May 1992
Revised May 20, 2009
Purpose
The program is established to attract and retain promising young faculty members by providing down payments for the purchase of houses in Claremont and the surrounding area.
Eligibility
Tenure track faculty are eligible to apply for this program after their first successful review and reappointment through their third year past tenure by the Appointments, Promotion and Tenure Committee. Eligibility is not a guarantee of receiving a loan. Loans will be granted at the discretion of the Dean of Faculty and with final approval from the President. In the event that insufficient funds are available, the Treasurer has the discretion to authorize loans in excess of available cash, up to the value of one loan, to be funded by operating cash. Interest will be paid by the Fund to operating cash on the short term loan at the then prevailing interest rate earned on operating cash.
Terms and Conditions
A loan secured by a second deed of trust will be granted for ten percent of the purchase price of a house up to a maximum of $50,000. This amount is subject to adjustment in response to market conditions.
The loan will be free of interest and principal payments for three years from the date of origination. Thereafter, principal and interest payments are due monthly to fully amortize the loan over 12 years at 6% interest to be paid by payroll deduction. Interest rate and principal payments are subject to change for future loans based upon market conditions.
Prepayment of the loan is possible at any time without penalty and due upon sale of the house or one year after termination of employment by Scripps College.
Exceptions to the terms and conditions shall be approved by the Investment Committee.
Oversight
The program shall be reviewed periodically by the Investment Committee of the Board of Trustees. Changes in terms and conditions of the loans may be authorized in the interests of the program, as well as the financial viability of the fund.
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