(1) Any loan contract providing for a loan of moneys to a borrower by a city or district shall include a plan for repayment by the borrower of moneys borrowed plus interest. The repayment plan: (a) Shall provide that the city or district obtain a lien on the structure in which a fire safety system is installed. Except for tax liens, the lien acquired by the city or district shall have priority over all other liens on the structure. (b) Shall provide for such other assurance of, and security for, repayment by the borrower as is considered necessary by the city or district. (c) Shall set forth the interest rate on the loan as reasonably determined by the city or district. (d) Shall provide for repayment during a period that shall be the lesser of the useful life of the proposed fire safety system or the term of the bond as determined by the city or district. (2) A loan contract under subsection (1) of this section may provide that the amount of repayment by a borrower include an amount sufficient to reimburse the city or district for the borrowers allocable share of the costs of issuing revenue bonds under ORS 478.845 to 478.875 to finance the loan contract, all administrative expenses relating to the loan contract and such amounts as may be established by the city or district to maintain a reserve in the loan fund created under ORS 478.855 to pay or reimburse future losses directly related to the loans financed with moneys from the loan fund. Note: See note under 478.840.
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