SECTION 200:10-5-7. Proscribed activities

  The Fund will not undertake to provide Insurance for any of the following purposes except as set forth in this section.

(1)   Retail facilities. The Fund will not provide Insurance to facilities that are primarily a retail activity selling goods or services to the general public entering on the premises, unless such retail facilities are functionally related and subordinate to another activity eligible for Insurance.

(2)   Commercial real estate developments. The Fund will not provide Insurance for facilities that are primarily commercial real estate development for speculative investment purposes. As used in this paragraph, "Speculative" means a facility where less than seventy-five percent (75%) of the proposed space is subject to a lease with a term at least equal to the term of the underlying loan or subject to an agreement with a committed buyer; provided, however, the lessee(s) or buyer(s) of such space will be subject to a determination of insurability by the Credit Officer.

(3)   Wholesale facilities. The Fund will not provide Insurance to facilities that are primarily a wholesale activity selling goods or services to the general public entering on the premises, or selling goods or services to retail establishments, unless such wholesale facilities are functionally related and subordinate to another purpose eligible for Insurance. This proscription will not apply to a Distribution Center Facility.

(4)   Medical clinics and professional office space. The Fund will not provide Insurance for medical clinics or professional office space unless it is demonstrated by sufficient evidence that the subject community would be deprived of essential professional services without such Insurance support.