ARA1993-07RESOLUTION NO. ARA 93-7
RF.~OLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE SUCH
ACTIONS AS NECESSARY TO PROTECT THE AGENCY'S
INTEREST IN CERTAIN DEEDS OF TRUST; AND ADOPTING
POLICIES AND PROCEDURES RELATED THERETO
WHEREAS, the Anaheim Redevelopment Agency ("Agency")is a California community
redevelopment agency engaged in implementation of the Alpha, River Valley and Anaheim Plaza
Redevelopment Projects; and
WHEREAS, in the course of such implementation, Agency, among other things, makes
loans secured by deeds of trust or receives deeds of trust to secure other obligations of
developers and others; and
WHEREAS, the Agency's portfolio of deeds of trust includes first deeds of trust as well
as junior deeds of trust; and
WHEREAS; from time to time the trustor under a deed of trust held by Agency defaults
on its obligation to Agency or on an obligation secured by a senior deed of trust, thereby putting
at risk Agency's junior deeds of trust; and
WHEREAS; in such situations there are a variety of actions that may be taken by the
beneficiary under a senior deed of trust, including foreclosure; by the trustor, including
banla'uptcy; and by Agency, including reinstatement of the senior deed of trust and foreclosure
of the junior deed of trust; in order to protect their respective interests, and a variety of
responses to such actions; and
WHEREAS, in these situations events can move at a pace that does not allow Agency
staff sufficient time within which to obtain from Agency authorization for a particular action or
response, the benefits of which would be clear, including without limitation, the expenditure of
funds to reinstate a senior deed of trust loan or to bid at a foreclosure sale, where such
expenditure is in good faith and for value as determined by an appraisal; and
WHEREAS, it is in the best interest of Agency to authorize the Executive Director, in
the context of a default by an obligor of Agency on an obligation secured by a deed of trust, or
in the context of a default of an obligation secured by a deed of trust senior loan Agency deed
of trust, to take such actions as the Executive Director deems reasonably necessary or desirable
to protect the interest of the Agency; and
WHEREAS, Agency staff has prepared a set of policies and procexlures to govern the
actions of the Executive Director in such contexts (the "Policies and Procedures"), a set of which
Policies and Procedures are attached to this Resolution as Exhibit "A".
NOW, THEREFORE, BE 1T RESOL~ by the Anaheim Redevelopment Agency as
follows:
1. That, subject to the conditions set forth below, the Executive Director is hereby
authorized to take such actions as the Executive Director deems reasonably necessary or
desirable to protect Agency's interest under deeds of trust held by Agency including, without
limitation:
(a) giving notice of default and such other notices as may be requirea to
conduct a foreclosure sale;
Co) expending funds to reinstate a senior deed or trust loan, to purchase a
senior deed of trust loan, or to bid at a foreclosure sale, where such expenditure is in good faith
and for value as determined by an appraisal;
conducted;
(c)
conducting a foreclosure sale, or causing a foreclosure sale to be
(d) expending such funds as are incidental to implementation by the Executive
Director of the authority herein granted.
2. That the authority of the Executive Director herein shall be subject to the
condition that the Executive Director notify Agency, orally or in writing, prior to the taking of
any action authorized hereby, of such action taken.
3. That the Policies and Procedures are hereby adopted.
of
THE FOREGOING RESOLU~ON is approved and adopted by me this 11 th
l~lay , 1993.
day
SECRETARY
ANAHEIM REDEVELOPMENT AGENCY
ANAHEIM REDEVELOPMENT AGENCY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing
Resolution No. ARA93-7 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held
on the 11th day of May, 1993, by the following vote of the members thereof:
AYES: AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency signed said Resolution
No. ARA93-7 on the 12th day of May, 1993.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 12th day of May, 1993.
SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY
(SEAL)