A Sponsor, or a Sponsor's designated third party, shall meet the following minimum requirements: Be a local government, a group of local governments, a CDO, or a CDFI, except as provided in Regulation .05(C)(2) of this chapter with respect to Neighborhood Intervention Projects; Not have defaulted on any prior financial assistance from the Department; Not be currently barred or suspended from any of the Department's programs; Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; In the case of CDOs or other business entities, be in good standing and qualified to do business in Maryland; and In the case of CDFIs, be certified in compliance with 12 U.S.C. §4702. Any recipient of financial assistance from a Sponsor as permitted under Regulation .04C of this chapter shall satisfy the minimum requirements of §A(2)—(5) of this regulation.