1036                               LAWS OF MARYLAND                        [CH. 714

which shall be used by the Authority as a non-lapsing, revolving fund
for carrying out the provisions of this sub-title. To this fund shall
be charged any and all expenses of the Authority, including mortgage
insurance payments required by loan defaults and to the fund shall
be credited all receipts of the Authority, including mortgage insurance
premiums and proceeds from the sale, disposal, lease, or rental of
real or personal property which the Authority may receive under
the provisions of this sub-title.

(b) Moneys in the fund not needed currently to meet the expenses
and obligations of the Authority shall be deposited with the treasurer
to the credit of the fund or may be invested in such manner as is
provided for by statute.

266T. Insurance of mortgages.

The Authority, upon application of the proposed mortgagee, may
insure mortgage payments required by a first mortgage on any in-
dustrial project, upon such terms and conditions as the Authority
may prescribe, provided the aggregate amount of principal obliga-
tions of all mortgages so insured outstanding at any one time shall
not exceed thirty million dollars ($30,000,000). To be eligible for
insurance under the provisions of this sub-title a mortgage shall:

(1)  Be one which is made by a mortgagor as defined herein and
held by a mortgagee approved by the Authority;

(2)  Involve a principal obligation, including initial service charges
and appraisal, inspection and other fees approved by the Authority,
not to exceed four million dollars ($4,000,000) for any one project
and not to exceed ninety (90) per cent of the cost of the project (as
defined in Section 266-0) as to real property, nor seventy (70) per
cent of the cost of the project (as defined in Section 266-0) as to
machinery and equipment;

(3)  Have a maturity satisfactory to the Authority but in no case
later than twenty-five (25) years from the date of the insurance
except in the case of machinery and equipment, for which the maturity
is to be no more than fifteen (15) years from the date of the insurance
but in no case beyond the normal useful life of the machinery and
equipment.

(4) Contain complete amortization provisions satisfactory to the
Authority requiring periodic payments by the mortgagor which may
include principal and interest payments, cost of local property taxes
and assessments FOR OR PAYMENTS IN LIEU THEREOF, land
lease rentals if any, hazard insurance on the property, such mortgage
insurance premiums as are required under Section 266U, and such
depreciation payments as may be necessary to maintain the
integrity of the project until principal has been completely
amortized, all as the Authority from time to time prescribes or
approves.

(5) Be in such form and contain such terms and provisions with
respect to property insurance, repairs, alterations, payment of taxes
and assessments OR PAYMENTS IN LIEU THEREOF, default re-
serves, delinquency charges, default remedies, anticipation of ma-
turity, additional and secondary liens, and other matters as the
Authority may prescribe.