h. If Loan Proceeds not Fully Disbursed

If construction is not fully completed and loan proceeds not fully disbursed, guaranty will apply only to the proper pro rata part of the loan.  To calculate the proper pro rata part of the loan

·   take loan proceeds disbursed for construction purposes

·   add any other payments made to the builder by or on behalf of the veteran

·   take the lesser of the above total or 80 percent of the value of that portion of the construction actually completed, and

·   add any loan disbursements made for the purchase of the land on which the construction is situated.