§242.15. Limitation on refinancing existing indebtedness.
24 C.F.R. § 242.15
Some existing capital debt may be refinanced with the proceeds of a section 242-insured loan; however, the hard costs of construction and equipment must represent at least 20 percent of the total mortgage amount.
In the case of a loan insured under Section 242/223(f), there is no requirement for hard costs. However, if there are hard costs, such costs must total less than 20 percent of the total mortgage amount.
Notes, amendments, and revision history
Amendments
[78 FR 8341, Feb. 5, 2013]
Authority
Authority: 12 U.S.C. 1709, 1710, 1715b, 1715n(f), and 1715u; 42 U.S.C. 3535(d).
Source
Source: 72 FR 67546, Nov. 28, 2007, unless otherwise noted.
Amendments
[78 FR 8341, Feb. 5, 2013]