§ 1808.611. Covenants of Eligible CDFI with respect to Bond and each Bond Loan.
261 words·~1 min read·
/us/cfr/t12/s§ 1808.611·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Eligible CDFI shall covenant in the Bond Loan agreement that it will:
(a)Furnish to the Qualified Issuer, at the Eligible CDFI's expense, certain annual and periodic financial and performance reporting;
(b)Maintain books and records related to the Bond Loan and Secondary Loans, the collateral and the project that is to be financed by Bond Loan proceeds, and allow inspection thereof;
(c)Preserve its corporate existence and Certified CDFI status;
(d)Comply with all laws to which it is subject;
(e)Maintain insurance, as required by the Qualified Issuer, against such risks as would customarily be maintained by commercially reasonable companies in a similar line of business;
(f)Pay and discharge all Federal, State and local taxes;
(g)Ensure proper use of proceeds of the Bond Loan;
(h)Pay all required administrative expenses;
(i)Indemnify the Guarantor, the CDFI Fund, the Qualified Issuer and the Master Servicer/Trustee and their Affiliates;
(j)Collaterally assign all rights, title, and interest in and to Secondary Loan collateral to the Master Servicer/Trustee;
(k)Maintain the collateral;
(l)Enforce the covenants against the Secondary Borrowers;
(m)Be bound, to the extent applicable, to provisions of the Bond Trust Indenture;
(n)Periodically, as directed by the CDFI Fund, furnish certain information designed to measure the impacts of the Bond Loan and the CDFI Bond Guarantee Program;
(o)Periodically, as directed by the CDFI Fund, furnish to the Qualified Issuer and/or the CDFI Fund updates to the Capital Distribution Plan; and
(p)Comply with all other representations and warranties set forth in the Bond Loan documents.