19.4.10.3 Lender’s Certificate

A. The use of bonds and, if paid with loan proceeds, the cost of issuance of the bonds, must be reflected in either the Lender’s Certificate (form HUD-92434M) or the Request for Endorsement of Credit Instrument (Certificate of Lender) (form HUD-92455M). To use short-term, tax-exempt, cash collateralized bonds in connection with 4% Low Income Housing Tax Credits, the Lender must certify that the transaction complies with the National Housing Act. This certification appears as a subsection of both the Lender’s Certificate and Request for Endorsement of Credit Instrument (Certificate of Lender). When bonds are structured as a tax-exempt loan, Lender’s Counsel, subject to review and approval by the HUD Closing Attorney, is authorized to modify the bond terminology used in the applicable HUD certificate to be consistent with the terminology used in the tax-exempt loan documents.