Common use of Ongoing Requirements Clause in Contracts

Ongoing Requirements. Lender must have: (a) An adequate overall level of capital to ensure stability of business operations; (b) Adequate liquidity to respond to continuing demands for cash; (c) Bonding and insurance to cover business related losses, including directors and officers insurance, business income loss insurance, and bonding to secure cash management operations; (d) Adequate loan loss reserves to cover the Lender's projected losses on the guaranteed loan portfolio; (e) A minimum of two years experience in originating and servicing multifamily loans; (f) A positive record of past performance when participating in federal loan programs; (g) Adequate staffing and training to perform the program obligations; (h) Demonstrated overall financial stability over the past five years; (i) Evidence of reasonable and prudent business practices for management of the program; and (j) Addressed, to the Government's satisfaction, those financial and organizational issues that the Government deems relevant to the Lender's ability to properly originate and service guaranteed loans. The Government agrees to enter into Loan Note Guarantees with the Lender issued pursuant to the regulations for Guaranteed Rural Rental Housing loans and to participate in a percentage of any loss on any such loans not to exceed the amount established in the Loan Note Guarantee. The terms of any Loan Note Guarantee are controlling.