Policy 7-4 AUTHORITY TO SIGN RELEASES OF MORTGAGE AND/OR LIEN ON CDBG AND HOME PROGRAM FUNDED MORTGAGES AND/OR LIENS

Section 7 Housing and Community Development

COUNCIL POLICY 7-4

DISTRIBUTION: Mayor and City Council

All Departments

SUBJECT: Authority to sign releases of mortgage and/or lien on CDBG and HOME Program funded mortgages and/or liens.

PURPOSE: To establish a policy permitting the Mayor and City Clerk to execute releases of mortgage and/or lien in instances where the participants in the CDBG and HOME housing programs have satisfied all of the requirements of their obligations under their agreements with the city.

BACKGROUND: All loans awarded for local CDBG and HOME Program funded housing projects or activities, which involve long-term obligations by the recipient(s) or in which the loans have amortization schedules for payback, are secured by promissory notes, liens and/or mortgages between the recipient(s) and the City of Lawton. If the recipient(s) satisfies all of the conditions of the loan agreements and has made payment in full of the loan amount thereon the mortgage or lien is required to be released. In most of these cases, time is of the essence. In addition there is an Oklahoma Statutory requirement that the creditor file a release of mortgage or lien. In the event that all mortgage or lien requirements have been satisfied, the Mayor and City Clerk shall have authority to execute the releases of mortgage and/or lien documents for these activities.

POLICY/PROCEDURES: The City Council hereby authorizes the Mayor and City Clerk to execute releases of mortgage or lien documents under the following conditions:

1. The Director of Community Services Department or his designee documents that the recipient(s) have satisfied all of the conditions of the loan agreements.

2. The City Attorney’s office reviews the release(s) of mortgage and/or lien document(s) and accompanying documentation from the Community Services Department indicating that all requirements are met. The City Attorney or his designee shall then execute the release of mortgage or lien as to for and legality and shall forward all documents to the City Clerk for execution.

3. On execution of the release of mortgage or lien the City Clerk shall return all documentation to Community Services Department for filing.

4. All other requests for release of mortgages and/or liens shall be referred to the City Council for approval and authorization for the Mayor and City Clerk to execute said documents.

REFERENCES: Council Policy 7-3.

EFFECTIVE DATE/

RESCISSION: This policy becomes effective August 1, 2004.

RESPONSIBLE

DEPARTMENT: Community Services Department

_____________________

JOHN P. PURCELL, JR.

MAYOR

July 13, 2004

(7-4, Added, 07/13/2004)