StacksVerified U.S. regulatory reference

42 CFR §57.1510

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
Each loan with respect to which a guarantee is made or interest subsidies are paid under this subpart shall be secured in a manner which the Secretary finds reasonably sufficient to insure repayment. The security may be one or a combination of the following:
  1. (a)A first mortgage on the facility and site thereof.
  2. (b)Negotiable stocks or bonds of a quality and value acceptable to the Secretary.
  3. (c)A pledge of unrestricted and unencumbered income from an endowment or other trust fund acceptable to the Secretary.
  4. (d)A pledge of a specified portion of annual general or special revenues of the applicant acceptable to the Secretary.
  5. (e)Such other security as the Secretary may find acceptable in specific instances.