StacksVerified U.S. regulatory reference

24 CFR §242.77

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
The hospital must be free and clear of all liens other than the insured mortgage, except that the property may be subject to a lien as provided by terms and conditions established by HUD, as follows:
  1. (a)An inferior lien made or held by a federal, state, or local government instrumentality;
  2. (b)An inferior lien required in connection with a supplemental loan insured pursuant to section 241 of the Act;
  3. (c)An inferior or superior lien on equipment as may be approved in connection with an equipment leasing program approved by HUD;
  4. (d)An inferior or superior lien on accounts receivable as approved by HUD as collateral for a line of credit or other borrowing by a hospital insured under this part that has extraordinary needs such as cash flow difficulties; or
  5. (e)Similar liens otherwise approved by HUD.