Cal. Harb. & Nav. Code § 76.6

Recreational Marinas

Redline — January 1, 2011 → current.View current text →

Current — January 1, 2013

As of January 1, 2011

Loans made under this article shall include, but are not limited to, the following terms and conditions:

(a) The minimum annual rate of interest charged by the ~~department~~ for a loan shall be set annually by the ~~commission~~ and shall be a rate equal to 1 percent per annum plus the prime or base rate of interest.

(a) The minimum annual rate of interest charged by the division for a loan shall be set annually by the division and shall be a rate equal to 1 percent per annum plus the prime or base rate of interest.

(b) The ~~department~~ shall require collateral in a minimum amount of 110 percent of the loan.

(b) The division shall require collateral in a minimum amount of 110 percent of the loan.

(c) The repayment period of a loan shall not exceed 20 years, or be longer than the length of the borrower’s leasehold estate, including renewal options, if the loan is based upon a leasehold estate of the borrower.

(d) All loans shall amortize the principal over the term of the loan. However, a loan shall become due and payable in full if the borrower sells or otherwise transfers the recreational marina developed with ~~departmental~~ funds, unless the transfer is, by reason of the death of the borrower, to the borrower’s heirs.

(d) All loans shall amortize the principal over the term of the loan. However, a loan shall become due and payable in full if the borrower sells or otherwise transfers the recreational marina developed with divisional funds, unless the transfer is, by reason of the death of the borrower, to the borrower’s heirs.

(e) The ~~department’s~~ loans shall not be subordinated to any future loans obtained by a private marina owner, except in those cases involving loans acquired for refinancing previous senior loans.

(e) The division’s loans shall not be subordinated to any future loans obtained by a private marina owner, except in those cases involving loans acquired for refinancing previous senior loans.

(f) The ~~department~~ may allow assumption of loans from the original borrower by future parties, subject to completion of the application process and upon approval by the ~~department and the commission.~~

(f) The division may allow assumption of loans from the original borrower by future parties, subject to completion of the application process and upon approval by the division.

(g) The ~~department~~ may, upon written request by the borrower, ~~and upon the approval of the commission,~~ restate an existing loan.

(g) The division may, upon written request by the borrower, restate an existing loan.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.