Conditions of guarantee.

CFR · 2024-01-01 · US · Title 7

A loan guarantee under this part will be evidenced by a Loan Note Guarantee issued by the Agency. Each lender will execute a Lender's Agreement. If a valid Lender's Agreement already exists, it is not necessary to execute a new Lender's Agreement with each loan guarantee. (a) (b) (c) (1) (2) (i) Twenty-four months from the closing of the construction loan, if the certificates of occupancy for all units in the project have not been issued by then, or (ii) The date of the issuance of the last certificate of occupancy, if the certificates of occupancy for all units in the project are issued on or before 24 months from the closing of the construction loan. (3) (d) (1) To any holder, 100 percent of any loss sustained by the holder on the guaranteed portion of the loan and on interest due on such portion. (2) To the lender, the lesser of: (i) Any loss sustained by the lender on the guaranteed portion, including principal and up to 90 days of accrued interest as evidenced by the notes or assumption agreements and secured advances for protection and preservation of collateral made with the Agency's authorization; or (ii) The guaranteed principal advanced to or assumed by the borrower and any interest and accrued interest up to 90 days due thereon. (e) (1) For Option 1 under paragraph (c) of this section, the funding schedule for the lease-up reserve and the operating (2) For Option 2 under paragraph (c) of this section, the funding schedule for the lease-up reserve and the operating

official document · source cfr-2024 · id 7:§ 3565.52