Ch. 321 LAWS OF MARYLAND
[3-204.] 3-205.

(A) The Department shall promulgate such ELIGIBILITY standards for [the
eligibility of] insurance AND OTHER FORMS OF CREDIT ENHANCEMENT TO
BE OFFERED as are reasonable to provide that the insurance AND CREDIT
ENHANCEMENTS shall aid in:

(1) [the]THE financing of [(!)] the purchase, construction, or
rehabilitation [as defined in § 2-302(p) of this article,] of:

(I) [housing] HOUSING PROJECTS; [or (2)]

(II) REHABILITATION PROJECTS;

(III) [energy] ENERGY conservation projects [and];

(IV) [solar] SOLAR energy projects;

(V) PUBLIC PURPOSE PROJECTS; OR

(V) (VI) INFRASTRUCTURE PROJECTS; AND

(2) THE SALE OR OTHER TRANSFER OF AN OBLIGATION,
WHETHER DENOTED AS BOND, NOTE, COLLATERALIZED OBLIGATION,
GRANTOR TRUST, CONDUIT, OR ANY OTHER FORM OF SECURITY OR
OBLIGATION HOWEVER DENOTED, BACKED DIRECTLY OR INDIRECTLY
BY MORTGAGES-OR PAYMENTS DERIVED FROM MORTGAGES.

(B) These standards shall also assure that [the mortgagee] ANY LENDER
BENEFITTING FROM INSURANCE OR OTHER CREDIT ENHANCEMENT
PROVIDED BY THE DEPARTMENT FOR A LOAN MADE BY THAT LENDER is
responsible and able to service the [mortgage] LOAN properly.

[3-206.

(a) In this section, "development costs" has the meaning stated under §

2-203(g) of this article.

(b) Notwithstanding anything to the contrary in this subtitle, the Maryland
Housing Fund may insure 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 than real property.

(c) Insurance issued in accordance with this section may not exceed an
aggregate principal loan amount of $30 million.]

3-206.

(A) THE DEPARTMENT SHALL DEPOSIT FUNDS FOR THE
MARYLAND HOUSING FUND WITH THE STATE TREASURER TO BE HELD
IN SUCH FINANCIAL INSTITUTIONS AS THE TREASURER DEEMS PROPER
AND SHALL BE ACCOUNTED FOR BY THE STATE COMPTROLLER IN A
SPECIAL ACCOUNT KNOWN AS THE "MARYLAND HOUSING FUND". THESE

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