HomeMy WebLinkAboutResolution No. 4635 RESOLUTION NO. 4635
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
CONCURRING IN DOWNEY COMMUNITY HOSPITAL FOUNDATION DEED OF TRUST
AS SECURITY FOR LOAN TO ENLARGE HOSPITAL FACILITIES
WHEREAS, DOWNEY COMMUNITY HOSPITAL FOUNDATION ( "the Hospital ") is a
California nonprofit public benefit corporation;
WHEREAS, the Hospital proposes to borrow from the CALIFORNIA HEALTH
FACILITIES FINANCING AUTHORITY (the "Issuer ") the proceeds of the sale of
those certain $15,000,000 principal amount California Health Facilities
Authority Variable Rate Weekly Demand Revenue Bonds (Downey Community
Hospital), Series 1985A (the "Bonds ");
WHEREAS, the proceeds of the Bonds will be used to enable Hospital to
finance the construction, expansion, remodeling, renovation, furnishing,
equipping, and acquisition of its facilities located in the City of Downey,
including the reimbursement of expenditures made or refinancing indebtedness
incurred for such purposes (the "Project ");
WHEREAS, THE BANK OF TOKYO, LTD., LOS ANGELES AGENCY, a California non -
depositary agency of a Japan banking corporation has promised to issue its
Letter of Credit in the initial amount not to exceed $15,400,685 to provide
credit support of the Bonds, contingent upon Hospital's execution of a First
Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing
(Construction Trust Deed) (the "Deed of Trust ") naming THE BANK OF TOKYO,
LTD., LOS ANGELES AGENCY and FIRST INTERSTATE BANK OF CALIFORNIA (referred to
collectively herein as the "Banks ") as Beneficiaries;
WHEREAS, execution of the Deed of Trust is necessary for Hospital to
borrow the proceeds of the Bonds and participate in the Project, and the Board
of Directors of Hospital has approved such borrowing and participation and
execution by the Hospital of the Deed of Trust and other instruments pertinent
to such transaction;
WHEREAS, the security provided to the Banks pursuant to the Deed of
Trust consists, in part, of Hospital's interest in that "Lease" between the
City of Downey and the Hospital dated February 8, 1983;
WHEREAS, Paragraph 8(c) of said Lease permits the Hospital to create or
permit the creation of a Deed of Trust on the Hospital's interest in the
Lease, or any part thereof, to the extent necessary to enable the Hospital to
borrow money or otherwise finance the purchase or lease of real and personal
property at the most favorable rates and upon the most favorable terms
available;
WHEREAS, the Banks and the Issuer have requested that the City formally
approve and permit the Hospital's borrowing of the proceeds of the Bonds as
described herein; and
WHEREAS, the City Council believes that such execution and borrowing
lie in the best interests of the City of Downey;
NOW, THEREFORE, BE IT RESOLVED, as follows:
SECTION 1. The form, terms, and provisions of the Deed of Trust be,
and they are, hereby approved, and the City Council hereby consents to
its execution by the Hospital in substantially the form presented to
and considered at this meeting of the City Council, with such changes
and insertions therein as may be approved by the person executing the
same, with approval to be conclusively evidenced by his or her
execution thereof.
Resolution No. 4635
August 27, 1985
SECTION 2. The City Council hereby further approves the borrowing of
the Bond proceeds and participation in the Project by Hospital as
described in the recitals to this Resolution.
SECTION 3. The City Clerk shall certify to the adoption of this
Resolution and provide for appropriate distribution thereof.
APPROVED AND ADOPTED this 27th day of August 1985.
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Mayor
ATTEST:
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ity Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
City Council of the City of Downey at a regular meeting hereof, held on
the h da y of August by the following vote, to wit:
AYES: 4 COUNCIL MEMBERS: Santangelo, Boggs, Barb, Davila
NOES: O° COUNCIL MEMBERS:
ABSENT: l COUNCIL MEMBERS: Cormack
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City Clerk