[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1007.50]



[Page 829]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1007_SECTION 184A LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING

--Table of Contents

 

Sec.  1007.50  Certificate of guarantee.



    (a) Approval process--(1) In general. Before HUD approves any loan 

for guarantee under this section, the lender shall submit the 

application for the loan to HUD for examination.

    (2) Approval. If HUD approves the application submitted under 

paragraph (a)(1) of this section, HUD will issue a certificate as 

evidence of the loan guarantee approved.

    (b) Standard for approval. HUD may approve a loan for guarantee 

under this part and issue a certificate under this section only if HUD 

determines that there is a reasonable prospect of repayment of the loan.

    (c) Effect--(1) As evidence. A certificate of guarantee issued under 

this part by HUD shall be conclusive and incontestable evidence in the 

hands of the bearer of the eligibility of the loan for guarantee under 

this part and the amount of that guarantee.

    (2) Full faith and credit. The full faith and credit of the United 

States is pledged to the payment of all amounts agreed to be paid by HUD 

as security for the obligations made by HUD under this section.

    (d) Fraud and misrepresentation. This section may not be construed:

    (1) To preclude HUD from establishing defenses against the original 

lender based on fraud or material misrepresentation; or

    (2) To bar HUD from establishing regulations that are (on the date 

of issuance or disbursement, whichever is earlier) partial defenses to 

the amount payable on the guarantee.