Md. Code Regs. 24.05.07.12

Current through Register Vol. 51, No. 22, November 1, 2024

Section 24.05.07.12 - Direct Loan Application and Processing Procedures

A. Loan Application. Loan applications shall be made upon standard forms prescribed by the Authority. Each application shall be fully completed and properly executed by the applicant.

B. Processing of Application.

(1) To make a determination of the eligibility of the applicant and the contract in accordance with Regulations .03B(4) and .04 of this chapter, the Authority's staff shall perform an initial review of each application and may also perform a preliminary audit investigation of the applicant's books and records.

(2) The Authority may obtain credit reports and lien and judgment reports and take other appropriate steps to investigate the creditworthiness of the applicant and the applicant's owners and the guarantors and the value of the collateral.

C. Loan Approval. Approval of a direct loan shall be evidenced by a resolution and commitment letter from the Authority to the applicant. The Authority is not obligated to take further action on a direct loan after issuance of a commitment letter until an applicant executes and returns a copy of the executed commitment letter to the Authority.

D. Direct Loan Documents. Direct loan documents may include:

(1) Promissory notes;

(2) Deeds of trust;

(3) Loan and security agreements;

(4) Financing statements;

(5) Assignments of contracts and notices of assignment;

(6) Assignments of life insurance;

(7) Personal and corporate guaranties; and

(8) Other documents the Authority may require.

E. Fees. Each applicant:

(1) Shall pay a $250 application fee;

(2) May also be required to reimburse the Authority for filing fees, the cost of credit reports and appraisals, and other expenses incurred in making the direct loan.

Md. Code Regs. 24.05.07.12

Regulation .12E adopted effective April 16, 1990 (17:7 Md. R. 853)