Md. Code Regs. 05.06.02.07

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

Section 05.06.02.07 - Collateral

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.

Md. Code Regs. 05.06.02.07