NAC319.822. Requirements for loan.

Each loan to conserve energy which the Division purchases under the program must:

     1. Be insured by the Federal Housing Administration or by private insurance which guarantees the mortgage or must be guaranteed by the Veterans’ Administration; and

     2. Provide, to the extent allowed by any federal or state law or regulation, that:

     (a) The loan may be assumed only by an eligible borrower; and

     (b) If the borrower rents the dwelling unit to another person without the consent of the Administrator or otherwise fails to occupy the unit as his or her principal residence, the Administrator will:

          (1) Accelerate the rate of interest to the prevailing rate at the time the loan was made; or

          (2) Accelerate to maturity the balance of the payments on the loan.

     (Added to NAC by Housing Division, eff. 12-16-82)