HomeMy WebLinkAboutResolutions - 1979.07.12 - 123329036 June 13, 1979 Miscellaneous Resolution
EBLIC SERVICES COMMI'TEE /1
Ar' 41414PP \
edry W. got, Chairman
REGOING RESOLUTION IHER APPROVE THE F
BY: PUBLIC SERVICES COMMITTEE - Henry W. Hoot, Chairman
IN RE: COMMUNITY DEVELOPMENT HOUSING REHABILITATION SERVICING AGREEMENT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, new guidelines have been adopted which will increase the
potential for loan assistance to low income persons in improving their homes;
and,
WHEREAS, payments on loans are better managed and more appropriately
handled by a financial institution than the Community Development Division; and,
WHEREAS, officials of the Community National Bank of Pontiac have
assisted in the development of procedures and forms for the loan program and
provided information on lending requirements; and
WHEREAS, Community National Bank has branch offices in many parts of the
County; and,
WHEREAS, loan payments can be processed through an existing system of the
bank thereby making the service available at a reasonable cost.
NOW THEREFORE BE IT RESOLVED that the Chairperson of the Oakland County
Board of Commissioners is hereby authorized to sign a Servicing Agreement with
the Community National Bank, copy of which is attached hereto.
The Public Services Committee by Henry W. Hoot, Chairman, moves the
adoption of the foregoing resolution.
SERVICING AGREEMENT
THIS AGREEMENT, made this day of , 1979,
by and between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation,
having its principal place of business at 1200 North Telegraph Road, Pontiac,
Michigan, (hereinafter called "County") and COMMUNITY NATIONAL RANK OF PONTIAC,
a National Banking Association, having its principal place of business at
Pontiac, Michigan, (hereinafter called "Bank");
WITNESSETH:
WHEREAS County desires that Bank service certain loans granted by
the County under the authority of the House and Community Development Act of
1974, being Public Law 93-383; and,
WHEREAS Bank agrees to provide its services to the County in the
management and collection of said loans;
NOW, THEREFORE, in consideration of the premises, and of the under-
takings of the parties, it is hereby agreed as follows:
1. The County will submit to the Rank all information and documents
necessary for the Bank to service each loan as hereafter required in this
Agreement. Said information and documents shall include principal amount of
the loan, interest rate, term of the loan, name and address of borrowers
together with any other information or documents requested by the Bank to
service the loan.
2. The Bank will prepare its Cashiers' Checks, representing
individual loan proceeds, payable to the person(s) or corporation(s) designated
in writing by the County.
3. Prior to the preparation and release of any Cashier's Check by
the Bank, the County will deposit in a designated account at the Bank, an
amount equal to the sum of any Cashier's Check so issued. The Bank will furnish
the County a monthly statement of account balances.
4. The Bank, for each individual loan made by the County, shall
provide the borrower with a monthly loan payment coupon book. Said coupons
will show the total payment due, late charges if required by the County, and
the monthly due date. The Bank shall issue new or additional coupon books as
required during the term of the loan.
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5. The Bank will accept, during normal business hours or by mail,
current loan payments and record said payments against principal and interest
balances.' The monies collected shall be deposited in a designated depository
account maintained by the Bank for the County. All funds in said account shall
become the sole property of the County, except that the amount of any check
received by the Bank representing a loan payment, which is subsequently returned
by the drawee bank for non-payment, or reported lost or missing in the collection
process, shall be debited by the Bank against said depository account.
6. The Bank will collect a late payment charge of $3.00 for loan
payments 16 days or more past due until such time that the loan is removed from
Bank service records. Such late payments shall be credited to the County and
deposited in the designated depository account described in Paragraph 5.
7. The Bank will prepare and mail appropriate delinquent notices at
such intervals as mutually agreed upon in writing by the Bank and the County.
8. The Bank shall not waive, modify, release or consent to postponement
on the part of the borrower of any term of the loan without the written consent
of the County. The Bank may accept additional principal payments and prepayment
of total loan outstanding, unless instructed otherwise in writing by the County,
at any time during the term of the loan.
9. The Bank shall provide the County a monthly listing of all outstanding
loans. Such listing shall reflect the status of each loan, including the date of
last payment, the principal amount outstanding, and the date the next payment is
due. The Bank shall also provide the County a monthly delinquency report of
all loans delinquent 30 days or more. The Bank shall not be responsible for
any collection effort of delinquent loans other than the preparation and mailing
of delinquent notices.
10. The Bank agrees to service each such loan for the County under this
Agreement continuously, beginning with the date of commencement of such duties,
until the interest and principal is paid in full, or the loan removed from the
Bank service records as may be ordered by the County.
11. It is understood that the Bank has no vested interest in any loan
serviced for the County under this Agreement and the Bank's sole responsibility
is to service each loan in accordance within these terms and agreement.
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12. This Agreement shall remain in full force and effect until
terminated by one of the parties upon ninety (90) days written notice. In
the event of notice of termination, the Bank shall provide the County with
complete printed records detailing the status of each unpaid loan prior to
the expiration of ninety (90) days from date of notice of termination.
13. The County shall pay Bank the sum of Ten Dollars ($10.00) for
each and every loan submitted to Bank for servicing. In addition, the County
shall pay the sum of Three Dollars ($3.00) monthly for each loan account
reported to County on the monthly report provided to County pursuant to
Paragraph Nine. The County shall also reimburse Bank for the cost of any
Special forms and supplies including but not limited to coupon books and
delinquent notices, needed by the Bank to service the loan accounts described
in this Agreement.
IN WITNESS WHEREOF each party has caused its corporate seal to be
affixed hereto and this instrument to be signed in its corporate name on its
behalf by its proper officials duly authorized.
COUNTY OF OAKLAND, a Michigan COMMUNITY NATIONAL BANK OF PONTIAC,
Constitutional Corporation a National Banking Association
By: By:_
Wallace F. Gabler, Jr.
Chairperson, Oakland County
Board of Commissioners Its:
(ZURAT)
Revised May 16, 1979
#9036 July 12, 1979
Moved by Hoot supported by Price the resolution be adopted.
AYES: Moffitt, Montante, Moore, Moxiey, Murphy, Page, Patterson, Perinoff, Pernick,
Peterson, Price, Roth, Aaron, DiGiovanni, Doyon, Dunaskiss, Fortino, Gabler, Gorsline,
Hoot, Kasper, Kelly, Lewand, McConnell, McDonald. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and
having a seal, do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #9036 adopted by the Oakland County Board of
Commissioners at their meeting held on July 12, 1979
with the original record thereof now remaining in my
office, and that it is a true and correct transcript
therefrom, and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan
12th July this day of
Lynn D. Allen Clerk
By Deputy Clerk