Plain Text Law

Regulation .06 Term of Insurance.

Regulation .06 Term of Insurance.Copy Citation

A.
The Fund may insure a bridge loan having a term longer than the term of the Fund's insurance, but the insurance shall expire on the first to occur of the date which is:
(1)
One month after the date on which the investor makes the final payment of all scheduled capital contributions to the borrower; or
(2)
Five years after closing of the bridge loan.
B.
Insurance of the bridge loan shall terminate on the first to occur of:
(1)
A change in the terms and conditions of the bridge loan without the prior written approval of the Fund;
(2)
Five business days following the date on which the investor has made the final payment of all scheduled capital contributions to the borrower;
(3)
Thirty business days after the maturity date of the bridge loan, unless extended with the prior written approval of the Fund;
(4)
Repayment in full of the bridge loan;
(5)
Payment in full of any claim; or
(6)
Expiration of the term of the insurance.