Bond Loan terms and conditions.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) The Bond Loan shall be further secured by a first lien of the Master Servicer/Trustee, on behalf of the Bondholder, on: (i) The Trust Estate; (ii) Qualified Secondary Loan Receivables; and (iii) Either: (A) An assignment of the Secondary Loan collateral (other than a Principal Loss Collateral Provision) from the Eligible CDFI to the Master Servicer/Trustee; or (B) Provision of a Principal Loss Collateral Provision for the benefit of the Master Servicer/Trustee, in accordance with the Bond Loan Requirements and the Secondary Loan Requirements, as applicable. (3) The CDFI Fund may, in its sole discretion, approve alternative forms of Bond Loan collateral. (4) A parity first lien on pledged collateral may be accepted, in the sole discretion of the CDFI Fund. (5) If any collateral becomes non-performing during the term of the Bond Loan, the Guarantor may require the applicable Eligible CDFI to substitute other collateral that is of equal quality to the initial collateral, when performing, acceptable to the Guarantor in its sole discretion. (6) An Eligible CDFI's parent organization, Affiliate, or an entity that is related to the Eligible CDFI through its management structure, may assume limited recourse obligation for the Bond Loan if it provides Credit Enhancement and/or pledges financial resources or such other financial support or risk mitigation that would enhance the Eligible CDFI's creditworthiness and its ability to repay the Bond Loan, thereby decreasing the r

official document · source cfr-2024 · id 12:§ 1808.305