By Karen Billing
The Rancho Santa Fe Association approved the RSF Golf Club’s request to recast its loan with the RSF Association at a current market rate and adjust its monthly payment.
When the loan was approved in March of 2012, the Golf Club requested the ability to return every year to request a recasting of the loan’s maturity to stay within the five-year limitation and take advantage of the current interest rate. The original note rate was fixed at 2 percent, while the current market rate quoted by Union Bank’s money desk for a five year CD is 1.2 percent.
The club is also considering an additional principal reduction of $125,000 before the loan is recast and would bring the total principal reduction over the last 12 months to $225,000.
The loan with the Association is one of two the Golf Club has — the larger one was refinanced with Pacific Western Bank in 2012 at a fixed rate of 4 percent with an amortizing payment of $35,236.
“Our loan has a shorter time fuse and they’d like to get it off the books,” said RSF Association Manager Pete Smith.