[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3560.65]



[Page 493]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.65  Reserve account.



    To meet major capital expenses of a housing project, borrowers must 

establish and fund a reserve account that meets requirements of Sec. 

3560.306. At a minimum, the borrower must agree to make monthly 

contributions to the reserve account at the rate of 1 percent annually 

of the amount of the total development cost until the reserve account 

equals 10 percent of the total development cost.