Subordination of Direct Loan Basic Security To Secure a Guaranteed Line of Credit; Correction

This document corrects the amendatory language contained in the final rule published April 24, 1998, regarding approving a subordination of direct loan security when another lender will be making a line of credit guaranteed by the Agency with a Contract of Guarantee-Line of Credit. This correction clarifies that the conditions applicable to a subordination of direct loan basic security do not apply to the subordination of direct loan normal income security. This correction will apply retroactively to those lines of credit approved since the effective date of the final rule.