Change in obligor by reason of previous obligor’s death.

The obligor on the loan is generally the person responsible for paying the loan. If a loan met requirements 1 through 5 at the time it was originated by a previous obligor, and you became the obligor by reason of a previous obligor’s death, interest paid by you on the loan is generally QPVLI if the loan continues to be secured by a first lien on the purchased APV. A change in obligor by reason of a previous obligor’s death could occur, for example, when you inherit an APV subject to a loan originated by the person who died. See Proposed Regulation section 1.163-16(d)(5).