Parity lien.

CFR · 2024-01-01 · US · Title 7

In order for the Agency to agree to a parity lien position, the borrower must submit a written request to the servicing office. (a) The written request for parity must contain the following items: (1) An explanation of the purpose of the request for parity; amount of loan for which parity is requested; description of security property; type of security instrument; name and address of financial institution requesting the transaction; and other information determined necessary by the servicing official to evaluate the request. (2) Current financial statements or an audit, if available or determined necessary by the servicing official. (3) An annual operating budget which projects income and expenses for a typical year's operation. If construction is involved, the budget must be projected through the first full year of operation following completion of the planned improvements. (4) A copy of the proposed security instrument. (5) A certification from the borrower that the Agency debt cannot be refinanced at reasonable rates and terms. (6) An appraisal, when the primary security is real estate or determined necessary by the servicing official in order to determine the adequacy of loan security or repayment ability. (7) A certification that any development work will comply with subpart C of part 1780 of this chapter. (b) Requests for parity must comply with requirements of paragraph (a) of this section, requirements as specified (c) If the borrower has met all of the requirements i

official document · source cfr-2024 · id 7:§ 1782.17