1424                             Laws of Maryland                     [Ch. 669

elected to each of the two Houses of the General Assembly, the same
shall take effect from the date of its passage.

Approved May 24, 1971.

CHAPTER 669
(Senate Bill 658)

AN ACT to add new Section 257K to Article 41 of the Annotated
Code of Maryland (1965 Replacement Volume and 1970 Supple-
ment), title "Governor—Executive and Administrative Depart-
ments," subtitle "Department of Economic and Community De-
velopment," TO FOLLOW IMMEDIATELY AFTER SECTION
257J THEREOF AND to be under the new subheading "Maryland
Housing Fund," to provide a fund for the insurance of mortgages
made to finance the construction of new housing and the purchase
of existing housing, and generally dealing with the administration
of this Fund.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 257K be and it is hereby added to Article 41 of
the Annotated Code of Maryland (1965 Replacement Volume and
1970 Supplement), title "Governor—Executive and Administrative
Departments," subtitle "Department of Economic and Community
Development," TO FOLLOW IMMEDIATELY AFTER SECTION
257J THEREOF AND to be under the new subheading "Maryland
Housing Fund," and to read as follows:

Maryland Housing Fund
257K.

(a)  The General Assembly declares that it is a subject of concern
that many residents of this State are living in substandard housing
and that there exists a shortage of housing at reasonable costs for
various income levels. The General Assembly recognizes that ade-
quate multiple unit and single family housing can, and should, be
provided by private capital under our free enterprise system and in
accordance with sound investment practices. The General Assembly
finds that the flow of private investment capital into such housing
can be stimulated by a system wherein qualified lending institutions
may be insured against losses incurred as a result of nonpayment
of principal, interest, or other sums agreed to be paid under the
terms of any note or bond or other evidence of indebtedness. In
furtherance of such State interest, there is established a Maryland
Housing Fund.

(b)  The Department of Economic and Community Development
shall manage and supervise the Maryland Housing Fund. The Fund
shall be deposited with the State Treasurer to be held in such banks
as he deems proper and shall be accounted for by the State Comp-
troller in a special account known as the "Maryland Housing Fund."
The Fund shall be invested and reinvested in the same manner as
other state funds. The Fund shall be used to insure mortgages
accepted by the Department under the provisions of this subtitle.
SUBHEADING.