24 CFR Part 510
Part 510—Section 312 Rehabilitation Loan Program
Housing and Urban Development · Chapter V, Chapter V—Office of Assistant Secretary for Community Planning and Development, Department of Housing and Urban Development · Subchapter B
24 CFR Part 510 - Words
- 144
- Sections
- 1
- Last amended
- December 20, 2016
24 CFR Part 510
Text as published by eCFR on .
PART 510—SECTION 312 REHABILITATION LOAN PROGRAM
79 FR 51895, Sept. 2, 2014, unless otherwise noted. Redesignated at 79 FR 51895, Sept. 2, 2014.
§ 510.1 Multi-family property loans.
(a) In cases in which a corporation is a borrower on a section 312 loan, the Assistant Secretary for CPD or his designee may require an officer of the corporation or a principal stockholder to personally guarantee the section 312 loan or to cosign the loan note as a borrower, where necessary to make the finding of acceptable risk required for assumption of the loan.
(b) All partners of any partnership which is a borrower on a section 312 loan shall be personally liable for repayment of the section 312 loan. Limited partners shall assume personal liability by co-signing the loan note as a borrower or by personally guaranteeing the loan.
(c) Any personal guarantee or endorsement shall not relieve the partnership or corporate borrower from securing the section 312 loan by a mortgage or deed of trust on the property to be rehabilitated.
[44 FR 21751, Apr. 11, 1979, as amended at 44 FR 47513, Aug. 13, 1979; 44 FR 55562, Sept. 27, 1979. Redesignated and amended at 61 FR 7061, Feb. 23, 1996]