Supplement 8H Consent 2013 0506 - Laserfiche WebLink

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line 1 chapter, and with additional endorsements that the office may line 2 reasonably require. line 3 (c) The proceeds of the loan shall be used exclusively for the line 4 construction, improvement, or expansion of the health facility, as line 5 approved by the office under Section 129020. However, loans line 6 insured pursuant to this chapter may include loans to refinance line 7 another prior loan, whether or not state insured and without regard line 8 to the date of the prior loan, if the office determines that the amount line 9 refinanced does not exceed 90 percent of the original total line 10 construction costs and is otherwise eligible for insurance under line 11 this chapter. The office may not insure a loan for a health facility line 12 that the office determines is not needed pursuant to subdivision line 13 (k). line 14 (d) The loan shall have a maturity date not exceeding 30 years line 15 from the date of the beginning of amortization of the loan, except line 16 as authorized by subdivision (e), or 75 percent of the office’s line 17 estimate of the economic life of the health facility, whichever is line 18 the lesser. line 19 (e) The loan shall contain complete amortization provisions line 20 requiring periodic payments by the borrower not in excess of its line 21 reasonable ability to pay as determined by the office. The office line 22 shall permit a reasonable period of time during which the first line 23 payment to amortization may be waived on agreement by the lender line 24 and borrower. The office may, however, waive the amortization line 25 requirements of this subdivision and of subdivision (g) of this line 26 section when a term loan would be in the borrower’s best interest. line 27 (f) The loan shall bear interest on the amount of the principal line 28 obligation outstanding at any time at a rate, as negotiated by the line 29 borrower and lender, as the office finds necessary to meet the loan line 30 money market. As used in this chapter, “interest” does not include line 31 premium charges for insurance and service charges if any. Where line 32 a loan is evidenced by a bond issue of a political subdivision, the line 33 interest thereon may be at any rate the bonds may legally bear. line 34 (g) The loan shall provide for the application of the borrower’s line 35 periodic payments to amortization of the principal of the loan. line 36 (h) The loan shall contain those terms and provisions with line 37 respect to insurance, repairs, alterations, payment of taxes and line 38 assessments, foreclosure proceedings, anticipation of maturity, line 39 additional and secondary liens, and other matters the office may line 40 in its discretion prescribe. 96 — 16 —AB 975