Virginia Law

Upon issuance of the commitment, the applicant shall direct its attorney to prepare and submit the legal documentation (the "initial closing documents") required by the commitment within the time period specified. When the initial closing documents have been submitted and approved by the authority staff and all other requirements in the commitment have been satisfied, the initial closing of the mortgage loan shall be held. At this closing, the initial closing documents shall be, where required, executed and recorded, and the mortgagor will pay to the authority the balance owed on the processing and financing fees, will make any initial equity investment required by the initial closing documents and will fund such other deposits, escrows and reserves as required by the commitment. The initial disbursement of mortgage loan proceeds will be made by the authority, if appropriate under the commitment and the initial closing documents.

Prior to the financing of the mortgage loan, the executive director shall make the findings, if applicable, required by subsection A of § 36-55.39 of the Code of Virginia.

Prior to the financing of the mortgage loan, the applicant shall, pursuant to subsection B of § 36-55.39 of the Code of Virginia, provide the authority with (i) a copy of the written staff determination received by the applicant from the locality that the development is consistent with current zoning and other land use regulations, (ii) a written certification from the applicant that the locality failed to respond to the applicant's request for a determination described in clause (i) within 30 days as provided in subsection B of § 36-55.39 of the Code of Virginia, or (iii) a copy of any building permit issued by the locality for the construction or rehabilitation of the development.

The actual interest rate on the mortgage loan shall be established by the executive director prior to or at the time of the execution of the deed of trust note at initial closing and may thereafter be altered by the executive director in accordance with the authority's rules and regulations and the terms of such note.

The executive director may require such accounts, reserves, deposits, escrows, bonds, letters of credit and other assurances as he shall deem appropriate to assure the satisfactory construction, completion, occupancy and operation of the development, including without limitation one or more of the following: working capital deposits, construction contingency funds, operating reserve accounts, payment and performance bonds or letters of credit, latent construction defect escrows, replacement reserves, and tax and insurance escrows. The foregoing shall be in such amounts and subject to such terms and conditions as the executive director shall require and as shall be set forth in the initial closing documents.