Encumbrances.

CFR · 2024-01-01 · US · Title 13

(a) (b) (1) (2) (3) (i) The requirements of § 314.7(b) are met; (ii) Consistent with paragraphs (b)(4)(iv) and (b)(5)(iv) of this section, the terms and conditions of the encumbrance are satisfactory; and (iii) Consistent with paragraphs (b)(4)(v) and (b)(5)(v) of this section, there is a reasonable expectation that the Recipient will not default on its obligations. (4) (i) EDA, in its sole discretion, determines that there is good cause and legal authority to waive paragraph (a) of this section; (ii) All proceeds secured by the encumbrance on the Property shall be available only to the Recipient and shall be used only for the Project for which the Investment Assistance applies, for related activities of which the Project is an essential part, or other activities that EDA determines are authorized under PWEDA; (iii) A grantor or lender will not provide funds without the security of a lien on the Property; (iv) The terms and conditions of the encumbrance are satisfactory to EDA; and (v) There is a reasonable expectation, as determined by EDA, that the Recipient will not default on its obligations. In determining whether an expectation is reasonable for purposes of this paragraph, EDA shall take into account whether: (A) A Recipient that is a non-profit organization is joined in the Project with a co-Recipient that is a public body and all co-Recipients are jointly and severally responsible; (B) A Recipient that is a non-profit organization is financially strong and is an estab

official document · source cfr-2024 · id 13:§ 314.6