§ 58-06 Terms and Conditions for the Collection and Remittance of Loan Payments by the Administering Agency.
RCNY § 58-06
a. Simultaneous with the execution of a Program Financing Agreement for a Loan, the Lender and the Borrower shall become a party to a Collection Agreement. b. The Administrator will provide written notice to the Administering Agency when a Program Financing Agreement has been executed. No later than either 30 days after such written notice or 15 days prior to the Statement of Account Issue Date following such written notice, whichever is earlier, the Administrator will provide to the Administering Agency a Payment Report for the property benefited by such Loan. Following receipt of such Payment Report, the Administering Agency will list any Program Charge as a clearly identified line item on the next issued Statement of Account for such property. Thereafter, no later than 15 days prior to each subsequent Statement of Account Issue Date, the Administrator will further provide to the Administering Agency a Payment Report for such property. Following receipt of each such Payment Report, the Administering Agency will list any Program Charge as a clearly identified line item on the next issued Statement of Account for such property. c. Upon execution of the Program Financing Agreement and the Collection Agreement, a written notice shall be recorded in the records of the Office of the City Register or the Richmond County Clerk's Office as notice that the property is subject to the Loan. d. The Lender is the owner of the PACE Loan Lien. The Lender or subsequent holder of such PACE Loan Lien may enforce the PACE Loan Lien pursuant to all applicable provisions of law, including article 13 of the New York State Real Property Actions and Proceedings Law. e. The City will collect each Program Charge in the same manner that it collects each City Charge, including, but not limited to, with respect to: 1. The payment due date as provided pursuant to section 1519-a of the New York City Charter, except that a Program Charge shall not be eligible for any discount for early payment pursuant to such section; and 2. Any penalties, fees, remedies and liens provided by state and local law. f. The Administering Agency will segregate any amount collected as payment for a Program Charge from City funds and will deposit such amount into a separate account for which the Administrator or its trustee is identified as the beneficial owner. g. In accordance with the Administration Agreement, the Administering Agency will transmit to the Administrator or its designated trustee any amount collected as payment for a Program Charge within a calendar month no later than 15 business days after the last day of such month and will simultaneously provide to the Administrator a report detailing the amount collected for any Program Charge listed on the Payment Report. h. In the absence of an Administration Agreement, the Administering Agency will transmit any amount collected for a Program Charge to the applicable Lender. i. Any partial payment of a City Charge or a Program Charge listed on the Statement of Account shall be allocated to payment of City Charges and any interest or penalties thereon until such City Charges are paid in full, before any amount of such partial payment shall be allocated to any Program Charge. j. The proceeds of the Loan shall be: 1. Disbursed on the closing date; or 2. Held in escrow or pursuant to a similar arrangement and disbursed in installments to the Borrower periodically as construction progresses. k. Notwithstanding subdivision j of this section or any other rule to the contrary, the entirety of the Loan amount shall be deemed to have been disbursed as of the closing date for purposes of establishing a schedule for repayment of the Loan, including any interest or fees. l. The Program Guidelines may require the payment of fees for the administration of the Program. (Added City Record 3/22/2021, eff. 4/21/2021; amended City Record 10/5/2023, eff. 11/4/2023)
