February 12, 2008 (LPAC)--After intense debate, the City Council of Florence, South Carolina passed a resolution urging Congressional passage of the LaRouche-authored Homeowners and Bank Protection Act on Feb. 11. Florence, a town of 32,000, lies in the heart of the hard-hit textile belt of South Carolina.
The resolution reads:
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 South Carolina 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 South Caroline and the City of Florence, 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 South Carolina and the City of Florence accept the privilege of service with the understanding of their responsiblity 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 COUNCIL OF THE CITY OF FLORENCE:
SECTION 1. The City Council 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 banks under protection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructing 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 payment,' 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 Council has been, is, and shall be vigilant as guardians of the public interest of the citizens of South Caroline 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.
