(a) Every applicant shall be required to submit with its loan application an affidavit disclosing (1) any delinquencies of any of its substantial owners on a court-ordered child support arrearage and, (2) if any exist, whether the substantial owner has entered into a court-approved agreement for the payment of all child support owed and is in compliance with such agreement, and (3) whether the applicant is in compliance with any child support withholding notices naming it as the payor.
(b) No loan may be given to any applicant where the affidavit discloses, or the city otherwise finds, that a substantial owner is delinquent on a court-ordered child support arrearage unless, prior to closing, the applicant provides the city with sufficient evidence of the following:
(1) the substantial owner has paid to the obligee all child support then due under the court order, as evidenced by a certified court order or official clerk's records that no support is due and owing; or
(2) the substantial owner has entered into a court-approved agreement for the payment of all child support owed and is in compliance with such agreement.
(c) No loan may be given to any applicant where the affidavit discloses, or the city otherwise finds, that the applicant is not complying with a child support withholding notice unless, prior to closing, the applicant provides the city with evidence of compliance, by means of canceled checks paid to the obligee, official clerk's records that payments were received on behalf of the obligee, or other competent evidence.
(d) Once a loan is made, every borrower must comply with all child support withholding notices that are served upon it. Failure to comply with such an order, after notice from the city of such noncompliance and a 30-day opportunity to cure, shall be an event of default.
(Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 7; Amend Coun. J. 11-8-12, p. 38872, § 140)