Iowa Admin. Code r. 261-36.5

Current through Register Vol. 47, No. 13, December 25, 2024

Rule 261-36.5 - Loan guarantee limitations

(1) For a loan amount less than or equal to $500,000, the authority may guarantee up to 50 percent of the loan amount. For a loan amount greater than $500,000, the authority may provide a maximum loan guarantee of up to $250,000.

(2) A project loan must be secured by a mortgage against the project property.

(3) The authority may guarantee loans for up to five years. The authority may extend the loan guarantee for an additional five years if an underwriting review finds that an extension would be beneficial. Extensions are subject to approval by the director.

(4) The loan must not be insured or guaranteed by another local, state, or federal guarantee program.

(5) The loan guarantee is not transferable if the loan or the project is sold or transferred.

(6) In the event of a loss due to default, the loan guarantee proportionally pays the guarantee percentage of the loss to the lender as established in the agreement executed pursuant to rule 261-36.7(15).

Iowa Admin. Code r. 261-36.5

ARC 7956B, lAB 7/15/09, effective 7/1/09

Adopted by IAB January 12, 2022/Volume XLIV, Number 14, effective 12/17/2021