NAC319.715. Credit enhancement.  


Latest version.
  •      1. Each project must have adequate credit enhancement from a credit enhancer that is long-term rated AA/Aa, including variable rate transactions. The credit enhancement must:

         (a) Be in the form of a surety bond, Federal Housing Administration mortgage insurance, mortgage-backed security, credit facility, letter of credit or other credit instrument that is acceptable to the Division; and

         (b) Cover the principal of and interest on the bonds through the earlier of:

              (1) The maturity of the bonds; or

              (2) A mandatory tender or redemption date.

         2. If, during the life of the bonds, the sponsor of a project does not renew the credit enhancement, upon the termination of the credit enhancement, the Division shall require a tendering of the bonds.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)