(2) Revolving loan fund. Pursuant to written policies adopted by a Bank's board of directors, a revolving loan fund sponsor that intends to use AHP direct subsidy in accordance with § 1291.31 shall:

1. (i) Provide audited financial statements that its operations are consistent with sound business practices; and
2. (ii) Demonstrate the ability to re-lend AHP subsidy repayments on a timely basis and track the use of the AHP subsidy.

(3) Loan pool. Pursuant to written policies adopted by a Bank's board of directors, a loan pool sponsor that intends to use AHP subsidy in accordance with § 1291.32 shall:

1. (i) Provide evidence of sound asset/liability management practices;
2. (ii) Provide audited financial statements that its operations are consistent with sound business practices; and
3. (iii) Demonstrate the ability to track the use of the AHP subsidy.