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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 12 - Banks and Banking |
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Chapter VI - Farm Credit Administration |
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SubChapter E - AFFORDABLE HOUSING |
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Part 960 - AFFORDABLE HOUSING PROGRAM |
§ 960.1 - Definitions.
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As used in this part:
Applicant means a person or entity at whose request or for whose account a standby letter of credit is issued.Beneficiary means a person or entity who, under the terms of a standby letter of credit, is entitled to have its complying presentation honored.Confirm means to undertake, at the request or with the consent of the issuer, to honor a presentation under a standby letter of credit issued by a member or housing associate.Document means a draft or other demand, document of title, investment security, certificate, invoice, or other record, statement, or representation of fact, law, right, or opinion that is presented under the terms of a standby letter of credit.Investment grade means:(1) A credit quality rating in one of the four highest credit rating categories by an NRSRO and not below the fourth highest credit rating category by any NRSRO; or
(2) If there is no credit quality rating by an NRSRO, a determination by a Bank that the issuer, asset or instrument is the credit equivalent of investment grade using credit rating standards available from an NRSRO or other similar standards.
Issuer means a person or entity that issues a standby letter of credit.Presentation means delivery of a document to an issuer, or an entity that has undertaken a confirmation at the request or with the consent of the issuer, for the giving of value under a standby letter of credit.Residential housing finance means:(1) The purchase or funding of “residential housing finance assets,” as that term is defined in § 950.1 of this chapter; or
(2) Other activities that support the development or construction of residential housing.
SHFA associate means a housing associate that is a “state housing finance agency,” as that term is defined in § 926.1 of this chapter, and that has met the requirements of § 926.3(b) of this chapter.Standby letter of credit means a definite undertaking by an issuer on behalf of an applicant that represents an obligation to the beneficiary, pursuant to a complying presentation: to repay money borrowed by, advanced to, or for the account of the applicant; to make payment on account of any indebtedness undertaken by the applicant; or to make payment on account of any default by the applicant in the performance of an obligation. The termstandby letter of credit does not include a commercial letter of credit, or any short-term self-liquidating instrument used to finance the movement of goods.