A. The City has a vital interest in ensuring the repayment of its commercial loans. These loan repayments are loaned to other small businesses and commercial property owners located in the target area. The purpose of these commercial loans is to aid in the expansion of local small businesses and generate employment opportunities for Berkeley residents.

B. City policies governing default of City commercial loans should to the maximum extent feasible, ensure that the borrower is given every opportunity to repay the loan without resorting to foreclosure and liquidation procedures.

C. The enactment of separate ordinances to authorize the City Manager to take specific actions in each instance of loan default would cause undue delay and thereby impair the City Manager’s ability to protect the City’s financial interests.

D. In enacting this chapter, the City is acting pursuant to the laws contained in the Uniform Commercial Codes and general laws of the state of California, which provide remedies to creditors with security interests in commercial assets, real and personal property. (Ord. 5635-NS § 1, 1985)