SPIRO T. AGNEW, Governor                        1285

INTEREST RECEIVED FROM the investments during the period
covered by the report.

266X.

(a)    Notwithstanding any provisions of any rule at common law
or any general or special law, mortgages insured by the Authority
under this subtitle and participations therein are hereby made legal
investments for all insurance companies, trust companies, banks, in-
vestment companies, savings banks, building and loan associations,
credit unions, savings and loan associations, executors, administra-
tors, guardians, conservators, trustees and other fiduciaries, pension,
profit-sharing, and retirement funds.

(b)    Any mortgage insured by the Authority shall MAY be fully
negotiable, and the insurance agreement between the Authority and
the mortgagee shall inure to. the benefit of any purchaser, assignee or
other holder of any mortgage so negotiated.

266Z.

(a)    If from time to time in the opinion of the Authority the
addition of moneys to the mortgage insurance fund is SHALL BE
required [to meet obligations], the Authority in writing shall request
the [Governor] Board of Public Works to provide sufficient moneys
[for this purpose] to maintain its reserve at a level deemed adequate
by the Authority,. [The Governor may submit this request to the next
regular session of the General Assembly, as an item of appropriation
in the Budget Bill.] and upon receipt of such request, said Board
may pay over the amount so requested from its Emergency Fund.

(b)    In the event the Board of Public Works does not have suffi-
cient funds available to meet the request or elects not to make pay-
ment from the Emergency Fund, the Board shall issue a State loan
in the amount deemed adequate by the Authority to meet its obliga-
tion SUFFICIENT TO MEET ALL OBLIGATIONS UNDERTAKEN
BY THE AUTHORITY IN THE INSURANCE OF MORTGAGES
PURSUANT TO THIS SUBTITLE, SUCH STATE LOAN to be
known as the "State Industrial Development Loan Fund" not to
exceed in the aggregate the sum of thirty million dollars
($30,000,000).

(c)    The certificates evidencing said loan may be issued all at one
time or, in groups, from time to time, as hereinafter provided. All
of said certificates evidencing said loan, or any group thereof, are
SHALL BE issued according to what is known as the serial annuity
plan so worked out as to discharge the principal represented by said
certificates within fifteen (15) years from the time of its issue; pro-
vided, however, that it is not necessary to provide for the redemption
of any part of the principal represented by any certificates for the
first two (2) years from the time of the issuance of said certificates.

(d)    The Board of Public Works is hereby authorized and em-
powered to pass a resolution, or resolutions from time to time, deter-
mining and setting forth:

(1) The proportion of the total loan authorized by this act which
is issued at any particular time.