Underwriting standards for qualifying CRE loans.

CFR · 2024-01-01 · US · Title 12

(a) (i) An enforceable first lien, documented and recorded appropriately pursuant to applicable law, on the commercial real estate and improvements; (ii)(A) An assignment of: ( ( (B) An assignment of all other payments due to the borrower or due to any operating affiliate in connection with the operation of the property described in paragraph (a)(1)(i) of this section; and (C) The right to enforce the agreements described in paragraph (a)(1)(ii)(A) of this section and the agreements under which payments under paragraph (a)(1)(ii)(B) of this section are due against, and collect (iii) A security interest: (A) In all interests of the borrower and any applicable operating affiliate in all tangible and intangible personal property of any kind, in or used in the operation of or in connection with, pertaining to, arising from, or constituting, any of the collateral described in paragraphs (a)(1)(i) or (ii) of this section; and (B) In the form of a perfected security interest if the security interest in such property can be perfected by the filing of a financing statement, fixture filing, or similar document pursuant to the law governing the perfection of such security interest; (2) Prior to origination of the CRE loan, the originator: (i) Verified and documented the current financial condition of the borrower and each operating affiliate; (ii) Obtained a written appraisal of the real property securing the loan that: (A) Had an effective date not more than six months prior to the ori

official document · source cfr-2024 · id 12:§ 43.17