San Diego Municipal Code § 61.1912 Cash Payment of Special Assessments and Redemption and Prepayment of

Assessment Bonds

The City Manager, for and on behalf of the City, may pay the special assessment due
or to become due upon any applicant’s real property or, if there is an outstanding
assessment bond on applicant’s real property, may redeem and prepay the bond.
Expenditures made for the purpose of paying special assessments or of redeeming
and prepaying bonds shall be paid from the Assessment Deferral Fund.
(“Cash Payment of Special Assessments and Redemption and Prepayment of
Assessment Bonds” added 10–26–1977 by O–12196 N.S.)

Ch. Art. Div.
6 1 19 9

San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (6-2000)

Prior to final approval of any application for assessment deferral and to the City’s payment of a special assessment or the redemption and prepayment of an assessment bond, the applicant shall execute and deliver a note and mortgage to the City Manager.

The note shall be in a principal amount equal to the special assessment paid by the
City upon applicant’s real property or, if there is an outstanding bond on applicant’s
real property, the amount required to be paid by the City for the redemption and
prepayment of the bond.

The principal amount of the note shall bear simple annual interest determined as
follows:

(a) Until the maturity date of the bond issued or which otherwise would have
been issued on owner’s property, the interest rate on the note shall be the
same as the interest rate specified in the bond.

(b) After the maturity date of the bond, the interest rate shall be the average
annual interest rate thereafter earned by the City on its long–term investments.

The entire unpaid principal amount of the note, together with all interest due thereon,
shall become immediately due and payable to the City upon and before any transfer
or refinancing affecting the real property described in the mortgage securing the note.

The mortgage securing the note shall secure the entire unpaid principal of the note,
together with all interest due thereon, and shall be such as to constitute an enforceable
lien against the real property described therein. The mortgage shall provide that
failure to pay the City the entire amount due upon the note constitutes an event of
default, upon the occurrence of which the City may enforce the mortgage by the sale
or foreclosure of the property described therein. The mortgage shall further require
the owner to give prompt written notice to the City Manager of any proposed transfer
of or refinancing pertaining to the real property.
(“Same — Notes and Mortgages” added 10–26–1977 by O–12196 N.S.)