RD 3565-2 Conditional Commitment

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Form 3565-2
(Rev. 06-11)

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UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL HOUSING SERVICE (RHS)

FORM APPROVED
OMB NO. 0575-0174

CONDITIONAL COMMITMENT
(Multifamily Housing)

TO: Lender

Case No.

Lender's Address

State

Borrower

Principal Amount of Loan

From an examination of information supplied by the Lender and other relevant information, it appears that the transaction can properly be
completed.
Therefore, the United States of America acting through the United States Department of Agriculture (''Government'') hereby agrees that, in
accordance with applicable provisions of the regulations, it will execute Form RD 3565-4, ''Loan Note Guarantee,'' subject to the conditions
and requirements specified in the regulations and herein.
The Lender will pay the Loan Note Guarantee fee to the Government in the amount specified in the regulations on the date the Loan Note
Guarantee is issued. If the loan is to receive interest credit, the interest rate for the Promissory Note is no more than
1/
basis points above the Long Term Monthly Applicable Federal Rate at loan closing.
A Loan Note Guarantee will not be issued until the Lender certifies that there has been no adverse change in the Borrower's financial or
other condition, during the period of time from the Government's issuance of this Agreement to issuance of the Loan Note Guarantee
regardless of the cause of the change or whether it was within the Lender's or Borrower's control. If tax credits are being used in
conjunction with the guaranteed loan, the Lender certifies that the Borrower is in compliance with the tax credit agreement. The Lender's
certification must address all adverse changes and be supported by financial statements of the Borrower and its guarantors executed not
more than 60 days before the time of certification. As used in this paragraph only, the term ''Borrower'' includes any parent, affiliate, or
subsidiary of the Borrower.
Lender will use one of the three types of loan guarantees set forth at 7 CFR §3565.52 (c). If a continuous guarantee, per 7 CFR
§ 3565.52 (c)(3), is used, all items required under 7 CFR § 3565.303(f) must be submitted and approved by the Agency by
(Insert Date)/6
Use restriction. The Lender will assure that, for the original term of the guaranteed loan, the rental housing remains available for
occupancy by low an moderate income households, in accordance with 7 CFR 3565.352. This requirement will be included in a deed
restriction. The restriction will apply unless the housing in acquired by foreclosure or an instrument in lieu of foreclosure, or the
Government waives the applicability of this requirements for reasons authorized in 7 CFR part 3565, subpart H.
A Regulatory Agreement as provided in 7 CFR part 3565, subpart A, must be executed at the time of closing. As a condition of the
guarantee, the Lender must certify annually to the Rural Housing Service or its successor agency (Agency) that the Borrower is in
compliance with the Regulatory Agreement and program requirements with respect to all aspects of project management. The Lender
certifies it has approved the Borrower's management plan and assures that the Borrower is in compliance with Agency standards
regarding property management, including the requirements contained in 7 CFR part 3565, subparts E and F.
In the event of the Government's failure to issue a guarantee and it is found to be in breach, the Lender's remedy is limited to a suit for the
guaranteed portion of principal and interest which ultimately remains unpaid.
This Agreement becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 calendar days from the
date of issuance by the Government.

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The
valid OMB control number for this information collection is 0575-0174. The time required to complete this information is estimated to average 15 minutes per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information.

Position 2

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Form 3565-2 (Rev. 6-98)

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As a condition of the guarantee, the Lender must certify that the Borrower constructed and operates the complex in accordance with the
applicable civil rights laws and Fair Housing Amendments Act of 1988 (FHAA). The Lender must also certify compliance with Title VI of
the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973 when interest credit assistance is provided.
Lenders who intend to have the GRRHP loan securitized by Ginnie Mae must certify, in writing, that the guaranteed loan amount shall
not be greater than
2/ total development cost.
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are contained
in the Application for Loan and Guarantee. Once this Agreement is executed and returned to the Government, no major change of
conditions or approved loan purpose as listed on the application forms will be considered. Additional conditions and requirements
including source and use of funds: 3/

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calendar days from the date signed by the Government, the
If the conditions set forth in this Agreement are not met within
Government may discontinue processing the application and terminate its commitment. If the Government decides to terminate this commitment, it will provide the Lender a written notice at least 14 calendar days prior to termination. 4/

UNITED STATES OF AMERICA
By:
Date:
(Title)

ACCEPTANCE OF CONDITIONS
To: USDA 5/

The conditions of this Conditional Commitment, including attachments, are acceptable and the undersigned intends to proceed with the
loan transaction and request issuance of a Loan Note Guarantee within
days.

(Name of Lender)
Date:

By:
(Signature for Lender)

Date:
(Signature for Borrower)

1/ Insert basis points for loans with interest credit awards only.
2/

State Office will complete based on guidance in Chapter 4, Paragraph 4.15 C. in HB-1-3565.

3/

Insert any additional conditions or requirements in this space or on an attachment referred to in this space; otherwise, insert
"NONE".

4/

USDA will determine and insert the # of days by which conditions should be met. In can be no more that 720 days or 24 months.
(unless extension is granted).

5/

Lender returns completed and signed copy of this form to USDA issuing office.

6/

Insert date when items must be submitted to the Agency.

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