§ 2-05 Contract Terms and Insurance Requirements.
RCNY § 2-05
(a)Loan documents. Each loan shall be evidenced by a promissory note executed by the owner of the multiple dwelling in form specified by the Department. The Department in its discretion may require that one or more of the shareholders, officers or directors of a corporate owner co-sign the note or otherwise guarantee or pledge security or provide an acceptable surety for the repayment of the loan. The following additional documents may be required: (1) Building Loan Contract. A Building Loan Contract between the owner and the City in form specified by the Department.
(2)Mortgage or financing statement. A mortgage executed by the owner in form specified by the Department, shall be required as security for all loans, except that, if the loan is for thirty-five thousand ($35,000) dollars or less, or for a term of seven (7) years or less, the Department may, in its discretion, accept a financing statement as security.
(3)Disclosure statement. A sworn disclosure statement, in form specified by the Department, executed by the owner or his duly authorized agent disclosing the identity of all parties involved or to be involved in the ownership, financing and rehabilitation or improvement of the building.
(4)Such other documents executed by the owner as the City or the Department and its attorneys deem necessary or desirable.
(b)Repayment of the loan by the borrower.
(1)Method of repayment. Debt service consisting of payments of interest on the unpaid principal balance and repayment of the principal amount shall be paid in equal monthly installments so as to be fully amortized by the maturity date of the loan. At its discretion, the Department may require an alternative schedule of loan payments provided the loan is fully paid by its maturity date.
(c)Insurance requirements.
