Sec. 05.04.11.19. General Provisions

A. Issuance of Bonds. The Administration may obtain funds for loans to finance projects from any source authorized by law, particularly by issuing bonds payable from revenues of the projects. In the event of any conflict, whether expressly so stated, the rights of sponsors or mortgagors under any mortgage or accompanying agreement with the Administration, which mortgage is financed by notes or bonds issued pursuant to a certificate of authorization or bond resolution, are subject to the rights of holders and owners of the Administration's bonds issued under the authorizing certificate or resolution.

B. Project Selection. The Administration may, in its sole discretion, finance particular projects and decline to finance otherwise eligible projects based on its assessment of the project's overall merit and its merit relative to competing alternatives.

C. Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act or contrary to the provisions of any applicable bond certificate or resolution:

(1) To conform to the requirements of the Internal Revenue Code, the bond documents, and any federal agency in connection with any project with respect to which federal assistance is sought; or

(2) In exceptional circumstances, if, in the written determination of the Secretary, the application of these regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act, and waiver or variance of the specific regulations would not adversely impact the interest of any bond holders under the bond certificate or resolution.

D. False Statements. A sponsor who knowingly makes or causes to be made a false statement or report, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Department's action, is subject to immediate acceleration of the loan, in addition to the criminal penalties authorized by the Act.

E. Delegation. The Secretary may delegate to the Director of the Administration or to any other official or employee of the Department or Administration the authority to execute or approve any program documents or loan documents, including commitments and letters of intent.