Section 51182 Of Article 4.5. Subordinated Mortgage Loans From California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 5. >> Article 4.5.
51182
. The agency shall determine the manner in which subordinated
loans are to be repaid. Potential methods of repayment may include,
but not be limited to:
(a) An interest payment of 3 percent to be made from the positive
cash flows of the project before payment to any other equity investor
or mortgage loan holder is made.
(b) Repayment upon conversion or the term of the bond, whichever
is less, to the state, including an interest payment of 3 percent.