source:
  type: regulation
  id: usda-hb-3555-12.13
  authority: USDA Technical Handbook HB-1-3555 §12.13 — Lender Requirements
  description: "USDA HB-1-3555 §12.13 (Lender Requirements). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.13-0
  canonical_id: usda-hb-3555-12.13-0
  section: USDA HB-1-3555 12.13 — Lender Requirements
  description: '12.13 Lender Requirements: NDER REQUIREMENTS Approved lenders will be responsible for monitoring
    construction of the subject property, overseeing disbursement of mortgage proceeds, and obtaining documentation
    that confirms the construction of the subject property is complete. By submitting the request for …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.13 — Lender Requirements
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: NDER REQUIREMENTS Approved lenders will be responsible for monitoring construction of the subject
      property, overseeing disbursement of mortgage proceeds, and obtaining documentation that confirms the construction
      of the subject property is complete. By submitting the request for the Conditional Commitment, the lender
      is self-certifying that they have staff with two or more years’ experience making and administering construction
      loans, or
    drafter_attestation: Verbatim from HB-1-3555 §12.13 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.13-1
  canonical_id: usda-hb-3555-12.13-1
  section: USDA HB-1-3555 12.13 — Lender Requirements
  description: '12.13 Lender Requirements: 05-05-25) PN 640 Guidance documents lack the force and effect of law,
    unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any
    guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.13 — Lender Requirements
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. employ a construction loan management
      company with two or more years'' experience as their agent. Lenders are responsible to ensure that builders’
      experience is relevant to the loan type. Repair and renovation experience is not a substitute for experience
      making and administrating new construction loans. The lender must meet the following conditions to offer this
      loan feature: x Lenders will ensure the utilization of a fixed price construction contract; x Conduct investigations
      and obtain documentation to confirm the eligibility of construction contractors/builders, and their construction
      loan management company if they contract one; x Approve construction contractors, construction loan management
      companies, or builders upon submittal and review of evidence the contractor/builder meets requirements set
      forth in'
    drafter_attestation: Verbatim from HB-1-3555 §12.13 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.13-2
  canonical_id: usda-hb-3555-12.13-2
  section: USDA HB-1-3555 12.13 — Lender Requirements
  description: '12.13 Lender Requirements: 2.14 of this Chapter; x Agree to retain evidence of contractor/builder/construction
    loan management company approval for future review by the Agency; x For loans closed prior to commencement of
    construction: o Loans securitized individually may disburse proceeds for the cost of t…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.13 — Lender Requirements
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '2.14 of this Chapter; x Agree to retain evidence of contractor/builder/construction loan management
      company approval for future review by the Agency; x For loans closed prior to commencement of construction:
      o Loans securitized individually may disburse proceeds for the cost of the land, or the balance owed on the
      land, and Agency allowed closing costs. Any balance of the mortgage proceeds, including the “custodial reserve
      account,” must be placed into a reserve account. o Lenders utilizing a warehouse line of credit will not be
      required to disburse all funds at closing nor required to reserve all funds prior to the commencement of construction.
      x Approve and disburse mortgage proceeds in accordance with the construction loan agreement, with prior written
      approval by the borrower and confirmation of work completion prior to disbursement. The lender must maintain
      a draw and disbursement ledger for each single close loan. The lender is representing they meet the criteria
      of this section when requesting a commitment for loan note guarantee.'
    drafter_attestation: Verbatim from HB-1-3555 §12.13 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.13-3
  canonical_id: usda-hb-3555-12.13-3
  section: USDA HB-1-3555 12.13 — Lender Requirements
  description: '12.13 Lender Requirements: 05-05-25) PN 640 Guidance documents lack the force and effect of law,
    unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any
    guidance that is not available through their guidance portal, except to establish historical facts.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.13 — Lender Requirements
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts.
    drafter_attestation: Verbatim from HB-1-3555 §12.13 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
