1. 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. (1) One month after the date on which the investor makes the final payment of all scheduled capital contributions to the borrower; or
   2. (2) Five years after closing of the bridge loan.

2. B. Insurance of the bridge loan shall terminate on the first to occur of:

   1. (1) A change in the terms and conditions of the bridge loan without the prior written approval of the Fund;
   2. (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. (3) Thirty business days after the maturity date of the bridge loan, unless extended with the prior written approval of the Fund;
   4. (4) Repayment in full of the bridge loan;
   5. (5) Payment in full of any claim; or
   6. (6) Expiration of the term of the insurance.

Authority: Housing and Community Development Article, §§3-203 and 3-206, Annotated Code of Maryland

Effective date: April 30, 1990 (17:8 Md. R. 976)

Regulation .03A amended effective February 1, 1993 (20:2 Md. R. 111)

Chapter revised effective October 20, 2008 (35:21 Md. R. 1823)