1. A. Real property financed by loans insured by the Fund shall:

   1. (1) Have clear and merchantable title acceptable to the Fund;
   2. (2) Conform to all applicable federal, State, and local building, zoning, environmental, health, and housing codes;
   3. (3) Be insured with hazard insurance issued by a company that is approved by the State Insurance Commissioner and, when applicable, flood insurance;
   4. (4) Have an appraised value that is satisfactory to the Fund;
   5. (5) Be secured by a lien against the mortgaged property or other collateral acceptable to the Fund; and
   6. (6) Meet any other standards of the Fund.

2. B. Personal property financed by loans insured by the Fund shall:

   1. (1) Have clear and merchantable title acceptable to the Fund;
   2. (2) Have an appraised value that is satisfactory to the Fund;
   3. (3) Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and
   4. (4) Meet any other standards of the Fund.

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

   1. (1) Be secured by a lien against real property, personal property or other collateral acceptable to the Fund; and
   2. (2) Meet any other standards of the Fund.

Authority: Housing and Community Development Article, §3-207(a), Annotated Code of Maryland

Effective date: March 26, 2018 (45:6 Md. R. 317)