Second Mortgage RequirementsThe second mortgage requirement
second mortgage held. Amount. does not allow a restored first mortgage of any amount. 2. The second mortgage shall be of a nominal amount not exceeding the lower amount: This is the amount of the outstanding amount of the first mortgage immediately before and after the restructuration. The second mortgage must have an interest of at least one per cent, but not more than the federal interest currently in force.
2. The second mortgage must have a maturity corresponding to the first mortgage, if any, which has been amended or repaid. A HUD may stipulate that, if there is no first mortgage, the second mortgage may be continued for a period determined by HUD. For the second mortgage, capital and interest shall be paid only from the net liquidity during the period.
"NPLs" means the part of the revenue of the Projects that will remain after paying all necessary servicing charges on the first mortgage, if any, whether amended or funded, plus paying any overdue capital or interest, and paying all appropriate and necessary running costs (including contributions to the provision for capital replacements) and any other expenditures authorised by HUD.
The entire net residual liquid funds shall be credited to the capital and interest of the second mortgage until full payment and then to each further subordinated mortgage pursuant to § 401.461(c). HUD may cause the second mortgage to be immediately due and payable for the reasons set out in MAHRA's Section 517(a)(4), inclusive of an acceptance of the mortgage in breach of the HUD Standard for the Authorisation of Transfer of Material Goods (if applicable), or if the landlord does not meet other essential HUD requirements after a suitable occasion for the landlord to rectify this error.
HUD shall take into account the change, the transfer to the receiving company or the granting of the second mortgage in whole or in part if: A second mortgage is held by the Secretary; and if the property has been resold or assigned to a lessee organisation or to a charitable or publicly -supported institution supported by the lessee association that complies with the funding rules established by HUD; agrees to accept incremental affordable requirements reasonable for HUD; and demands such change, transfer or waiver.
HUD (c)Additional mortgage to HUD. 1. A reorganisation programme shall oblige the owners to grant HUD an extra mortgage on the property in the amount of i) For the reorganization of a mortgage covered by HUD, not more than the differential between: ii ) For the purpose of reorganising a mortgage owned by HUD, no more than the differential between:
The nominal amount of the second mortgage. HUD may authorise a scheme which does not involve an extra mortgage or which provides for less than the full amount of the mortgage to be paid under the extra mortgage, or which allows for a later amendment, transfer or granting of the extra mortgage in any of the following circumstances:
HUD has authorised the amendment, transfer or granting of the second mortgage in accordance with subsection (b)(5) of this Section. 3. With regard to the second mortgage referred to in subparagraph (a) of this Section, any supplementary mortgage: i) be prioritised to a junior; iii) not require cash until the second mortgage is paid, at which point it will be due at the request of HUD or as otherwise arranged by HUD.