§ 232.254. Withdrawal of project funds, including for repayments of advances from the borrower, operator, or management agent.
173 words·~1 min read·
/us/cfr/t24/s§ 232.254·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Borrower may make and take distributions of mortgaged property, as set forth in the mortgage loan transactional documents, to the extent and as permitted by the law of the applicable jurisdiction, provided that, upon each calculation of borrower surplus cash (as defined by HUD), which calculation shall be made no less frequently than semi-annually, borrower must demonstrate positive surplus cash, or to the extent surplus cash is negative, repay any distributions taken during such calculation period within 30 calendar days unless a longer time period is approved by HUD.
Borrower shall be deemed to have taken distributions to the extent that surplus cash is negative unless, in conjunction with the calculation of surplus cash, borrower provides to HUD documentation evidencing, to HUD's reasonable satisfaction, a lesser amount of total distributions. To the extent that the provisions of this section are inconsistent with the provisions in a borrower's existing transactional loan documents, including without limitation any HUD-required regulatory agreement, the provisions of the transactional loan documents shall apply. \[77 FR 55136, Sept. 7, 2012\]
Connections1 cite this
Cited by 1 section
register
Citation graph
cites case law
§ 232.254
Withdrawal of project funds, including for repayments of advances from the borrower, operator, or management agent.
Fed. Reg.×1
Cites 0Cited by 1 across 1 source