# COMAR 05.04.05.09: COMAR 05.04.05.09. Loan Terms and Requirements for Secured Loans

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_09

## Section

- **Citation:** COMAR 05.04.05.09
- **Heading:** COMAR 05.04.05.09. Loan Terms and Requirements for Secured Loans
- **Jurisdiction:** Maryland
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Maryland Regulations / Title 05 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT / Subtitle 04 SPECIAL LOAN PROGRAMS / Chapter 05 Indoor Plumbing Loan Program / COMAR 05.04.05.09

## Text

A. In addition to the conditions and requirements of Regulations .07 and .08 of this chapter, secured loans shall meet requirements in §§B—D of this regulation.
B. Deed of Trust. The deed of trust shall secure repayment of the loan by the granting of a valid lien on the building.
C. Escrow Account. If there is no prior mortgage requiring the payment of expenses to a mortgagee, the borrower may be required to make monthly expense payments, in escrow, to the Department consisting of 1/12 of annual real estate taxes, ground rent, property insurance premiums and, when appropriate, other items for which payments are required by the Department. Interest need not be paid to borrowers on escrowed monies except as required by law.
D. Title Insurance. The Department, in its discretion, may require the borrower to provide a standard American Land Title Association (ALTA) Loan Policy, with the Environmental Endorsement 8.1, or other form of title policy approved by the Department and the Office of the Attorney General for an amount equal to the maximum principal amount of the loan, insuring the Department, evidencing that title to the building on the date of closing is vested in the borrower, and containing only standard exceptions and encumbrances acceptable to the Department and the Office of the Attorney General.

## Nearby sections

- [COMAR 05.04.05.01 COMAR 05.04.05.01. General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_01.md)
- [COMAR 05.04.05.02 COMAR 05.04.05.02. Objective](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_02.md)
- [COMAR 05.04.05.03 COMAR 05.04.05.03. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_03.md)
- [COMAR 05.04.05.04 COMAR 05.04.05.04. Eligible Borrowers](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_04.md)
- [COMAR 05.04.05.05 COMAR 05.04.05.05. Eligible Building](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_05.md)
- [COMAR 05.04.05.06 COMAR 05.04.05.06. Eligible Improvements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_06.md)
- [COMAR 05.04.05.07 COMAR 05.04.05.07. Loan Terms and Requirements — General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_07.md)
- [COMAR 05.04.05.08 COMAR 05.04.05.08. Loan Terms and Requirements — Deferred Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_08.md)
- [COMAR 05.04.05.09 COMAR 05.04.05.09. Loan Terms and Requirements for Secured Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_09.md)
- [COMAR 05.04.05.10 COMAR 05.04.05.10. Loan Application Process](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_10.md)
- [COMAR 05.04.05.11 COMAR 05.04.05.11. Loan Approval and Disapproval](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_11.md)
- [COMAR 05.04.05.12 COMAR 05.04.05.12. Loan Closing](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_12.md)
- [COMAR 05.04.05.13 COMAR 05.04.05.13. Contractor Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_13.md)
- [COMAR 05.04.05.14 COMAR 05.04.05.14. Construction Process](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_09. Check the current official text before relying on it. Not legal advice.