A. No person may take or use the primary residence of a lessee as security for any lease payment or other indebtedness incurred through the lease arrangement.

B. The City Manager shall develop bonding requirements for leasing companies, installers and management companies participating in the MSU solar leasing program. Required bonds must be posted with the City prior to a permit being granted for participation in the program. All bonds shall be permittee bonds secured for an initial term of at least one year.

C. Permittee bonds shall guarantee full performance of the permittee’s responsibilities as a participant in the program. Permittee bonds shall be held by the City and shall be used to compensate lessees for loss or damage suffered as a result of the permittee’s failure to perform under the conditions of the permit and according to procedures set forth herein and in any rules and regulations promulgated to implement any provisions of this chapter.

D. All solar energy devices installed under the MSU solar leasing program must receive required building permits. Special fees may be established, if necessary, for solar energy devices based on type and size to defray the special inspection costs they entail.

E. The City may establish an arbitration board to hear and resolve any controversy or claim arising out of or relating to the lease arrangement or installation of solar energy systems leased under the MSU solar leasing program. If the arbitration board is established, all permittees and lessees must agree to use the arbitration board to resolve disputes, claims or controversies. The arbitration board’s award shall be final and binding on all parties, except as provided by state law, and judgment upon the award may be entered in any court having jurisdiction thereof. (Ord. 2012 § 6, 1982).