(a) Except as otherwise provided, all loans referred to in section 9 of this title shall be made with interest at the rate not to exceed the 10-year Treasury Note Rate, and shall be payable in a period not exceeding 30 years. Loans for home purchases granted under this program shall be for a period not exceeding 30 years. Home improvement loans or loans for the purchase of land shall be for a period not exceeding 10 years, at the same interest rate. Interest on the loans shall begin to accrue 30 days prior to the date on which the first payment is due, or 1 year from the date on which any portion of the loan is made to the applicant, whichever date is earlier.
(b) The Executive Director of the Virgin Islands Housing Finance Authority, for and on behalf of the Government of the Virgin Islands, shall hold a first or second priority mortgage upon each building constructed or being constructed under the provisions of this chapter until the loan and interest have been paid in full. The owner shall carry fire and hurricane insurance on the building.
(c) After a loan has been approved by the Executive Director of the Virgin Islands Housing Finance Authority, the monies shall be advanced to the borrower during construction at intervals to be determined by the Executive Director of the Virgin Islands Housing Finance Authority. The first payment on a loan granted for home construction shall be made within 60 days after the completion of the building. The first payment on a loan granted for the purchase of land or the purchase of a home shall be made within 60 days after the first advancement of monies is received by the borrower. The first payment on a loan granted for home improvement shall be made sixty 60 days after the completion of the home improvement project. Payment shall be made monthly.
(d) For the purposes of this chapter, the Commissioner of Public Works shall determine when the building is completed and shall so notify the Commissioner of Finance in order that initial date of payment of the loan may be known.