Section 7 Housing and Community Development
Policy 7-4 AUTHORITY TO SIGN RELEASES OF MORTGAGE AND/OR LIEN ON CDBG AND HOME PROGRAM FUNDED MORTGAGES AND/OR LIENS
COUNCIL POLICY 7-4
DISTRIBUTION: Mayor and City Council
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
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
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
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
recipient(s) have satisfied all of the conditions of the loan agreements.
2. The City Attorneys 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
3. On execution of the release of mortgage or lien the City Clerk shall return
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
RESCISSION: This policy
becomes effective August 1, 2004.
JOHN P. PURCELL, JR.
July 13, 2004
(7-4, Added, 07/13/2004)