[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: 24CFR573.2]

[Page 193-194]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 573_LOAN GUARANTEE RECOVERY FUND--Table of Contents
 
Sec. 573.2  Definitions.

    The following definitions are only applicable to loan guarantees 
under this part, and are not criminal definitions.
    Act means ``The Church Arson Prevention Act of 1996'' (Pub. L. 104-
155, approved July 3, 1996).
    Arson means a fire or explosion causing damage to (or destruction 
of) real or personal property that a Qualified Certification Official 
determines, or reasonably believes, to be deliberately set.
    Borrower means an organization described in section 501(c)(3) of the 
Internal Revenue Code of 1986, as amended, whose property has been 
damaged or destroyed as a result of an act of arson or terrorism and 
that incurs a debt obligation to a financial institution for the purpose 
of carrying out activities eligible under his part.
    Financial Institution means a lender which may be a bank, trust 
company, savings and loan association, credit union, mortgage company, 
or other issuer regulated by the Federal Deposit Insurance Corporation, 
the Office of Thrift Supervision, the Credit Union Administration, or 
the U.S. Comptroller of the Currency. A Financial Institution may also 
be a Pension Fund.
    Guarantee means an obligation of the United States Government 
guaranteeing payment of the outstanding principal loan amount, in whole 
or in part, plus interest thereon, on a debt obligation of the Borrower 
to a Financial Institution upon failure of the Borrower to repay the 
debt.
    Guaranteed Loan Funds means funds received by the borrower from the 
Financial Institution to finance eligible activities under this part, 
the repayment of which is guaranteed by HUD.
    Loan Guarantee Agreement means an agreement between a Financial 
Institution and the Secretary detailing the rights, responsibilities, 
procedures, terms, and conditions under which a loan provided by a 
Financial Institution to a Borrower may be guaranteed under section 4 of 
the Act.
    Qualified Certification Official (QCO)-- (1) For the purpose of 
certifying an act of arson. A State or local official authorized to 
investigate possible acts of arson. For the purposes of this definition, 
such an official is authorized to execute an Official Incident Report or 
its equivalent and may be an official or employee of such agencies as 
the local fire department, the local police department, or the State 
Fire Marshall Office or its equivalent. The term ``Qualified 
Certification Official'' also includes HUD, which will consult with the 
Bureau of Alcohol, Tobacco, and Firearms of the Department of the 
Treasury in making its determinations.
    (2) For the purpose of certifying an act of terrorism. The Secretary 
or his designee, in consultation with the Federal Bureau of 
Investigation, shall determine whether an act of violence is a

[[Page 194]]

terrorist act or is reasonably believed to be a terrorist act.
    Section 4 Guaranteed Loan means a HUD guaranteed loan made by a 
Financial Institution to a Borrower for the purpose of carrying out 
eligible activities to address damage or destruction caused by acts of 
arson or terrorism.
    Terrorism means an act of violence causing damage to (or destruction 
of) real or personal property that the Secretary or his designee, in 
consultation with the Federal Bureau of Investigation, determines to be, 
or reasonably believes to be, a terrorist act, as defined by applicable 
Federal law or guidelines.