Nevada Administrative Code (Last Updated: January 6, 2015) |
Chapter319 Assistance to Finance Housing |
LOANS FOR MULTIPLE-UNIT HOUSING AND SITES FOR MOBILE HOMES |
NAC319.715. Credit enhancement.
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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)