Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 340 - LOANS TO LENDING INSTITUTIONS › Subpart B - LOANS TO LENDING INSTITUTIONS › Section 340.204 - Lending Institution's Loan Approval Process

Current through Register Vol. 48, No. 28, July 12, 2024
It shall be the obligation of the Lending Institution
				  to:
a) Approve or reject each
				application for a construction, acquisition, improvement or rehabilitation
				loan, as provided in Section
				340.205;
b) Determine the amount of money to be loaned
				to each Loan Recipient. The Lending Institution shall base the amount of the
				loan on a review of the following costs, which shall be submitted on a loan
				application, and compared to the costs of similar construction, acquisition,
				improvement or rehabilitation developments in the area. The cost items are:
				design architect's fees; supervisory architect's fees; legal, accounting and
				other organizational fees; survey and appraisal fees; marketing costs;
				consulting and purchasing agent fees; construction interest, insurance costs;
				real estate and other taxes; title and recording fees; construction costs;
				financial contingency and construction contingency costs; relocation costs;
				off-site improvements; land costs; carrying charges; and other costs directly
				related to the construction of the Development;
c) Act upon a loan application in writing by
				either issuing or declining to issue a loan commitment within 120 days of
				receipt of all loan data; provided, however, this period may be extended for a
				definite period of time upon the mutual written consent of the
				parties;
d) Make all disbursements
				no later than 3 years after the issuance of a loan commitment to a Loan
				Recipient, provided the Loan Recipient has complied with all requirements set
				forth in the loan commitment. The Authority shall make its determination of the
				Lending Institution's compliance, taking into consideration circumstances
				beyond the control of the Lending Institution, including, but not limited to,
				strikes, lockouts, fires, and natural disasters.
e) Charge an interest rate not exceeding the
				yield paid on 30 year Government National Mortgage Association (GNMA) mortgage
				certificates as of the date of the adoption of the resolution by the
				Authority's Members for funding of that particular loan to the Lending
				Institution. However, if the Authority issues its bonds or notes to finance the
				loan to the Lending Institution, the effective interest cost to the Authority,
				plus the Authority's fees and charges, shall be the interest charged by the
				Authority to the Lending Institution; and
f) Require each Loan Recipient to execute and
				deliver a note and such documents as shall be necessary to secure and evidence
				the transaction, including, but not limited to, a mortgage, assignment of
				mortgage, security agreement, financing statement, collateral assignment of
				beneficial interest in a land trust, or by delivery of an irrevocable
				commercial letter of credit, or other instrument acceptable to the Authority
				securing payment of the note executed by the Loan Recipient, in an aggregate
				amount not less than 100% of the outstanding principal balance of the loan,
				which shall be retained until the loan is paid off.