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16/96 RESOLUTION NO. 12894 A RESOLUTION PROVIDING FOR CONSENT BY AN AUTHORIZED ISSUER REPRESENTATIVE TO SALE AND TRANSFER OF PROJECT AND AUTHORIZING RELEASE OF OWNER $28,000,000 City of Redwood City Multifamily Housing Revenue Bonds (Redwood Shores Apartments Project) Series 1985B RESOLVED, by the City Council of the City of Redwood City, California, as follows: WHEREAS, on October 30, 1985 the City issued $28,000,000 principal amount of its Multifamily Housing Revenue Bonds, Series 1985B (the "Bonds"), in order to finance a multifamily housing development identified as the Redwood Shores Apartments Project (the "Project") within the City, the owner of which is Redwood Shores Apartment Associates, Ltd., a California limited partnership (the "Owner"); WNEREAS, when the Bonds were issued, the Owner entered into a Loan Agreement with the City for the borrowing of the Bond proceeds to provide a substantial part of the financing required (the "Loan Agreement"), pursuant to which the Owner is obligated to make payment of the Bond principal and interest, and certain other amounts, subject to a limited recourse provision; WHEREAS, construction of the Project was completed in 1987 and the Project has since been operated by the Owner to provide multifamily rental housing; the Project is restricted by a Regulatory Agreement and Declaration of Restrictions (the "Regulatory Agreement") recorded when the Bonds were issued imposing certain requirements upon the Project with regard to the provision of such housing; WHEREAS, the Bonds are revenue bonds of the City payable solely out of Bond proceeds, revenues and other amounts derived under the Loan Agreement, and moneys pledged under an Indenture of Trust entered into by the City upon issuance of the Bonds (the "Indenture") with a bank trustee (the "Trustee"), and payment of the Bonds is secured by a surety bond (the "Surety Bond") issued by Continental Casualty Company (the "Surety"), and certain deeds of trust and other security agreements; WHEREAS, while the Loan Agreement provides for payment of Bond principal and interest by the Owner, pursuant to an Intercreditor Agreement among the City, the Trustee and the RC(1)Res. Prov.