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AHA-1998-002RESOLUTION NO. AHA98-2 RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY AUTHORIZING TI-IE EXECUTION AND DELIVERY OF A FIRST SUPPLEMENTAL INDENTURE OF TRUST, A FIRST AMENDMENT TO LOAN AGREEMENT, A FIRST AMENDMENT TO AMENDED AND RESTATED REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION WITH SUBSTITUTION OF CREDIT SUPPORT FOR THE AUq~ORITY'S $8,485,000 VARIABLE RATE DEMAND MULTIFAMILY HOUSING REFUNDING REVENUE BONDS (HERITAGE VILLAGE APARTMENTS), 1992 SERIES A. WHEREAS, the Anaheim Housing Authority (the "Authority") has previously issued its $8,485,000 Variable Rate Demand Multifamily Housing Refunding Revenue Bonds (Heritage Village Apartments), 1992 Series A (the "Bonds") to provide financing for a multifamily residential rental project known as "Heritage Village Apartments" (the "Project") owned by Calmark Heritage Park 1/ Limited Partnership (formerly Shearson/Calmark Heritage Park 1I, Ltd.), a California limited partnership (the "Developer"), pursuant to the provisions of an Indenture of Trust dated as of November 1, 1992 (the "Indenture") between the Authority and Security Pacific National Trust Company (New York), the predecessor trustee under the Indenture to First Trust of New York, N.A., as Trustee (the "Trustee"), a Loan Agreement dated as of November 1, 1992 (the "Loan Agreement") among the Authority, the Trustee and the Developer, and an Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants dated as of November 1, 1992 (the "Regulatory Agreement") among the Authority, the Trustee and the Developer; and WHEREAS, the Developer desires to release the current standby letter of credit providing credit support for the Bonds, extend the term of the existing letter of credit provided by Wells Fargo Bank, N.A. (the "Credit Bank") and have the Bonds secured solely by the existing letter of credit, which action will cause a reduction in the current long-term rating on the Bonds by Moody's Investors Service from Aa2 to Aa3 and a mandatory tender of the Bonds as provided by the Indenture; and WHEREAS, in connection with the foregoing, the Developer and the Credit Bank have requested that certain amendments be made to the Indenture and the Loan Agreement which will cause the Bonds to be reissued for federal income tax purposes; WHEREAS, the Regulatory Agreement is being amended to clarify an ambiguous provision; NOW, THEREFORE, THE ANAHEIM HOUSING AUTHORITY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: 1. The above recitals, and each of them, are true and correct. 2. The proposed forms of the First Supplemental Indenture of Trust, the First Amendment to Loan Agreement and the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants presented at this meeting are hereby approved. The Executive Director and the Secretary of the Authority are hereby authorized and directed, for m~d in the name of the Authority, to execute and