Sec. 05.06.02.07. Collateral

Latest version.

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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