Res85 10047 - Laserfiche WebLink

Browse Search

WHEREAS, to further secure the payment of the Bonds, as provided by the Bond Purchase Agreement the Developer proposes to issue its Promissory Note (the "Note") to the City, for assignment by the City to the Trustee, and to cause Continental Casualty Company (the "Surety") to issue to the Trustee Surety's Surety Bond (the "Surety Bond") in such amount and payable at such times as will insure the payment of the interest on and principal of the Bonds as such come due through October 1, 1995, and will insure payment of the purchase price of the Bonds on such date, pursuant to a Reimbursement Agreement (the "Reimbursement Agreement") between the Developer and the Surety; WHEREAS, as a condition to the issuance of the Surety Bond, the Surety requires that the City enter into an Intercreditor Agreement with it and the Trustee (the "Intercreditor Agreement") relating to the exercise of rights under certain agreements and other documents and examination by the Surety of certain information. WHEREAS, as additional security for the obligations of the Developer under the Loan Agreement, the Developer will give to the City a First Deed of Trust, Assignment of Rents and Security Agreement (Construction Trust Deed) (the "First Deed of Trust"), which First Deed' of Trust, together with the Note and all rights (with certain exceptions therein specified) of the City under the Loan Agreement together with payments to be received by or on behalf of the City under any of such three instruments, as well as certain other property, are proposed by the Indenture to be pledged and assigned, and a security interest therein granted, to the Trustee, as security for the Bonds; WHEREAS, the City has stated its intention to undertake the financing of the Project and has determined that the financing of the Project is in accord with the purposes and requirements of the Act by resolution of intention duly adopted on December 10, 1984; WHEREAS, subsequent to the resolution of intention, as amended, a notice of public hearing on approval of the provision of financing was published in the Redwood City Almanac on May 2, 1985 which notice stated that Redwood Shores Apartment Associates, Ltd., a California limited partnership, designee of Paragon Group Inc., would be the initial owner, operator or manager of the Project, the estimated maximum financing to be provided and a brief summary of the Project, and of the time, not less than 14 days thence, and place of a public hearing to be held by the City Council on the financing of the acquisition, construction and equipping of the Project, and at the appointed time and place the public hearing was held and thereafter, on June la, 1985, the City approved the Project and the financing of the Project; MFH0072.RWC/7 -3- 10/23/85