(a) Financing Documents Closing. All financings guaranteed by MARAD must utilize the Financing Documents and incorporate the terms and conditions set forth in the term sheet agreed to by the Applicant. Funding for a Project will not be obligated until the Financing Documents are executed.

(b) Note Closing. All funding for financing through the Program is provided through the issuance of a Note by the Applicant that is purchased by FFB and guaranteed by MARAD. The Note, the Note Purchase Agreement, and all associated documents are standard form templates required by FFB.

(c) Delivery Closing. Unless otherwise agreed to and alternate collateral that is satisfactory to MARAD is provided, MARAD will not guarantee any Note until MARAD receives satisfactory evidence that it holds a Mortgage on one or more Vessels in a Vessel Project or a Mortgage or other security interest in a Shipyard Project as required by § 298.35 of this part. During construction of any new Vessel or any Shipyard Project, a security interest may be perfected by a filing under the Uniform Commercial Code.

(d) Closing schedules. A closing for the execution of the Financing Documents, a Note Closing, and a Delivery Closing may occur simultaneously or separately. FFB requires at least twenty business days' notice for a Note Closing.