2011 California Code
Harbors and Navigation Code
DIVISION 1. DEPARTMENT OF BOATING AND WATERWAYS AND THE BOATING AND WATERWAYS COMMISSION [30 - 88]
ARTICLE 5. Recreational Marinas
Section 76.6

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.

(b) The department 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.

(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.

(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.

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

(Amended by Stats. 2009, Ch. 610, Sec. 13. Effective January 1, 2010.)