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VI REPAYMENT AND SECURITIZATION <br /> SECURITY REOUIREMENTS <br /> The City will provide appropriate project by project security for all loans or grants made <br /> with the Section 108 assistance. Means of satisfying these requirements include, but are not <br /> limited to, the following: <br /> A. A security interest in the property or capital equipment assisted with the <br /> Section 108 financing, but in a position junior to any private lien or mortgage <br /> as necessary. <br /> B. Security and other property owned by a person, partnership, or corporate <br /> entity borrowing the Section 108 funds. <br /> C. Other collateral of sufficient value acceptable to HUD. <br /> In the case of City grants and/or City sponsored projects (e.g. social services facilities) <br /> the City shall propose to HUD, at that time, the security requirement to insure adequate cash <br /> flow coverage and the appropriate loan to value coverage acceptable to HUD, such as, special <br /> taxing or special benefit districts, payment in lieu of taxes, fees for service and program income, <br /> etc. <br /> Proposed Section 108 Loan Application Page 11 06/11/02 <br />