24 CFR 242.15 - Limitation on refinancing existing indebtedness.
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(a) 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.
(b) 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.
[78 FR 8341, Feb. 5, 2013]
Title 24 published on 2014-04-01.
No entries appear in the Federal Register after this date, for 24 CFR Part 242.