Md. Code Regs. 05.06.02.06

Current through Register Vol. 51, No. 21, October 18, 2024

Section 05.06.02.06 - Term of Insurance

A. The Fund may insure a bridge loan having a term longer than the term of the Fund's insurance, but the insurance shall expire on the first to occur of the date which is:

(1) One month after the date on which the investor makes the final payment of all scheduled capital contributions to the borrower; or

(2) Five years after closing of the bridge loan.

B. Insurance of the bridge loan shall terminate on the first to occur of:

(1) A change in the terms and conditions of the bridge loan without the prior written approval of the Fund;

(2) Five business days following the date on which the investor has made the final payment of all scheduled capital contributions to the borrower;

(3) Thirty business days after the maturity date of the bridge loan, unless extended with the prior written approval of the Fund;

(4) Repayment in full of the bridge loan;

(5) Payment in full of any claim; or

(6) Expiration of the term of the insurance.

Md. Code Regs. 05.06.02.06