If the governing body approves the application for a loan, the loan must be:

1. 1. Evidenced by a promissory note, the principal amount of which must be equal to the amount of the loan, secured by a mortgage on the property; and

2. 2. Made pursuant to an agreement between the county or city and the natural person or organization to whom the loan is made, identifying the property, specifying the amount and period of, and rate of interest on, the loan and providing that:

   1. (a) The property must be rehabilitated for decent, safe and sanitary residential use; and
   2. (b) The rehabilitation must begin and be completed within a period determined by the governing body.

(Added to NRS by 1987, 2205; A 2005, 1304)