National CAPLines Authorization Boilerplate - SBA

Selections from the following list always appear
These paragraphs must appear only for all Builder's CAPLines. They are not required for the
other programs. Note: The wizard will automatically select from options d.-m. depending on the
state where project collateral is located. – Refer to Appendices A and B for a list of required
options per state.
d. Any prior lien that is open ended as to future advances must be closed, in writing,
according to applicable state law. The revolving line of credit set out above, if any, must
be limited in writing to the amount stated.
e. Lender must obtain a written agreement from prior lienholders to provide Lender with
[number of days] days' written notice before commencing foreclosure of prior lien.
f. Lender to file a Request for Notice pursuant to state law.
g. Written waiver of homestead required. (Residential property only.)
h. Statement of non-homestead required. (Residential property only.)
i. Written waiver of Business Homestead required if real property collateral is owned by an
individual or an individual and spouse.
j. Lender must obtain from prior lienholders written verification (1) of amount owing on
prior obligation, (2) that Borrower is current on payments, and (3) that prior obligation is
not otherwise in default.
k. Written waiver of redemption rights is required. (Non-residential property only.)
l. Survey, certified to Lender, is required or prior survey and affidavit of no change
acceptable to Lender.
m. Statutory Condition and the Statutory Power of Sale language required.
n. Evidence of title and priority of lien must be based upon:
The following Evidence of Title section
must always appear
Insert only 1 of the following 3 options
(1) ALTA Loan Policy for the maximum insurable value, insuring lender and assigns,
policy to be extended ALTA,
[OPTION - Policy to be without standard survey exception.]
[OPTION - Policy will not contain an M.G.L. Section 21(e) exception unless a
detailed engineering study satisfactory to Lender is submitted prior to closing.]
[MUST APPEAR if R/E located in VT - Policy must provide affirmative
coverage over any environmental contamination on property when publicly issued,
filed, or recorded government documents indicate that environmental contamination
is above federal or state action levels.]
(2) Mortgagee’s Title Policy for the maximum insurable value, insuring lender and
assigns. Such policy must contain no exceptions for parties in possession, mechanic’s
or materialman’s liens, or matters which would be disclosed by an accurate survey.
[OPTION - Policy to be without standard survey exception,]
[OPTION - Policy to be without exception to Homestead, Survey or Taxes,]
SBA Loan Number: [Loan Number] Page 23
SBA Loan Name: [Loan Name] (CAPLines 2012)