The division may agree to promptly act within its authority to remedy a default on a loan, including proceedings to re-establish the rents/maintenance, provided that the division will not agree to act in a predetermined manner, but must retain discretion to choose the appropriate remedy under the circumstances.

The division may permit the lender to hold, free of encumbrance by the division, certain reserve funds, such as repair and replacement reserves pending completion of capital work, and to encumber those accounts as security for the loan which can be withdrawn without the division's approval in the event of a default.

The division may permit the lender to hold, free of encumbrance by the division, certain escrow funds for payment of debt service, taxes, and insurance, that are normally held in accounts controlled by the division.

The division may modify its procedures for supervision of capital work, which normally includes review of contracts, specifications, bids, change orders, and approval of progress payments in order to insure that the division's participation is not duplicative of another agency's functions, and does not unduly delay completion of the work.