Laserfiche WebLink
4 <br /> Loan repayment may be amortized over a longer or shorter term by <br /> agreement of the parties. There shall be no penalty for prepayment. <br /> B. The percentage rate of interest for loans shall be determined on the date of <br /> loan commitment at 1.5% over the yield of government securities of <br /> comparable maturity (rounded up to the nearest 1/8 point). The floor of the <br /> Investor interest rate shall be 4.50% for a five year term and 5.50% for a ten <br /> year term. <br /> C. Upon sale or other transfer of the property, whether by operation of law or <br /> otherwise, the loan amount will, at the Lender's option, become immediately <br /> due and payable. <br /> D. The principal of the Lender loan shall reflect the costs of the preliminary title <br /> report or ownership search, the credit report, appraisal, and other direct <br /> expenses of the borrower. The borrower's loan proceeds, less the Lender's <br /> direct expenses, shall be made payable to the "CHIP" Escrow Account or will <br /> remain with the Lender to be drawn down over a time period not to exceed <br /> six months, at the borrower's option. If the funds are drawn down over time, <br /> CHIP will be authorized to draw the funds upon presentation of a written <br /> request. The borrower will pay interest on the drawn portion monthly. <br /> Scheduled principal and interest payments will begin upon depletion of loan <br /> funds or after six months, at Lender's preference. <br /> E. Loan fees shall not be in excess of the Lender's out-of-pocket expenses for <br /> the loan (i.e. Title Policy, Recording Fees, Flood Determination, Drive-By <br /> and Tax Change Notice). <br /> F. The City's loan shall be in a junior position to the Lender's loan. <br /> G. No loan shall be foreclosed by the Lender unless an attempt is made,jointly <br /> with the City, to first resolve the related financial problems of the borrower. <br /> V. Discrimination <br /> A. The Lender shall not discriminate against any borrower because of race, <br /> color, creed, age, sex, national origin, marital state, or other criterion not <br /> clearly related to eligibility or capacity to repay the loan applied for. <br /> B. The Lender shall not discriminate against any employee or applicant for <br /> employment because of race, color, creed, sex, age, national origin, or <br /> marital state. The Lender will take affirmative action to ensure that <br /> applicants for employment and that employees are treated without regard to <br /> their race, color, creed, age, sex, national origin, or marital state. Such <br /> actions shall include, but not be limited to, employment, upgrading, demotion, <br /> transfer, recruitment or recruitment advertising, layoff or termination, rates of <br /> 4 <br /> 29 <br />