Bridge loans shall be secured by:

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

2. B. One or more of the following:

   1. (1) A mortgage on the project, which may be subordinate to mortgages securing new or existing debt on the project;
   2. (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. (3) A guaranty of completion of the project; or
   4. (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.

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)