Prior to the adoption of Ord. 20527 on 01/04/2010, Section 27-166 read as follows.

    (a) All loans made under the program shall bear an annual effective interest rate equal to the city "opportunity cost" at the time of the loan. "Opportunity cost" is hereby defined to be the interest cost of the city on its short term borrowing.

    (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)     The city shall not subordinate a deed of trust securing a loan under this program to any subsequent deed of trust.   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)