Each Seismic Safety Loan shall be evidenced by a loan agreement, a promissory note, a Deed of Trust, a Regulatory Agreement (where applicable), escrow instructions, and any other documents reasonably required to evidence the Seismic Safety Loan and adequately protect the City’s interest in the Applicant’s completion of the Seismic Strengthening and repayment of the Seismic Safety Loan. The form and content of such loan documents shall be reviewed and approved by the City Attorney’s Office and the Program Administrator.
As a condition to the close of any Seismic Safety Loan, the Deed of Trust and Regulatory Agreement (where applicable) shall be recorded as liens against the Property, subject only to those encumbrances approved by the City. The loan documents shall provide that a Seismic Safety Loan shall, at the City’s option, be due and payable immediately upon the close of escrow of any sale or transfer of the Property. The City may permit subsequent owners of the Property or transferees of the Borrower to assume an existing Seismic Safety Loan, provided that the Property and the subsequent owners or transferees continue to meet the criteria set forth in Section 66A.4, and that any such subsequent owner or transferee expressly agrees in writing to assume all of the Borrower’s obligations under the Seismic Safety Loan documents.
A default under any document(s) evidencing a Seismic Safety Loan, including but not limited to a Regulatory Agreement, shall constitute a default under the loan agreement and allow the City to pursue any remedies available at law or in equity.
(Added by Ord. 100-94, App. 3/11/94)