County Employees Retirement Law of 1937 (CERL) - sdcera

program utilizing the retirement fund to assist system members and annuitants, through
financing, to obtain homes in this state. The board shall adopt regulations governing the
program which shall, among other things, provide:
(a) That home loans be made available to currently employed members and annuitants
for the purchase of single-family dwellings, two-family dwellings, three-family dwellings, fourfamily
dwellings, single-family cooperative apartments, and single-family condominiums.
(b) That private lending institutions in this state shall originate and service its home
loans pursuant to agreements entered into between those institutions and the board.
(c) That the recipients of the loans occupy the homes as their permanent residence in
accordance with the rules and regulations established by the board.
(d) That its home loans shall be available only for the purchase or refinancing of homes
in this state and that under no condition shall a member or annuitant have more than one
outstanding loan.
(e) That the amount and length of the loans shall be pursuant to a schedule periodically
established by the board which shall provide a loan to value ratio of: (1) for the first loan,
except for three-family dwellings and four-family dwellings, a maximum of 95 percent of the
first loan; (2) for the first loan on three-family dwellings and four-family dwellings, a maximum
of 90 percent of the first loan; and (3) for each additional loan, a maximum of 80 percent of each
additional loan. The portion of any loan exceeding 80 percent of value shall be insured by an
admitted mortgage guaranty insurer conforming to Chapter 2A (commencing with Section
12640.01) of Part 6 of Division 2 of the Insurance Code in an amount so that the unguaranteed
portion of the loan does not exceed 75 percent of the market value of the property together with
improvements thereon.
(f) That there may be prepayment penalties assessed on its loan in accordance with the
rules and regulations established by the board.
(g) That the criteria and terms for its loans shall provide the greatest benefit to members
and annuitants consistent with the financial integrity of the program and the sound investment
of the retirement fund.
(h) Any other terms and conditions as the board shall deem appropriate.
(Amended by Stats. 1991, Ch. 1091, Sec. 58)
§31603. Loans
The board of retirement or the board of investments, as applicable, may obtain a loan
and pledge a portion of the assets of the retirement fund as security for the repayment of the
loan if the board finds all of the following:
(a) An emergency exists affecting the national banking system or financial markets.
(b) The emergency prevents the association from readily accessing its funds.
(c) The loan is necessary to promptly deliver benefits when due.
The assets of the retirement fund pledged as security for the loan shall be subject to
execution and other processes of the court only in connection with a proceeding to enforce the
loan. The costs associated with securing and repaying the loan, including interest, shall be a
charge against investment earnings of the fund.
(Added by Stats. 2003, Ch. 520 (A.B. 1585), Sec. 6)
§31607. Employment of attorney
To assist in carrying out its investment powers and duties the board may employ an
attorney in private practice.
(Amended by Stats. 1984, Ch. 1738, Sec. 26, Effective September 30, 1984)
Article 5, §31602. - §31607. 138