WILLIAM DONALD SCHAEFER, Governor Ch. 321

issued which are eligible for insurance [under the provisions of this subtitle. For the
purposes of this section, the term "mortgage" includes loans to finance or refinance the
purchase of stock or membership or to rehabilitate units in a cooperative ownership
housing corporation, and the term "housing" includes any ancillary commercial or other
facilities that are related and incidental to the housing and would support the housing.
Fees shall be established for this insurance in an amount calculated to cover
administrative costs for this program as well as payments made where defaults on
mortgages, bonds or notes cause insured losses to the lenders, bondholders or
noteholders. The Department, in its own name or in the name of the Maryland Housing
Fund, may] IN ACCORDANCE WITH § 3-201 OF THIS SUBTITLE;

(2) INSURE AN AGGREGATE AMOUNT .NOT TO EXCEED $30
MILLION OF BRIDGE LOANS FOR A PORTION OF THE DEVELOPMENT
COSTS OF RENTAL HOUSING PROJECTS THAT ARE AWARDED FEDERAL
LOW INCOME HOUSING TAX CREDITS, WHICH LOANS ARE SECURED BY
PERSONAL RATHER THAT REAL PROPERTY;

(3) PROVIDE OTHER FORMS OF CREDIT ENHANCEMENT UPON
SUCH TERMS AS IT MAY PRESCRIBE FOR QUALIFIED LENDERS AND
BORROWERS WHO ARE UNABLE OTHERWISE TO OBTAIN SUCH
ENHANCEMENT IN THE PRIVATE MARKET;

(4) ISSUE OBLIGATIONS IN ANY FORM BACKED BY A POOL OF
MORTGAGES, INCLUDING WITHOUT LIMITATION, SECURITIES,
CERTIFICATES OF PARTICIPATION, GRANTOR TRUSTS,
COLLATERALIZED MORTGAGE OBLIGATIONS, AND PASS THROUGH
CERTIFICATES;

(5) FOLLOWING A DEFAULT UNDER ANY OBLIGATION WHICH
IS INSURED OR OTHERWISE CREDIT ENHANCED UNDER THIS SUBTITLE,
acquire, hold, improve, OPERATE PENDING SALE OR OTHER DISPOSITION,
sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or
encumber real property or any interest therein[.], PERSONAL PROPERTY OR ANY
INTEREST THEREIN, OR ANY EVIDENCE OF INDEBTEDNESS, INCLUDING
PASS THROUGH CERTIFICATES, RESIDUAL INTERESTS OR OTHER
SECURITIES BACKED BY REAL ESTATE OR A MORTGAGE,
NOTWITHSTANDING THE PROVISIONS OF TITLES 10 THROUGH 21 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE; AND

(6) [For] IN CONNECTION WITH any property acquired by the
Department through foreclosure or pursuant to any other payment in settlement for a
claim for loss[, the Department may]:

(I) CONTRACT, IN CONFORMANCE WITH THE STATE LAW
GOVERNING PROCUREMENT, WITH PRIVATE PARTIES FOR SERVICES TO
SECURE, MAINTAIN, OPERATE, OR IMPROVE SUCH PROPERTY IN
ANTICIPATION OF DISPOSITION OF THE PROPERTY; OR

(II) [make] MAKE a mortgage loan to assist in the disposition of the
property.

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