Section 340.205  Loan Approval

A Loan Recipient must make application, in writing, submitting such information as is necessary for review by the Lending Institution.  In determining whether to approve or reject a loan for such Loan Recipient, the Lending Institution, while exercising the standards and practices of a prudent lender, shall consider, but not be limited to, the following information:

a)         the financial resources, financial statements, credit history, employment history, business experience, and credit worthiness of the Loan Recipient;

b)         the type, scope, size and cost of the proposed new construction, acquisition, improvement or rehabilitation of the Development;

c)         the requirements of State and federal laws applicable to Lending Institutions, as defined in the Act;

d)         the applicability of local housing codes and zoning laws;

e)         the Loan Recipient's past record and experience in successfully completing developments of a similar type, scope, size and cost;

f)         whether the fair market value of the proposed Development as improved meets or exceeds the amount of the loan; and

g)         the ability of the proposed Development to generate sufficient revenue to pay operation, maintenance and debt service costs, and other expenses directly related to the Development.