[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR510.1]

[Page 7]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 510_SECTION 312 REHABILITATION LOAN PROGRAM--Table of Contents
 
Sec. 510.1  Multi-family property loans.

    (a) In cases in which a corporation is a borrower on a section 312 
loan, the Assistant Secretary for CPD or his designee may require an 
officer of the corporation or a principal stockholder to personally 
guarantee the section 312 loan or to cosign the loan note as a borrower, 
where necessary to make the finding of acceptable risk required for 
assumption of the loan.
    (b) All partners of any partnership which is a borrower on a section 
312 loan shall be personally liable for repayment of the section 312 
loan. Limited partners shall assume personal liability by co-signing the 
loan note as a borrower or by personally guaranteeing the loan.
    (c) Any personal guarantee or endorsement shall not relieve the 
partnership or corporate borrower from securing the section 312 loan by 
a mortgage or deed of trust on the property to be rehabilitated.

[44 FR 21751, Apr. 11, 1979, as amended at 44 FR 47513, Aug. 13, 1979; 
44 FR 55562, Sept. 27, 1979. Redesignated and amended at 61 FR 7061, 
Feb. 23, 1996]