NAC319.588. Loans: Purposes; methods of guaranteeing repayment.

     1. The Division may make a loan for:

     (a) The interim financing of the development, construction or rehabilitation of a project;

     (b) The permanent financing of a project; or

     (c) The interim and permanent financing of a project.

     2. Except as otherwise provided in subsection 3, each loan must be:

     (a) Fully insured by a private source of mortgage insurance which is licensed to do business in this State or any other guarantee acceptable to the Division; and

     (b) Secured by a deed of trust on a project in this State.

     3. The Division may accept a partial guarantee of not less than 10 percent of the face value of a loan, if:

     (a) The loan is to finance a project in a rural area of this State;

     (b) It determines that there is a shortage of available low-cost housing in the area;

     (c) It determines that there is a shortage of private lenders willing to finance projects in the area;

     (d) It is the beneficiary of a first deed of trust on the project; and

     (e) It is the assignee of rents on the project.

     (Added to NAC by Housing Div., eff. 4-13-88; A 9-1-89; 8-31-90; R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)