Issuance of loan guarantee.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) Completion of environmental review requirements in accordance with 7 CFR part 1970; and (2) Selection of the proposed project for funding by the Agency in accordance with ranking and selection criteria. (c) (1) This guarantee will be subject to the limits contained in subpart B of this part and in the loan closing documentation. (2) In all cases, the lender must obtain one of the following protections: (i) Surety bonding or performance and payment bonding acceptable to the Agency; (ii) An irrevocable letter of credit acceptable to the Agency; or (iii) A pledge to the lender of collateral that is acceptable to the Agency. (3) The lender must verify amounts expended prior to each payment for completed work and certify that an independent inspector has inspected the property and found it to be in conformance with Agency standards. The lender must provide verification that all subcontractors have been paid and no liens have been filed against the property. (d) (1) Certification from the lender stating that the lender or its qualified representative inspected the property and found that the construction meets the Government's requirements for the standards and conditions for housing and facilities in 7 CFR part 1924, subpart A and the standards for site development in 7 CFR part 1924, subpart C, or its successor regulations; (2) Cash flow certification—the lender certifies, in writing, the project's cash flow assumptions are still valid and depict compliance with the s

official document · source cfr-2024 · id 7:§ 3565.303