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12.15.2 Release of Letters of Credit

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. In the event of a claim:

  1. Assignment. HUD will not accept an assignment of the letter of credit to HUD from the Lender.

  2. Undrawn Balance. HUD will treat any undrawn balance from a letter of credit or escrow agreement as cash held by the Lender.

  3. Cash equivalent. The Lender must provide cash equal to the undrawn balance if demand on a letter of credit is not met.

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▸Contents — HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)
HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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