Indianapolis City Council Passes the Homeowners and Bank Protection Act

The resolution "urges a moratorium on home foreclosures and for Congressional enactment of a Homeowners and Bank Protection Act."

The resolution can be found below.

CITY COUNTY COUNCIL

PROPOSAL NO. 558, 2007

CITY OF INDIANAPOLIS-MARION COUNTY, INDIANA

INTRODUCED: 12/03/2007

REFERRED TO: Committee of the Whole

SPONSOR: Councillor Sanders

DIGEST: urges a moratorium on home foreclosures and for Congressional enactment of a Homeowners

and Bank Protection Act

SOURCE:

Initiated by: Councillor Sanders

Drafted by: Aaron E. Haith, General Counsel

LEGAL REQUIREMENTS FOR ADOPTION:

PROPOSED EFFECTIVE DATE:

Adoption and approvals

GENERAL COUNSEL APPROVAL: _________________________________ Date: December 3, 2007

CITY-COUNTY COUNCIL RESOLUTION NO. , 2007

A PROPOSAL FOR A COUNCIL 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 Indianapolis and Marion County, 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 Indianapolis and Marion County 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 BY THE CITY-COUNTY COUNCIL OF THE

CITY OF INDIANAPOLIS AND OF MARION COUNTY, INDIANA:

SECTION 1. The City-County Council call upon The United States Congress to take emergency action

to protect homeowners by enacting a Homeowners and Banks Protection Act specifically to:

Proposal No. 558, 2007

(1) 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;

(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 in all matters to the extent legally feasible and possible.

SECTION 2. BE IT FURTHER RESOLVED that this resolution serve as notice that the City-County

Council has been, is, and shall be vigilant as guardians of the public interest of the citizens of Indianapolis in all matters to the extent legally feasible and possible.

SECTION 3. The Clerk of the 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.

SECTION 4. This resolution shall be in full force and effect upon adoption and compliance with IC 36-3-4-14.

The foregoing was passed by the City-County Council this _____ day of __________, 2007, at _____ p.m.

ATTEST:

____________________________________

Monroe Gray

President, City-County Council

____________________________________

Jean Ann Milharcic

Clerk, City-County Council