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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 5.5% 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 /> national origin, color, creed, age, sex, sexual orientation, gender identity, marital
<br /> status, or other criterion not clearly related to eligibility or capacity to repay the loan
<br /> applied for.
<br /> B. The Lender shall not discriminate against any employee or applicant for
<br /> employment because of race, national origin, color, creed, age, sex, sexual
<br /> orientation, gender identity, age, or marital status. The Lender will take affirmative
<br /> action to ensure that applicants for employment and that employees are treated
<br /> without regard to their race, color, creed, age, sex, national origin, or marital state.
<br /> Such actions shall include, but not be limited to, employment, upgrading, demotion,
<br /> transfer, recruitment or recruitment advertising, layoff or termination, rates of
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