USDA Technical Handbook HB-1-3555 §12.23 — Construction Draws
USDA HB-1-3555 §12.23 (Construction Draws). Gap-fill (verbatim).
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Verbatim provisions from USDA Technical Handbook HB-1-3555 §12.23 — Construction Draws — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
USDA HB-1-3555, Chapter 12, § 12.23 — Construction 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 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 thirdparty inspection, signed conditional lien waiver from the contractor/builder, and a title insurance endorsement for each draw.
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Source of record: https://claudeforcompliance.com/regs/usda-hb-3555-12-23/
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