Sec. 05.06.02.12. Insurance Reserves

A. The Fund may not permit more than 10 percent of its multi-family reserve to be committed for insurance of bridge loans under this regulation.

B. Subject to §C of this regulation, the Fund may insure bridge loans from the multi-family reserve or any other monies of the Fund as may be restricted for that purpose. However, the Fund may not:

(1) Issue insurance under this section payable from the multi-family reserve in an aggregate principal amount greater than 8 times the amount of the multi-family reserve available for insurance of bridge loans; and

(2) Insure from any source more than an aggregate of $30 million of bridge loans that are not secured by a mortgage.

C. The Fund shall insure a bridge loan during construction and initial rent-up from restricted funds in the operating fund and may, at its election, insure the bridge loan from the multifamily reserve upon completion of construction and initial rent-up.