HomeMy WebLinkAbout02/20/1990, A-1 - REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR AN URGENCY RESOLUTION TO PERM MEETING DATE:
city of San tuts OBISpo 2-20-90
COUNCIL AGENREPORT ITEMNUA 1
FROM: Jeffrey G. Jorgensen, City Attorney�/J`/�
SUBJECT: Request from the Housing Authority of the
City of San Luis Obispo for an urgency resolution to
permit the permanent mortgage financing for a 20 unit low
and moderate income housing development at 4035
Poinsettia St.
CAO RECOMMENDATION:
Adopt resolution of the San Luis Obispo City Council
authorizing the City to execute documents necessary to
facilitate funding from California Community Reinvestment
Corporation to Edna-lslayl Housing Associates for low-
moderate income housing.
a
BACKGROUND:
Urgency Item: This matter comes to you at the urgent request of
the Housing Authority as an item not regularly scheduled on the
agenda. The Council may hear. this matter even though it is not on
the agenda, pursuant to the authority of Government Code 5
54954.2 (b) (2) ". . . upon a determination by a two-thirds vote (4
votes] of the legislative body, or if less than two-thirds of the
members are present, a unanimous vote of those members present,
that the need to take action arose subsequent to the agenda being
posted. . . " The request of the Housing Authority meets the criteria
of the Government Code, should the Council wish to proceed.
DISCUSSION:
Because of the last minute nature of this request, staff has not
had an opportunity to prepare as thorough an agenda report as would
normally be desirable. However, a letter from the Housing
Authority dated February 19, 1990, with their request, is attached
for your information. In summary, adoption of the requested
resolution will allow Edna-Islay Housing Associates to obtain
permanent financing for the 20 unit low and moderate income housing
development at 4035 Poinsettia Street from the California Community
Reinvestment Corporation. This will carry out the purposes of the
Community Development Agreement which the City executed on May 18,
1988. I have reviewed the proposed documents and find them
acceptable in form. The.-2roposed. financing and loan agreements
will not significantly jeopardize the City's. interests. They will
facilitate the provision of .low and moderate income housing in the
community.
FINANCIAL IMPACT: R E C E' V F r)
No significant financial impact. rEb 201990
(ucaw
SANLsOBV-*0 C:A
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OF "M CITY OF SAN LUIS _0BISPO
487 Leff Street P.O.Box 636 • SAn p,CA 9$m • (806)543-4479
Esecudve Disettor,Secretary
George I Mian February 19, 1990
The Honorable Mayor Ron Dunin
and City Council Members
City of San Luis Obispo
P.O. .Box 8100
San Luis Obispo, CA 93403-8100
Dear Mayor Dunin and Council:
This is written to ask your suppofF of an urgency resolution which will permit
the immediate mortgage financing of our Poinsettia Street development. If the
urgency resolution is not adopted our non-profit corporation, and hence the
community, stands to lose many tens of thousands of dollars in added financial
costa.
Please permit me to explain through a brief narrative.
CIn 1987 the City and Housing Authority worked together to secure a Community
Development Block Grant which permitted the Poinsettia Street site in the
Edna-Islay to be acquired. In researching development options the Housing
Authority learned of the tax-credits provided via the Internal Revenue Service
Act of 1986. Thus a non-profit corporation, Edna-Islay Housing Corporation, was
established. That Corporation assumed the Housing Authority's interest in the
Poinsettia Street site and a Housing and Community Development Agreement was
signed by the City and Corporation on May 18, 1988. Key provisions in that
Agreement were the purchase of the site from the City by the Corporation, a
reversion of title clause which provides that the property reverts back to the
City after a term of fifty years, and a provision that calls for the express
prior written approval of the City Council before a sale, transfer or conveyance
of the project can be accomplished by the Corporation. The latter is the clause
that is producing today's problems as you will see later.
To secure the tax-credits the Corporation was required to establish a Limited
Partnership known as Edna-Islay Housing Associates. That Partnership includes
Edna-Islay Housing Corporation as the general partner and 36 limited partners
whose only role in the development is to provide essential funding. In return
the limited partners receive Federal and State tax credits. The General
Partner, Edna-Islay Housing Corporation, is responsible for the management of
the business.
Edna-Islay Housing Associates has raised over $800,000 in funds from limited
partners. Those funds assisted. in the development of the 20 units of low and
moderate income housing which have occupied the site for the past thirteen
months.
roa,
OPPOIRUIIRY
m
The. Associates have debt at this time of approximately $450,000, $340,000 in
seed money loaned to them by the Housing Authority and $110,000 in a
construction loan provided by First Bank of San Luis Obispo. With interest rates
high the Corporation was awaiting a decline in rates before permanently
C financing the development. Late in 1989 rates provided by the California
Community Reinvestment Corporation declined. The Corporation is a consortium of
over 50 California banks whose sole purpose is to provide financing for low and
moderate income housing. The Associates applied for permanent financing of
$450,000 at a very favorable rate of 9.39% on 'a fixed rate 30-year loan. The
loan will permit reimbursement to the Housing Authority and a pay back of the
construction loan. Processing of that loan began and that's when our troubles
began.
California Community Reinvestment Corporation is a new corporation; our loan
will be the first they have done in the state. They do not have their own
attorney but are securing services from Brobeck, Phleger & Harrison of San
Francisco, Los Angeles, San Diego, Newport Beach and Palo Alto. Mistakes have
been made, as the City Attorney was not involved in the process at an early
stage by the attorney from Brobeck, Phleger & Harrison.
The City's role is pivotal. As per the Community Development Agreement cited
earlier the City Council must provide express prior written approval before a
sale, transfer or conveyance of the project can be accomplished. In this
instance what is proposed is a conveyance from Edna-Islay Housing Corporation to
Edna-Islay Housing Associates. Thus the specific documentation that the City is
asked to approve is as follows:
Estoppel Certificate Regarding Housing and Community Development
Agreement.
Subordination Agreement Regarding Regulatory Agreement.
Assignment of Interest In Regulatory Agreement.
City Attorney's Opinion Letter.
I am sure the City Attorney will counsel you that the issues at hand are not
substantial. Unfortunately the timing is critical. We will admit we made a
mistake in assuming that the attorney for California Community Reinvestment
Corporation would correspond directly with the City Attorney on this matter. And
as this is our first transaction of this type we will accept whatever blame
anyone desires to place on us. However, in a nutshell, what is needed now is
not debate as to fault but your action via adoption of the urgency resolution.
When I stated earlier that tens of thousands of dollars are at risk if this
mortgage cannot be closed within a day or two I am not exaggerating. In today's
-market CCRC, whose rate is based on the Thirty Year Treasury Bond, would. be
quoting an interest rate in excess of 10%. The total dollar difference between a
9.39% rate and a 10% rate over 30 years on a $450,000 mortgage is well in excess
of $60,000. And as you know interest rates have started back up.
Your assistance is most appreciated.
Sincerely,
George J. Moylan
for Edna-Islay
Housing Associates
RESOLUTION N0. (1990. Series)
A RESOLUTION OF THE SAN LUIS OBISPO
CITY COUNCIL AUTHORIZING THE CITY TO
TO EXECUTE DOCUMENTS NECESSARY TO FACILITATE
FUNDING FROM CALIFORNIA COMMUNITY REINVESTMENT
CORPORATION TO EDNA-ISLAY HOUSING ASSOCIATES FOR
FOR LOW-MODERATE INCOME HOUSING
WHEREAS, the City of San Luis Obispo, the Housing Authority
of the City of San Luis Obispo, and Edna-Islay Housing Corporation
have worked together to develop a 20 unit low and moderate income
housing development at 4035 Poinsettia Street pursuant to a
Community Development Agreement dated May 18, 1988, as approved by
Council Resolution No. 6328 (1987 Series) ; and ,
r
WHEREAS, that 20 unit low and moderate income housing
development has been substantially completed; and
WHEREAS,. Edna-Islay Housing Associates, a limited partnership,
was formed with Edna-Islay Housing Corporation as managing general
Partner, to take advantage of tax credits pursuant to the Internal
Revenue Service Act of 1986 and corresponding State Legislation;
and the City Council consents to the assignment of the Community
Development Agreement from Edna-Islay Housing Corporation to Edna-
Islay Housing Associates; and
WHEREAS, permanent financing is now being secured by Edna-
Islay Housing Associates from California Community Reinvestment
Corporation for the project; and
WHEREAS, California Community Reinvestment Corporation
requires the execution of certain documents, consents, and
assurances from the City of San Luis Obispo in order to provide
permanent financing;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
San Luis Obispo as follows:
SECTION 1. The Council of the City of San Luis Obispo
consents to, and authorizes and directs the Chief Administrative
Officer, Community Development Director, or any other City staff
designated by the Chief Administrative Officer, to execute any and
all appropriate legal documents necessary to consummate the
permanent financing between Edna-Islay Housing Associates and
California Community Reinvestment Corporation, including but not
limited to the following:
a. Assignment of Interest in Regulatory Agreement (Exhibit
A, attached hereto) ..
Resolution No. (1990 Series)
Page Two
b. Estoppel Certificate Regarding Housing and Community
Development Agreement (Exhibit B. attached hereto) .
C. Subordination Agreement Regarding Regulatory Agreement
(Exhibit C, attached hereto) .
SECTION 2. The Council of the City of San Luis Obispo also
hereby authorizes the City Attorney to compile and execute an
Appropriate opinion letter supporting the above action.
On motion of , seconded by
and on the following r9,11 call vote
Ayes:
Noes:
Absent:
the foregoing Resolution was passed and adopted this day of
1990.
Mayor Ron Dunin
ATTEST-
City Clerk, Pam Voges
APP OVED:
City A ministrative Officer
I fit or y
Community Dey 1 pment Director
A-1 - -�5
A
Recording Requested By
and When Recorded Mailed
To:
-Edna Islay Housing Corporation,
a California Nonprofit Public
Benefit Corporation
P. O. Box 13657
San Luis Obispo, CA, 93406
ASSIGNMENT OF INTEREST IN REGULATORY AGREEMENT
This Assignment is made and entered into this 11th day
of January, 1990, by Edna Islay Housing Corporat on, a
California Nonprofit Public Benefit Corporation ("Assignor")
to Edna Islay Housing Associates, a California Limited
Partnership ("Assignee") .
Whereas, Assignor entered into a Housing and Community
Development Agreement ("Regulatory Agreement"_) dated May 18 ,
1988 , which was recorded in the official records of San Luis
Obispo County on June 29, 1988 as Document No. 35349,
affecting the property described on the attached Exhibit A;
Whereas, Assignee is in the process of securing a loan
of $4.50, 000.00 from the California Community Reinvestment
Corporation which loan shall be 'secured by a Deed of Trust
encumbering that certain property described in Exhibit A
attached hereto;
Whereas, the. California Community Reinvestment
Corporation is requiring as a condition of its loan that
Assignor assign all of its right, title, and interest in the
"Regulatory Agreement" to Assignee;
whereas, it is to the mutual benefit of the parties
hereto that this Assignment be effectuated;
Now, therefore, for valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Assignor
hereby assigns to Assignee all of its right, title, and
interest in the "Regula.Lnry Agreement" .
Exhibit A
Assignor:
Edna Islay Housing Corporation,
a California Nonprofit Public
Benefit Corporation
By:
E Ebr R. NELSON
P sident
Assignee, hereby accepts the above Assignment of the
"Regulatory Agreement" subject to all the terms, conditions
thereof.
Edna Islay Housing Associates,
A California Limited Partnership
w�
By: Edna Islay Housing Corporation
a California Nonprofit Public
Benefit Corporation
General Partneri
. / X
S"T
R. NELSON
E
gP esident
The City of San Luis Obispo hereby consents to the
above Assignment
City of San Luis Obispo,
a Charter Municipal Corporation
By:
City Administrative Officer
By:
Community Development Officer
1 ~ 7
Borrower: Edna-Islay Housing Associates
Loan No. : 8900001
ESTOPPEL CERTIFICATE REGARDING
HOUSING AND COMMUNITY DEVELOPMENT
AGREEMENT
The undersigned ("City") hereby certifies and
represents in favor of California Community Reinvestment
Corporation, a California nonprofit public benefit corporation
("Lender") as follows:
1. City has entered into a Housing and Community
Development Agreement dated May 18 , 1988 , which was recorded on
June 29 , 1988 in San Luis Obispo County Official Records as
Document No. 35349 ("Regulatory Agreement") with Ednl-Islay
Housing Corporation, a California nonprofit public benefit
corporation ("EIHC") , with respect to the development of a 20
unit low-income housing project known as Poinsettia Street
Apartments, situated on land in the City and County of San Luis
Obispo, California, more particularly described in Exhibit. A,
attached hereto. EIHC has assigned its rights and obligations
under the Regulatory Agreement to Edna-Islay Housing Associates,
a California limited partnership ("EIHA") ;
2 . The Regulatory Agreement is in full force and
effect and has not been modified or. amended in any respect;
3 . City hereby consents to (a) EIHC's assignment of
its interest in the Regulatory Agreement to EIHA, and (b) EIHA' s
assignment of its interest in the Regulatory Agreement to Lender
as security for a loan to be made by Lender to EIHA.
4 . As of this date, to City's knowledge, none of
City, EIHC, or EIHA is in default under the Regulatory Agreement.
5. As of this date, City has not given any notice of
any default by EIHC or EIHA under the Regulatory Agreement.
6. City agrees that prior to amending, modifying or
cancelling the Regulatory Agreement, City shall give Lender
written notice of its intent to do so, at least thirty (30) days
prior to the date such event of amendment, modification or
termination is to take effect. City further agrees that Lender
shall be entitled to receive a copy of any notice of default of
EIHA given by City under the Regulatory Agreement
contemporaneously with EIHA' s receipt of the same, and that
Lender shall have the rightto cure any defaults of Owner for a
G:\P6\RAL\00000016.RAC
01/31/90-2 1
Exhibit B
period of thirty (30) days in addition to the periods afforded
EIHA under the Regulatory Agreement for the cure of same.
7 . In entering the Regulatory Agreement, City fully
complied with all federal , .state and local laws applicable
thereto, including without limitation, Article XXXIV of the
Constitution of the State of California, and California Health &
Safety Code Section 37000, et sea. , as amended.
8 . City acknowledges that Lender's address for
purposes of receiving notices to which it is entitled under the
Regulatory Agreement or this certificate is as follows:
California Community Reinvestment Corporation
P.O. Box 106039
Burbank., California 91510-0639
2800 N. Hollywood Way ,
Burbank, California 91505
Attn: Daniel B. Lopez
9 . City acknowledges that Lender is extending credit
to EIHA in reliance on matters set forth in this Certificate.
Date: '!City"
City of San Luis Obispo, a
charter municipal corporation
By:
City Administrative
Officer
By:
Community Development
Officer
[All Signatures Must Be Notarized]
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01/31/90-2 2 -
i
A -1 - 9
RECORDING REQUESTED BY:
California Community
Reinvestment Corporation
WHEN RECORDED RETURN TO:
Robert A. Crooks
Brobeck, Phleger & Harrison
One Market Plaza
Spear Street Tower
San Francisco, CA 94105
SUBORDINATION AGREEMENT
(Housing and Community Development Agreem&nt
to Deed of Trust)
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR AGREEMENT
AFFECTING THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY
THAN THE LIEN OF A SECURITY INSTRUMENT.
THIS AGREEMENT is made this
by EDNA ISLAY Housing Associatesa Cal fiylof January, 1990
partnership ("EIHA") , sted
uccessor , ornaby assignment to Edna Islay
Housing Corporation, a California nonprofit public benefit
corporation ("EIHC") (,collective) " „
San Luis Obispo, a charter municipal corporation (liCitlland the City of
favor of California Community .Reinvestment Corporationy, a'in
California nonprofit public benefit corporation �,
("Lender ) .
R E C I T A L S
1. EIHC and City entered into a
Development Agreement dated Ma Housing and Community
the Official Records of San LuislObispoBCounty on, whichaJunec29, 1 in
as Document No. 35349 ("Regulatory Agreement,,) 1988
property described on the attached Exhibit A ( affectingthe
together with all improvements now or i— 'n the future locatedyon
the property, is referred to as the "Property") . EIHA has
executed, or is about to execute, a Promissory Note secured by
Deed of Trust in the sum of Four Hundred Fifty Thousand and
no/100 Dollars ($450, 000. 00) dated of even date herewith in favor
Of Lender ("Note") evidencing a loan ("Loan") to EIHA. The Note.
is to be secured by a Deed of Trust executed by EIHC and EIHA
dated of even date herewith encumbering the Property which will
be recorded in the Official Records of the
Luis Obispo County, County Recorder of San
California ("Deed of Trustily.
0:\P8\RAC\00000013.RAC
01/31/90-G
C 1.
Exhibit C 140
A. As a condition to making the Loan secured by the Deed
of Trust, Lender requires that the Deed of Trust be
unconditionally and at all times remain a lien or charge upon the
Property, prior and superior to all rights of City under the
C' Regulatory Agreement and that City .specifically and
unconditionally subordinate the Regulatory Agreement to the lien
or charge of the Deed of Trast.
B. City and Borrower intend that the Deed of Trust shall
unconditionally be and remain at all times a lien or charge upon
the Property prior and superior to City's rights under the
Regulatory Agreement and to any estate created thereby. City has
agreed to specifically and unconditionally subordinate and
subject the Regulatory Agreement, and any estate created thereby
together with all rights and privileges or City thereunder, to
the lien and charge of the Deed of Trust in favor of Lender.
C. It is to the mutual benefit of the partiesvhereto that
Lender make the Loan to EIHA; and City is willing thi't the Deed
of Trust securing the Loan shall , when recorded, constitute a
lien or charge upon the Property which is unconditionally prior
and superior to the Regulatory Agreement and to any estate
created thereby.
NOW, THEREFORE, in consideration of the mutual benefits
accruing to the parties hereto and other valuable consideration,
the receipt and sufficiency of which consideration is hereby
acknowledged, it is hereby declared, understood and agreed as
follows:
C1. The Deed of Trust securing the Note in favor of
Lender, and any modifications, renewals or extensions thereof,
and any advances (including interest thereon) thereunder or
secured thereby, shall unconditionally be and remain at all times
a lien or charge on the Property, prior and superior to the
Regulatory Agreement, to the estate created thereby, to all
loans, grants and advances of money made pursuant thereto, and to
all rights and privileges of City thereunder, and said Regulatory
Agreement and the estate created thereby, and all loans, grants
and advances of money made pursuant thereto, together with all
rights and privileges of City thereunder, is hereby subjected,
and made subordinate, to the -lien or charge of the Deed of Trust
in favor of Lender.
2 . This Agreement shall be the whole and only
agreement between the parties hereto with regard to the
subordination of the Regulatory Agreement, and the estate created
thereby, and all loans, grants and advances of money made
pursuant thereto, together with all rights and privileges of City
thereunder, to the lien or charge of the Deed of Trust, and shall
G:\PB\RAC\00000013-RAC
01/31/90-4 2
C
supersede and cancel any prior agreements to subordinate the
Regulatory Agreement to the Deed of Trust.
O3. City declares, agrees, and acknowledges that:
a. It consents to and approves (i) all
provisions of the Note and Deed of Trust in favor of Lender,
(ii) all agreements, including but not limited to any loan
agreement or other loan or escrow agreements between Borrower and
Lender for the disbursement of the proceeds of Lender's Loan, and
City acknowledges receipt of a copy thereof, and (iii) all
modifications, alterations and amendments of the Note and Deed of
Trust in favor of Lender and all loan and other agreements
between Borrower an Lender above referred to; and
b. Lender in making disbursements pursuant to
any such agreement is under no obligation or duty to, nor has
Lender represented that it will , see to the applicatiron of such
proceeds by the person or persons to whom Lender disburses such
proceeds, and any application or use of such proceeds for
purposes other than those provided for in such agreement or
agreements shall not defeat the subordination herein made in
whole or in part; and
C. It intentionally and unconditionally waives,
relinquishes, subjects and subordinates the Regulatory Agreement,
and the estate created thereby, and all loans, grants, and
advances of money pursuant thereto, together with all rights and
privileges of City thereunder, in favor of the lien or charge
O upon the Property of the Deed of Trust and understands that in
reliance upon, and in consideration of, this waiver,
relinquishment, subjection, and subordination specific loans and
advances are being and will be made and, as part and parcel
thereof, specific monetary and other obligations are being and
will be entered into which would not be made or entered into but
for said reliance upon this waiver, relinquishment, subjection
and subordination.
d. City agrees that the provisions of Section
III.J. of the Regulatory Agreement do not and shall not apply to
(i) the Lender, (ii) any of Lender' s successors or assigns, or
(iii) any persons acquiring title to the Property through Lender
of its successors or assigns by foreclosure sale or otherwise.
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01/31/90-4 3 .
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR AGREEMENT
AFFECTING THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY
THAN THE LIEN OF A SECURITY INSTRUMENT.
CCITY OF SAN LUIS OBISPO, a
charter municipal corporation
By:
City Administrative
Officer
By:
Community Development
Officer
EDNA ISLAY HOUSING .ASSOCIATES,
a California limited
partnership
By: Edna Islay Housing
Corporation, a California
nonprofit public benefit
corporation
By:
Name:
Title:
[All Signatures Must, Be Notarized]
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01/31/90-4 4 .
G
/� -N3
S�,y
3 t �•
]EXHIBIT A
Property Description
C.�
All that real property in the City of San Luis Obispo,
County of San Luis Obispo, State of California, described as
follows:
Lot 110 as shown on the certain map entitled "Units 3 and 4 ,
Tract 929" , in the County of San Luis Obispo, State of
California, according to map recorded September 18 , 1984 in
Book 11, Page 97 of Maps.
1
�I
. ����i►IIIIIIIIII h° �i II
III city
sAn tuis oBispo
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100
February 20, 1990
California Community Reinvestment Corp.
P.O. Box 10639
Burbank CA 91510-0639
Re: $450, 000 Loan by California Community Reinvestment
Corporation to Edna-Islay Housing Associates
Ladies and Gentlemen:
This opinion is delivered to you pursuant to the Loan
Agreement dated as of `February , 1990, between Edna Islay
Housing Associates, a California limited partnership ("Borrower")
and California Community Reinvestment Corporation ("CCRC") . Unless
otherwise defined herein, the terms used in this letter shall have
the same meaning as the terms used and defined in the Loan
Agreement. I have represented the City of San Luis Obispo ("City,,)
in connection with the review and. execution of certain loan
documents to which the City is a party. I have examined such
documents and certificates and engaged in such factual and legal
research as I believed appropriate in order to be in a position to
deliver this opinion. Based upon that examination and research,
And subject to the limitations and qualifications provided herein,
I am of the opinion that:
1. The City has full authority to execute and deliver
the Subordination Agreement (Housing and Community Development
Agreement to Deed of Trust) ("Subordination Agreement") and the
Estoppel Certificate Regarding Housing and Community Development
Agreement ("Estoppel") and has the authority to enter into said
Agreements and to execute�pd. deliver all documents, notes or other
instruments executed and delivered, pursuant to or in connection
with the transaction therein. contemplated. The Estoppel and
Subordination Agreement and all other documents, notes and
instruments which have been executed and delivered by the City
pursuant to the Loan Agreement constitute or, if not yet executed
or delivered, will when so executed and delivered, constitute valid
and binding obligations of the City enforceable in accordance with
their respective terms.
2. Neither the execution nor delivery of the Estoppel
or Subordination Agreement by City or any document, instrument or
C'
California Community Reinvestment Corp.
February 20, 1990
Page Two
agreement contemplated thereby or the consummation of any of the
transactions therein contemplated, nor -the failure to give notice
to or obtain the consent, authorization or approval of any person
or entity, private or public, will in any material way conflict
with or result in any breach of any applicable law, regulation or
statute presently in effect or conflict with or constitute a
material breach or default under any material agreement of which
I am aware after due inquiry to which City is a party.
The opinion in paragraph 1 above is subject to the qualifica-
tion that (1) the enforceability of the provisions contained
therein, and the rights and remedies set forth,. in the Loan
Documents are subject to (a) bankruptcy, insolvency,
reorganization, moratorium, and other similar laws gelating to or
affecting the rights of creditors generally, and (b) general equity
principles; and (2) I express no opinion whether the loan documents
or any provision thereof will be specifically enforced. However,
the qualifications in this paragraph do not in my opinion -render
the remedies available to the. CCRC under the Loan Documents
inadequate for the practical realization of the rights and benefits
intended to be provided thereby.
This opinion is furnished to you solely for the benefit of
California Community Reinvestment Corporation and may not be relied
G' upon by or reproduced for any other person or entity without the
prior written consent of the undersigned.
Very truly yours,
4yv
G o ensen
to ey
JGJ/sw
O