Loan closing.

CFR · 2024-01-01 · US · Title 7

(a) (1) Provide evidence that an Agency-approved accounting system is in place; (2) Execute a restrictive-use contract acceptable to the Agency that establishes the borrower's obligation to operate the housing for program purposes for the term of the Agency loan; (i) For all section 514 loans, except as provided in § 3560.621, made pursuant to a contract entered into on or after the effective date of this regulation, the following language will be included in the mortgage and deed of trust: “The borrower and any successors in interest agree to use the housing for the purpose of housing people eligible for occupancy as provided in sections 514 and 516 of title V of the Housing Act of 1949, and Rural Housing Service regulations then in effect. The restrictions are applicable for a term of 20 years from the date on which the last loan was closed. No eligible person occupying the housing will be required to vacate nor any eligible person denied occupancy for housing prior to the close of such period because of a prohibited change in the use of the housing. A tenant or person wishing to occupy the housing may seek enforcement of this provision as well as the Government.” (ii) All other loans are subject to restrictive-use provisions as outlined in subpart N of this part. (3) Provide evidence that construction financing arrangements are adequate when interim financing is going to be used; (4) Provide evidence that all the funds from other sources as proposed in the application are

official document · source cfr-2024 · id 7:§ 3560.72