Regulation .07 Collateral.

Bridge loans shall be secured by:

A pledge of the investor's note or notes or other instruments evidencing the investor's obligations to make capital contributions; and

One or more of the following:

(1)

A mortgage on the project, which may be subordinate to mortgages securing new or existing debt on the project;

(2)

A guaranty of payment equal to the insured amount of the bridge loan, backed by assets of quality and liquidity satisfactory to the Fund;

(3)

A guaranty of completion of the project; or

(4)

Such other collateral as the Fund deems appropriate related to the risk of the bridge loan and the project and other factors it deems relevant.