Utah Admin. Code R850-80-500 - Agency Financing
(1) The agency
may offer financing at a variable interest rate on any unpaid portion of the
purchase price or other costs owed by the purchaser.
(2) Unless otherwise determined by the
director, the interest rate shall be equal to the greater of:
(a) the prime rate plus 2.5%, or
(b) 7.5%.
(3) The agency shall establish the interest
rate for each payment due by determining the prime rate as of the date of
billing, except for interest due pursuant to
R850-80-610(6)
and
R850-80-620(4).
(4) Interest is calculated on a 365-day
basis, except for interest due pursuant to
R850-80-610(6)
and
R850-80-620(4).
(5) The agency shall use the prime rate
established as of a date determined by the director prior to the sale to
determine the interest due pursuant to
R850-80-610(6)
and
R850-80-620(4).
(6) A purchaser that finances through the
agency shall make annual payments on the debt for no longer than 20 years. The
agency may establish a shorter financing period.
(7) The purchaser shall make the first
payment on or before one year from the first day of the month following the
date of sale. The purchaser shall make all subsequent payments on or before the
first day of the same month of each year thereafter until the balance is paid
in full. The agency may require more frequent payments.
(8) The agency shall apply amounts paid in
excess of the current obligation to principal. The purchaser may pre-pay the
unpaid balance and accrued interest at any time without penalty.
(9) If the purchaser fails to pay an annual
payment or accrued interest when due, the agency shall send the purchaser
notice of default and allow the purchaser to cure the default, including paying
any late fees, within 30 days of the notice. If the purchaser fails to cure the
default within the 30-day cure period, the agency may accelerate the debt,
forfeit the purchaser's interest in the subject parcel, and pursue all other
available contractual, legal, or equitable remedies, including specific
performance.
(10) A purchaser that
finances through the agency shall execute and acknowledge a quitclaim deed in
favor of the agency for the subject parcel. The agency may not record the
quitclaim deed unless the agency forfeits the purchaser's interest in the
subject parcel pursuant to R850-80-500(5).
Notes
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