November 12, 2007 (LPAC)--The following resolution was adopted on Nov. 5 by the City Council of Shively, Kentucky, a suburb of Louisville, under the title, Resolution NO. 3, ERIES 2007.

A resolution requesting the United States Congress to enact legislation to address nationwide financial problems with the home mortgages and to protect federal and state chartered banks.

WHEREAS the City Council of the City of Shively is aware that there is an ongoing problem to the residents and taxpayers of the City of Shively and to the administration of the city government from home mortgage foreclosures; and

WHEREAS the said City Council has received information that the rate of home mortgage foreclosures on a nationwide basis will continue and increase; and

WHEREAS the financial problems causing the aforesaid foreclosures and collateral financial problems created by this chain of events can be integrated as resulting in loss of homes to Shively residents and on a nationwide basis and damaging the integrity of federal and state chartered banks

NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SHIVELY:

Section 1: That the City Council of the City of Shively herewith resolves to request that Congress pass the Homeowners and Bank Protection Act of 2007 to :

(a) Establish a Federal agency to place Federal and State chartered banks under protection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages at appropriate interest rates and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial pyramid schemes that have brought the banking system to the point of bankruptcy;

(b) That Congress declare a moratorium on all home foreclosures for the duration of the transitional period, allowing families to retain their homes. Monthly payments, the equivalent of "rental payments", shall be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking system. These affordable monthly payments will be factored into new mortgages, reflecting the orderly deflating of the housing bubble, the establishment of appropriate property valuations and reduced fixed mortgage interest rates. While this may take several years to achieve, in the interim period no homeowner shall be evicted from his or her property, and the Federal and State chartered banks shall be protected so that they can resume their traditional functions, serving local communities and facilitating credit for investment in productive entities; and

(c) That Congress authorize Governors of the states to assume the administrative responsibilities for implementing the program, including the "rental" assessments to designated banks with the federal government transition.

Section 2: The City Clerk is herewith requested to provide copies of this resolution to the members of the Senate from the Commonwealth of Kentucky and the Third District Congressman from the Commonwealth of Kentucky, the Honorable John Yarmuth.

Section 3: This resolution shall take effect from and after passage and publication.

ENTERED THIS 5TH DAY OF NOVEMBER, 2007.

[Signed]

Sherry S. Conner, Mayor Becky Roberson, acting as City Clerk