Section 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(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).Utah Admin. Code R850-80-500
Amended by Utah State Bulletin Number 2021-12, effective 6/8/2021Amended by Utah State Bulletin Number 2021-13, effective 6/8/2021