Quiero saber acerca de...

43396

Federal Register / Vol. 86, No. 150 / Monday, August 9, 2021 / Rules and Regulations
b Intermediary certification. At loan closing, the intermediary must certify that:
1 No changes have been made in the intermediarys relending plan except those approved in the interim by the Agency;
2 All requirements in the letter of conditions have been met; and 3 There has been no material change in the intermediary or its financial condition since the issuance of the letter of conditions. If there have been changes, the intermediary must explain the changes to the Agency. The Agency will review the changes and respond in writing prior to loan closing.

lotter on DSK11XQN23PROD with RULES1

769.164

Post award requirements.

a Applicability. Whenever this subpart imposes a requirement on loan funds from the HPRP revolving loan fund, the requirement will apply to all loans made by an intermediary to an ultimate recipient from the intermediarys HPRP revolving loan fund for as long as any portion of the intermediarys HPRP loan remains unpaid.
b Applicability for HPRP loan funds.
Whenever this subpart imposes a requirement on loans made by intermediaries from HPRP loan funds, without specific reference to the HPRP
revolving loan fund, such requirement only applies to loans made by an intermediary using HPRP loan funds, and will not apply to loans made from revolved funds.
c File maintenance. In addition to information normally maintained by lenders in each loan file associated with a relending loan to an ultimate recipient, the intermediary must include a certification and supporting documentation in its file demonstrating that:
1 The ultimate recipient is eligible for the loan;
2 The loan is for eligible purposes;
and 3 The loan complies with all applicable laws, regulations, and the intermediarys HPRP loan agreement.
d Maintenance of HPRP revolving loan fund. For as long as any part of an HPRP loan remains unpaid, the intermediary must maintain the HPRP
revolving loan fund in accordance with the requirements in paragraphs d1
through 11 of this section:
1 All HPRP loan funds received by an intermediary must be deposited into the HPRP revolving loan fund. The intermediary may transfer additional assets into the HPRP revolving loan fund;

VerDate Sep<11>2014

16:04 Aug 06, 2021

Jkt 253001

2 All cash of the HPRP revolving loan fund must be deposited in a separate bank account or accounts;
3 The HPRP revolving loan fund must be segregated from other financial assets of the intermediary, and no other funds of the intermediary will be commingled with the HPRP revolving loan fund;
4 All moneys deposited in the HPRP
revolving loan fund account or accounts will be money from the HPRP revolving loan fund;
5 Loans to ultimate recipients are advanced from the HPRP revolving loan fund;
6 The receivables created by making loans to ultimate recipients, the intermediarys security interest in collateral pledged by ultimate recipients, collections on the receivables, interest, fees, and any other income or assets derived from the operation of the HPRP revolving loan fund are a part of the HPRP revolving loan fund;
7 The portion of the HPRP revolving loan fund consisting of HPRP loan funds may only be used for making loans in accordance with 769.154. The portion of the HPRP revolving loan fund that consists of revolved funds may be used for debt service reserve, approved administrative costs, or for making additional loans;
8 A reasonable amount of revolved funds must be maintained as a reserve for bad debts. The total amount should not exceed maximum expected losses, considering the credit quality of the intermediarys portfolio of loans. The amount of reserved funds proposed by the intermediary requires written concurrence from the Agency. Unless the intermediary provides loss and delinquency records that, in the opinion of the Agency, justifies different amounts, a reserve for bad debts of 6
percent of outstanding loans must be accumulated over 5 years and then maintained; and 9 Any funds in the HPRP revolving loan fund from any source that is not needed for debt service reserve, approved administrative costs, or reasonable reserves must be available for additional loans to ultimate recipients.
i Funds may not be used for any investments in securities or certificates of deposit of over 30-day duration without the Agencys concurrence.
ii The intermediary must make one or more loans to ultimate recipients within 6 months of any disbursement it receives from the Agency. If funds have been unused to make loans to ultimate recipients for 6 months or more, those funds will be returned to the agency
PO 00000

Frm 00016

Fmt 4700

Sfmt 4700

unless the Agency provides a written exception based on evidence satisfactory to the Agency that every effort is being made by the intermediary to utilize the HPRP funding in conformance with HPRP objectives;
10 All reserves and other cash in the HPRP revolving loan fund that are not immediately needed for loans to ultimate recipients or other authorized uses must be deposited in accounts in banks or other financial institutions.
Such accounts must be fully covered by Federal deposit insurance or fully collateralized with other securities in accordance with normal banking practices and all applicable State laws.
Any interest earned on the account remains a part of the HPRP revolving loan fund; and 11 If an intermediary receives more than one HPRP loan, it does not need to establish and maintain a separate HPRP
revolving loan fund for each loan; it may combine them and maintain only one HPRP revolving loan fund.
e Budgets and administrative costs.
The intermediary must submit an annual budget of proposed administrative costs for Agency approval. The annual budget should itemize cash income and cash out-flow.
Projected cash income should consist of, but is not limited to, collection of principal repayment, interest repayment, interest earnings on deposits, fees, and other income.
Projected cash out-flow should consist of, but is not limited to, principal and interest payments, reserve for bad debt, and an itemization of administrative costs to operate the HPRP revolving loan fund.
1 Proceeds received from the collection of principal repayment cannot be used for administrative expenses.
2 The amount removed from the HPRP revolving loan fund for administrative costs in any year must be reasonable, must not exceed the actual cost of operating the HPRP revolving loan fund, including loan servicing and providing technical assistance, and must not exceed the amount approved by the Agency in the intermediarys annual budget.
f Loan monitoring reviews. The Agency may conduct loan monitoring reviews, including annual and periodic reviews, and performance monitoring.
1 At least annually, the intermediary must provide the Agency documents for reviewing the financial status of the intermediary, assessing the progress of using loan funds, and identifying any potential problems or concerns. Nonregulated intermediaries must furnish
E:FRFM09AUR1.SGM

09AUR1