January 15, 2007 (LPAC)--East Chicago, Indiana, yesterday, unanimously, passed a Homeowner and Bank Protection Act resolution.  The text of the resolution is below:

RESOLUTION 08-0001

A RESOLUTION URGING A MORATORIUM ON HOME FORECLOSURES AND CONGRESSIONAL ENACTMENT OF A HOMEOWNERS AND BANK PROTECTION ACT WHEREAS, a financial crisis involving home mortgages debt instruments and the United States banking system threatens economic stability; and
WHEREAS, the financial crisis threatens the integrity of federal and chartered banks such that consumer deposits and life savings are jeopardized; and
WHEREAS, financial investments and home ownership is the fabric of economic stability and the stability of financial institutions; and
WHEREAS, millions of Americans and thousands of Indiana residents are facing foreclosures on their homes; and WHEREAS, historically the federal government has intervened to protect financial institutions and home ownership and to provide guarantees of social and economic stability; and
WHEREAS, the quality of life in any community can be directly related to the responsiveness of government and its ability to meet the needs and expectations of its citizens; and WHEREAS, the citizens of East Chicago, understand the connection and elect local leaders with certain expectations regarding the service they will provide and the role they will play in their lives; and
WHEREAS, those elected to serve the citizens of East Chicago accept the privilege of service with the understanding of their responsibility and the expectation of the community- and WHEREAS, the accountability for the city's viability, prosperity and overall well-being lies with those elected to serve local government.
NOW THEREFORE, be it resolved that Common Council of the City of East Chicago call upon The United States Congress to take emergency action to protect homeowners by enacting a Homeowners and Banks Protection Act specifically to: 

1. Establish a federal agency to place Federal and State chartered bunks 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;
2. Declare a moratorium on all home foreclosures for the duration of the transitional period, allowing families to retain their homes;
3. Require affordable monthly home mortgage payments, the equivalent of "rental payments," to be made to designated banks for use as collateral in normal lending practices for recapitalization of the banking industry and to factor such affordable payments into new mortgages thereby deflating the housing bubble, establishing appropriate property valuation and reducing fixed mortgage interest rates;
4. Provide an interim period during which homeowners may not be evicted from their homes and protection to banks pending the resumption of traditional banking functions, including serving local communities and facilitating credit for investment in productive entities; and
5. Authorize state governors to administer the implementation of programs, including provisions for "rental" assessments payable to specific banks and with provisions for necessary federal guarantees and credits to assure successful transition.

BE IT FURTHER RESOLVED that this resolution serve as notice that the Common Council of the City of East Chicago has been, is, and shall be vigilant as guardians of the public interest of the citizens of East Chicago in all matters to the extent legally feasible and possible. BE IT FINALLY RESOLVED, that the Clerk of the East Chicago City Council is hereby directed to transmit a true and correct copy of the adopted resolution to members of the United States Senate and the House of Representatives
PASSED and ADOPTED by the Common Council of the City of East Chicago, Lake County, Indiana, on this the 14 day of, 2008.