source:
  type: regulation
  id: usda-hb-3555-12.23
  authority: USDA Technical Handbook HB-1-3555 §12.23 — Construction Draws
  description: "USDA HB-1-3555 §12.23 (Construction Draws). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.23-0
  canonical_id: usda-hb-3555-12.23-0
  section: USDA HB-1-3555 12.23 — Construction Draws
  description: '12.23 Construction Draws: NSTRUCTION DRAWS Draws and disbursements will be managed by the approved
    lender. The lender is required to maintain a draw and disbursement ledger for any loan guarantee request. The'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.23 — Construction Draws
    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: NSTRUCTION DRAWS Draws and disbursements will be managed by the approved lender. The lender
      is required to maintain a draw and disbursement ledger for any loan guarantee request. The
    drafter_attestation: Verbatim from HB-1-3555 §12.23 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.23-1
  canonical_id: usda-hb-3555-12.23-1
  section: USDA HB-1-3555 12.23 — Construction Draws
  description: '12.23 Construction Draws: 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 §12.23 — Construction Draws
    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. borrower and lender will be jointly responsible
      for approving disbursements to the builder during the construction phase. Total disbursements should not exceed
      the value of the realized material cost and the percentage of work in place with the exception of an initial
      disbursement to commence construction. When funds are disbursed, the lender is warranting to Rural Development
      the work was done as specified. The lender will maintain documentation in their file evidencing the work was
      completed for the draw which was disbursed. At a minimum, documentation should include evidence of a third-
      party inspection, signed conditional lien waiver from the contractor/builder, and a title insurance endorsement
      for each draw.
    drafter_attestation: Verbatim from HB-1-3555 §12.23 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
