24 C.F.R. PART 510—SECTION 312 REHABILITATION LOAN PROGRAM
Title 24 - Housing and Urban Development
Authority: 42 U.S.C. 1452b and 3535(d).
(a) In cases in which a corporation is a borrower on a section 312 loan, the Assistant Secretary for CPD or his designee may require an officer of the corporation or a principal stockholder to personally guarantee the section 312 loan or to cosign the loan note as a borrower, where necessary to make the finding of acceptable risk required for assumption of the loan. (b) All partners of any partnership which is a borrower on a section 312 loan shall be personally liable for repayment of the section 312 loan. Limited partners shall assume personal liability by co-signing the loan note as a borrower or by personally guaranteeing the loan. (c) Any personal guarantee or endorsement shall not relieve the partnership or corporate borrower from securing the section 312 loan by a mortgage or deed of trust on the property to be rehabilitated. [44 FR 21751, Apr. 11, 1979, as amended at 44 FR 47513, Aug. 13, 1979; 44 FR 55562, Sept. 27, 1979. Redesignated and amended at 61 FR 7061, Feb. 23, 1996]
Title 24: Housing and Urban Development
PART 510—SECTION 312 REHABILITATION LOAN PROGRAM
Section Contents
§ 510.1 Multi-family property loans.
§ 510.1 Multi-family property loans.
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