Sec. 05.06.09.03. Eligible Property

A. Real property financed by loans insured by the Fund shall:

(1) Have clear and merchantable title acceptable to the Fund;

(2) Conform to all applicable federal, State, and local building, zoning, environmental, health, and housing codes;

(3) Be insured with hazard insurance issued by a company that is approved by the State Insurance Commissioner and, when applicable, flood insurance;

(4) Have an appraised value that is satisfactory to the Fund;

(5) Be secured by a lien against the mortgaged property or other collateral acceptable to the Fund; and

(6) Meet any other standards of the Fund.

B. Personal property financed by loans insured by the Fund shall:

(1) Have clear and merchantable title acceptable to the Fund;

(2) Have an appraised value that is satisfactory to the Fund;

(3) Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and

(4) Meet any other standards of the Fund.

C. Loan to business project for credit, operating costs and administrative costs insured by the Fund shall:

(1) Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and

(2) Meet any other standards of the Fund.