12:07:12:15Participation

process. Once the commissioner has approved the application for participation by the office, the office shall proceed as follows: (1) The office shall issue a commitment to participate advising the lender that the material submitted is approved subject to the completion of all conditions and requirements set forth in the commitment to participate; (2) Concurrent with the loan closing or shortly thereafter, the office and the lender shall execute a participation certificate and agreement. The participation certificate and agreement shall include: (a) The terms of the participation; (b) The terms for the collection of the proceeds and expenses; (c) The servicing fees; and (d) The responsibilities of all parties; (3) The office shall issue a warrant to the lender in the amount of the office's portion of participation. If the construction or inception will cover more than four months, the office may issue a series of warrants totaling the amount scheduled in the participation agreement.

Source: 17 SDR 141, effective March 25, 1991; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.