Regulation .03 Eligible Property.

Real property financed by loans insured by the Fund shall:

(1)

Have clear and merchantable title acceptable to the Fund;

(2)

Conform to all applicable federal, State, and local building, zoning, environmental, health, and housing codes;

(3)

Be insured with hazard insurance issued by a company that is approved by the State Insurance Commissioner and, when applicable, flood insurance;

(4)

Have an appraised value that is satisfactory to the Fund;

(5)

Be secured by a lien against the mortgaged property or other collateral acceptable to the Fund; and

(6)

Meet any other standards of the Fund.

Personal property financed by loans insured by the Fund shall:

(1)

Have clear and merchantable title acceptable to the Fund;

(2)

Have an appraised value that is satisfactory to the Fund;

(3)

Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and

(4)

Meet any other standards of the Fund.

Loan to business project for credit, operating costs and administrative costs insured by the Fund shall:

(1)

Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and

(2)

Meet any other standards of the Fund.