J. MILLARD TAWES, Governor                       1035

and make and enter into all contracts, leases, agreements, and ar-
rangements necessary or incidental to the performance of its duties;

(10)  purchase, acquire, or take assignments of notes, mortgages,
and other forms of security and evidences of indebtedness; purchase,
acquire, attach, seize, accept, or take title to any industrial project
by conveyance or, when an insured mortgage thereon is clearly in
default, by foreclosure; and sell, lease, or rent an industrial project
for a use specified in 266-0 or any other use;

(11)    TO ENTER INTO AGREEMENTS TO PAY ANNUAL
SUMS IN LIEU OF TAXES TO ANY MUNICIPALITY, COUNTY,
OR TAXING DISTRICT OF THE STATE IN RESPECT OF ANY
REAL PROPERTY WHICH IS OWNED BY THE AUTHORITY
AND LOCATED IN SUCH MUNICIPALITY, COUNTY, OR TAX-
ING DISTRICT.

(11) (12) do all acts and things necessary or convenient to carry
out the powers expressly granted in this subtitle; provided, however,
that in all matters concerning the internal administrative functions
of the Authority the purchasing procedures of the state relating to
office space, supplies, facilities, materials, equipment, and professional
services shall be followed.

266Q. Restrictions.

(1) No funds of the Authority shall be used in respect to any project
if the completion thereof would result in the removal of an industrial
or manufacturing plant of the project occupant from one area of
the state to another area of the state or in the abandonment of one
or more plants or facilities of the project occupant located within the
state; provided, however, that neither of these restrictions applies
if the Authority determines on the basis of the application before
it that the project is reasonably necessary to discourage the project
occupant from removing such other plant or facility to a location
outside the state or is reasonably necessary to preserve the competi-
tive position of the project occupant in its respective industry.

(2)   NO FUNDS OF THE AUTHORITY SHALL BE USED IN
RESPECT OF ANY PROJECT IF THE AUTHORITY WOULD BE
REQUIRED TO OPERATE, SERVICE OR MAINTAIN THE
PROJECT PURSUANT TO ANY LEASE OR OTHER AGREE-
MENT EXCEPT UPON FORECLOSURE.

266R. Default by a mortgagor.

When a mortgagor does not meet mortgage payments insured by
the Authority by reason of vacancy of its industrial project, the
Authority, for the purpose of maintaining income from industrial
projects on which mortgage loans have been insured by the Authority
and for the purpose of safeguarding the mortgage insurance fund,
may grant the mortgagor permission to lease or rent the property
to a tenant for a use other than that specified in paragraph 3 of
Section 266-0, such lease or rental to be temporary in nature and
subject to such conditions as the Authority may prescribe.

266S. Mortgage insurance fund.

(a) There is hereby created an industrial project mortgage insur-
ance fund, hereinafter in this sub-title referred to as the "fund"