40 Tex. Admin. Code § 175.54 - Protection of Security Interests
(a) An
approved loan must be secured by a mortgage, deed of trust, or other lien on
the land prior to any disbursement of funds. All paperwork associated with the
note and lien shall be deposited for safekeeping with the board, or as the
board may direct.
(b) The security
for the board's loan will be provided by:
(1)
A first lien mortgage with the board as mortgagee, or the board and a
participating lending institution joining as mortgagees, each receiving the
payment as provided by its note.
(2) Hazard insurance on any improvements
securing the loan. The policy must name the board loss payee in at least the
amount of the board's loan.
(c) The board shall adopt credit,
underwriting, and appraisal standards that protect the best interest of the
program and limit the exposure of the fund to any losses.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.