§ 9-37. Limitations.

(a)

Grants and loans shall be made in the name of the city to an owner-occupant of a parcel of land containing not more than two (2) dwelling units. The properties to be improved and rehabilitated must be situated within the city limits.

(b)

All grants and loans shall be selected, administered and secured as determined by any rules adopted by the city council to implement the purpose of this article.

(c)

Monthly payments shall be made on all loans. The grant/loan committee may defer payments for such periods as deemed appropriate and necessary upon its determination that the owner-occupant is unable to meet these payments because of limited income, unemployment or any other valid reason.

(d)

As long as the owner-occupant resides in the house and retains title to the house, no foreclosure proceedings can be instituted even though the owner is in default on loan payments.

(e)

The term of each loan shall be determined by each owner-occupant's ability to pay.

(f)

The full outstanding balance of the loan shall immediately become due and payable should the borrower voluntarily cease to be owner-occupant of the property or if the title to the property is transferred prior to the maturity date provided in the loan agreement.

(g)

All loans shall be reviewed semiannually to assure compliance with all rules and regulations adopted pursuant to this article.

(Code 1966, § 11½-20)