Section 27-166 Interest rate established; security required.

(a) All loans made under the program shall bear an annual effective interest rate determined by the length of the loan repayment. Interest rate shall be set as follows:

Loan of three (3) years or less 1%

Loan of greater than three (3) years but not more than five (5) years 3%

Loan of greater than five (5) years but not more than ten (10) years 5%

(b) All loans shall be secured by a deed of trust for the property to which the improvement purchased with the loan proceed is affixed.

(c) The loan documents, note and security interest or deed of trust evidencing the loan shall be in the form approved by the city counselor.

(d) When the owner of property encumbered by a deed of trust securing a loan under this program refinances a loan secured by a first deed of trust on the property, the city manager is authorized to subordinate the city’s deed of trust to the deed of trust securing the refinanced loan if the purpose of the loan is:

(1) To obtain a lower interest rate, or

(2) To secure funding for improvements to the property.

(Code 1964, § 15.950; Ord. No. 13794, § 1, 9-7-93; Ord. No. 17895, § 1, 11-3-03; Ord. No. 20527, § 1, 1-4-10; Ord. No. 20582, § 1, 03-15-10)

(Ord. 20582, Amended, 03/15/2010, Prior Text; Ord. 20527, Amended, 01/04/2010, Prior Text; Ord. 017895, Amended, 11/03/2003, Prior Text)