1. (a) Except in cases of Force, changes to federal awards will only be processed after the Development is reported to the federal oversight entity as completed and the last of the MFDL funds have been drawn.

2. (b) The Executive Director or authorized designee may approve amendments to loan terms post-closing as described in paragraphs (1) - (3) of this subsection. Board approval is necessary for any other changes post closing.

   1. (1) Changes to the amortization or maturity date to accommodate the requirements of other lenders or maintain parity of term, provided the changes result in the Direct Loan continuing to meet the requirements of §13.8(c)(1) and (3);

   2. (2) Resubordination of the Direct Loan in conjunction with refinancing provided the conditions in subparagraphs (A) - (E) are met:

      1. (A) The Borrower is current with loan payments to the Department, and no notice has been given of any Event of Default on any MFDL loan. Histories of late or non-payment on any other MFDL loan may result in denial of the request;
      2. (B) The refinance does not propose payment of outstanding debt or profit directly to any of the Development Owner or Developer parties (including the Limited Partners);
      3. (C) A proposal for partial or full repayment of the MFDL lien is made with the request; and
      4. (D) The new superior lien is in an amount that is equal to or less than the original senior lien and does not negatively affect the financial feasibility of the Development.
      5. (E) Changes to accommodate refinancing with a new superior lien that is in an amount that exceeds the original senior lien and which will be directly applied to property improvements as evidenced by the loan or security agreements (exclusive of fees associated with the refinance and any required reserves) will be considered on a case by case basis.
   3. (3) Changes required to the Department's loan terms or amounts that are part of an approved Asset Management Division work out arrangement.

Source Note:The provisions of this §13.13 adopted to be effective January 4, 2018, 42 TexReg 7668.