The maximum insurable loan amount that the Fund can insure is 25 percent of the multifamily insurance reserve, unless: Additional collateral is deposited with the Fund in accordance with §B of this regulation; or For projects in which the Fund participates in reinsurance, coinsurance, or shared insurance, the Fund's maximum exposure is 25 percent of the multifamily reserve, with adjustments, if any, calculated in accordance with Regulation .15 of this chapter. A loan may be insured even when the amount of the insurance by the Fund exceeds 25 percent of the multifamily reserve as of the date of making the loan, if the: Principal portion of the loan being insured which is in excess of the reserve amount will be supported by collateral or security acceptable to the Fund in an amount equal to or greater than the excess loan amount; Collateral or security is deposited with or held by the Fund for its benefit in the event of default for such period of time as determined necessary by the Fund; and Acceptable forms of collateral or security are: Cash; Securities of the following types: General obligations of or obligations guaranteed by the federal government, Certificates of deposit or other banking arrangements fully insured by the Federal Deposit Insurance Corporation, or Bonds or other obligations rated in one of the two highest rating categories by a nationally recognized credit rating agency and otherwise acceptable to the Fund; Letters of credit which are irrevocable, unconditional, renewable, transferable, and drawable at sight on an investment-grade, rated financial institution with acceptable combined capital and surplus, with a minimum term and all other provisions acceptable to the Fund; or Other collateral equivalent to that described in §B(3)(a), (b), or (c) of this regulation and otherwise acceptable to the Fund. The Fund may insure two or more loans secured by mortgages on adjacent projects which are under common ownership or sponsorship when the combined loans exceed the maximum insurable loan amount, if the Fund determines in writing that the: Adjacent projects have substantially different risks of insurance loss evidenced by each project having at least one of the following: Federal, State, or local rent subsidies committed to the project for a term of not less than 5 years for not less than 35 percent of the units in the project, or non-rental subsidies which result in at least a 10 percent reduction in the debt service of the loan, or Additional collateral or security deposited with the Fund for its benefit in the event of default, in one of the forms set forth in §B(3)(a), (b), (c), or (d) of this regulation, in an amount which, when added to the borrower's equity, equals 22.5 percent of the Fund-determined value for the second project to be insured; Loan for each adjacent project contains cross-default provisions providing that upon monetary default of one adjacent project the insured lender would be required, at the Fund's election to: Declare a default on either adjacent project, and Operate, sell, or transfer the adjacent project rather than assign the project to the Fund unless the adjacent project itself was in monetary default; and Likelihood of nonpayment of principal, interest, or other sums agreed to be paid to the mortgagee by the mortgagor is no greater than that of similar projects, taking into consideration all relevant factors, including the financial strength and experience of the developer and builder. In the event of a default on a loan insured under the provisions of §B or C of this regulation, the terms of the loan are required to give the insured lender the right to call on any collateral or security provided and apply the proceeds to a reduction in the amount of the insurance claim to be paid by the Fund.