Minimum bond specifications.

CFR · 2024-01-01 · US · Title 7

The provisions of this section are minimum specifications only and must be followed to the extent legally permissible. (a) (b) (c) (d) (e) (1) If income is available monthly, monthly payments are recommended unless precluded by State law. If income is available quarterly or otherwise more frequently than annually, payments must be scheduled on such basis. However, if State law only permits principal plus interest (P&I) type bonds, annual or semiannual payments will be used. (2) The payment schedule will be enumerated in the evidence of debt, or if that is not feasible, in a supplemental agreement. (3) If feasible, the first payment will be scheduled one full month, or other period, as appropriate, from the date of loan closing or any deferment period. (f) (1) For loans with amortized debt instruments, extra payments will be applied first to interest accrued to the date of receipt of the payment and second to principal. (2) For loans with debt instruments with P&I installments, the extra payment will be applied to the final unpaid principal installment. (3) For borrowers with more than one loan, the extra payment will be applied to the account secured by the lowest priority of lien on the property from which the extra payments was obtained. Any balance will be applied to other Agency loans secured by the property from which the extra payment was obtained. (4) For assessment bonds, see paragraph (k) of this section. (g) The place of payments on bonds purchased by the Agency wil

official document · source cfr-2024 · id 7:§ 1780.94