Code of Maryland Regulations
Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Subtitle 06 - HOUSING INSURANCE
Chapter 05.06.02 - Tax Credit Bridge Loan Insurance
Section 05.06.02.07 - Collateral
Universal Citation: MD Code Reg 05.06.02.07
Current through Register Vol. 51, No. 6, March 22, 2024
Bridge loans shall be secured by:
A. A pledge of the investor's note or notes or other instruments evidencing the investor's obligations to make capital contributions; and
B. One or more of the following:
(1) A mortgage on the project, which may be subordinate to mortgages securing new or existing debt on the project;
(2) A guaranty of payment equal to the insured amount of the bridge loan, backed by assets of quality and liquidity satisfactory to the Fund;
(3) A guaranty of completion of the project; or
(4) Such other collateral as the Fund deems appropriate related to the risk of the bridge loan and the project and other factors it deems relevant.
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