchase
Contract unless the context clearly indicates another or different meaning or intent.
Section 2. That the form, terms and provisions of the proposed Agreement
be, and they are hereby, in all respects approved; that the Mayor of the Issuer be, and is
hereby, authorized, empowered and directed to execute, and the City Clerk of the Issuer
be, and is hereby, authorized, empowered and directed to attest and to affix the official
seal of the Issuer to, the Agreement in the name and on behalf of the Issuer, and
thereupon to cause the Agreement to be delivered to the Trustee and the Lending
Institutions; that the Agreement is to be in substantially the form presented to and
before this meeting and hereby approved or with such changes therein as shall be
approved by Bond Counsel, Counsel to the Issuer and the officer of the Issuer executing
the Agreement, his execution thereof to constitute conclusive evidence of his approval of
any and all changes or revisions therein from the form of Agreement before this meeting;
that from and after the execution and delivery of the Agreement, the officers, officials,
agents and employees of the Issuer are hereby authorized, empowered and directed to do
all such acts and things and to execute all such documents as may be necessary to carry
out and comply with the provisions of the Agreement as executed; and that the
Agreement shall constitute and is hereby made a part of this authorizing resolution and
copies of the Agreement shall be placed in the official records of the Issuer and shall be
available for public inspection at the office of the City Clerk of the Issuer
Section 3. That the form, terms and provisions of the proposed Indenture
be, and they are hereby, in all respects approved; that the Mayor of the Issuer be, and is
hereby, authorized, empowered and directed to execute, and the City Clerk of the Issuer
be, and is hereby, authorized, empowered and directed to attest and to affix the official
seal of the Issuer to, the Indenture in the name and on behalf of the Issuer and thereupon
to cause the Indenture to be delivered to the Trustee, and the Indenture shall constitute a
lien for the security of the Bonds issued under the Indenture upon the trust estate des-
cribed therein; that the Indenture is to be in substantially the form presented to and
before this meeting and hereby approved, or with such changes therein as shall be
approved by Bond Counsel, Counsel to the Issuer and the officer of the Issuer executing
the Indenture, his execution thereof to constitute conclusive evidence of his approval of
any and all changes or revisions therein from the form of Indenture before this meeting;
that from and after the execution and delivery of the Indenture, the officers, officials,
agents and employees of the Issuer are hereby authorized, empowered and directed to do
all such acts and things and to execute all such documents as may be necessary to carry
out and comply with the provisions of the Indenture as executed; and that the Indenture
shall constitute and is hereby made a part of this authorizing resolution and a copy of the
Indenture shall be placed in the official records of the Issuer and shall be available for
public inspection at the office of the City Clerk of the Issuer
Section 4. That the form, terms and provisions of the proposed Escrow
Agreement be, and they are hereby, in all respects approved; that the Mayor of the Issuer
be, and is hereby, authorized, empowered and directed to execute, and the City Clerk of
the Issuer be, and is hereby, authorized, empowered and directed to attest and to affix
the official seal of the Issuer to, the Escrow Agreement in the name and on behalf of the
Issuer, and thereupon to cause the Escrow Agreement to be delivered to the Escrow
Agent; that the Escrow Agreement is to be in substantially the form presented to and
2-
r
before this meeting and hereby approved, or with such changes therein as shall be
approved by Bond Counsel, Counsel to the Issuer of the officer of the Issuer executing
the Escrow Agreement, his execution thereof to constitute conclusive evidence of his
approval of any and all changes or revisions therein from the form of Escrow Agreement
before this meeting; that from and after the execution and delivery of the Escrow
Agreement. the officers, officials, agents and employees of the Issuer are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the
Escrow Agreement as executed; and that the Escrow Agreement shall constitute and is
hereby made a part of this authorizing resolution and a copy of the Escrow Agreement
shall be placed in the official records of the Issuer and shall be available for public
inspection at the office of the City Clerk of the Issuer
Section 5. That the Mayor and the City Clerk of the Issuer be, and are
hereby. authorized, empowered and directed to cause to be prepared an issue of
$8,405,000 aggregate principal amount of the Bonds of the Issuer bearing interest at the
rates per annum, maturing, subject to redemption prior to maturity, in such form and
having the other terms and provisions specified in the Indenture (as executed and deliv-
ered). The Bonds shall be executed in the name of the Issuer with the manual or facsim-
ile signature of the Mayor of the Issuer and attested by the manual or facsimile signature
of the City Clerk of the Issuer, and the official seal of the Issuer may be affixed thereto
or imprinted thereon, as provided in the Indenture The Mayor or the City Clerk of the
Issuer shall cause the Bonds, as so executed, to be delivered to the Trustee for
authentication.
Section 6. That the form of the Bonds submitted to this meeting, subject
to appropriate insertion and revision in order to comply with the provisions of the Inden-
ture be and the same are hereby, approved, and when the Bonds shall be executed on
behalf of the Issuer in the manner contemplated by the Indenture and this authorizing
ordinance in the aggregate principal amount of $8,405,000, they shall represent the
approved form of the Bonds of the Issuer
Section 7 That the Mayor or the City Clerk of the Issuer be, and is hereby,
authorized, empowered and directed to issue and sell to the Underwriters $8,405,000
aggregate principal amount of the Bonds at a price of 100% of the par amount thereof
plus accrued interest to the date of delivery; that the form, terms and provisions of the
proposed Purchase Contract be, and they are hereby, in all respects approved; that the
Mayor of the Issuer be, and is hereby, authorized, empowered and directed to execute
and thereupon to cause the Purchase Contract to be delivered to the Underwriters; that
the Purchase Contract is to be in substantially the form presented to and before this
meeting and hereby approved, or with such changes therein as shall be approved by the
officer of the Issuer executing the Purchase Contract, his execution thereof to constitute
conclusive evidence of his approval of any and all changes or revisions therein from the
form of Purchase Contract before this meeting; that from and after the execution and
delivery of the Purchase Contract, the officers, officials, agents and employees of the
Issuer are hereby authorized, empowered and directed to do all such acts and things and
to execute all such documents as may be necessary to carry out and comply with the
provisions of the Purchase Contract as executed; and that the Purchase Contract shall
constitute and is hereby made a part of this authorizing resolution and a copy of the
Purchase Contract shall be placed in the official records of the Issuer and shall be
available for public inspection at the principal office of the Issuer
Section 8. That the use of the Preliminary Official Statement dated
September 16, 1991, is hereby ratified, confirmed and approved; that the form, terms and
provisions of the Official Statement are to be in substantially the same form as the
Preliminary Official Statement presented to and before this meeting and hereby
approved, or with such changes therein as shall be approved by the officer of the Issuer
executing the Official Statement, his execution thereof to constitute conclusive evidence
of his approval of any and all changes or revisions therein; and that the Mayor of the
Issuer be, and is hereby, authorized, empowered and directed to execute the Official
Statement and cause the same to be delivered to the Underwriters.
Section 9. That the Mayor, the City Clerk, the City Manager, the Finance
Director and the proper officers, officials, agents and employees of the Issuer are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents and certificates, including without limitation a Tax Exemption Certificate
and Agreement, as may be necessary to carry out and comply with the provisions of the
Agreement, the Indenture, the Escrow Agreement, the Purchase Contract, the
3-
n
Prel'imina'ry Official Statement, the Official Statement and the Bonds, as executed, and
to further the purposes and intent of this authorizing resolution, including the preamble
hereto.
Section 10. That all acts of the officers, officials, agents and employees of
the Issuer which are in conformity with the purposes and intent of this authorizing
resolution and in furtherance of the issuance and sale of the Bonds and the refunding of
the Prior Bonds be, and the same hereby are, in alt respects, approved and confirmed.
Section 11. That the appointment of Security Pacific National Bank,
Los Angeles, California, as Escrow Agent under the Escrow Agreement and as Trustee,
paying agent and bond registrar under the Indenture, is hereby authorized, approved and
confirmed.
Section 12. That after the Bonds are issued, this authorizing resolution
shall be and remain irrepealable until the Bonds and the interest thereon shall have been
fully paid, cancelled and discharged.
Section 13. That the provisions of this authorizing resolution are hereby
declared to be separable, and if any section, phrase or provision of this authorizing
resolution shall for any reason be declared to be Invalid, such declaration shall not affect
the validity of the remainder of the sections, phrases and provisions of this authorizing
resolution.
Section 14. That all ordinances, resolutions and orders, or parts thereof, in
conflict with the provisions of this authorizing resolution are, to the extent of such
conflict, hereby superseded; and that this authorizing resolution shall be in full force and
effect upon its adoption and approval as provided by law.
PASSED AND AIX)PTED by the City Council of the City of Cypress at a regular
meeting held m the 23rd day of September 1991.
ATTEST:
CI1Y reCT1Y OF/C .ss
STATE OF CALIFORNIA ) SS
CCUN1Y OF CRAEGE )
OF OF CYPRYPR
MM4YQ2 S_
fRS
I, CARRELL ESSEX, City Cleric of the City of Cypress, CO HEREBY CERTTEY that the
foregoing Resolution alas duly adopted at a regular meeting of the said City Council held on the
23rd day of September 1991; by the following roll call vote:
AYES: 4 COUNCIL lm 1BflS: Kerry Nicholson, Partin and Boman
NOES: 0 COUNCIL. MEMBERS: None
ABSENT: 0 CCUNCTL MEMBERS. None
ABSTAINED: 1 CCUNCIL MEMBERS: Age
‘110.dialiCiTY4 CiNtFSS