Marvin Mandel, Governor                          1655

(b) Members of the Authority shall be residents of the State and
shall be persons of ability, experience, and integrity. They may be
removed by the Governor for misfeasance, malfeasance, or wilful
neglect of duty, but only after reasonable notice and a public hearing,

unless the notice and hearing are in writing expressly waived. Each

member of the Authority before entering upon his duties shall take

the constitutional oath of office before the Governor or someone au-

thorized by law to administer oaths, and a record of such oath shall

be filed in the office of the Secretary of State.

(c) Members of the Authority shall not receive any compensation
for their services, but each member shall be reimbursed for his
necessary and proper expenses incurred in the performance of his

duties as such.

266FF-1. THE DIVISION OF HOME FINANCING

(A) THERE IS HEREBY CREATED AS A PART OF THE
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOP-
MENT THE DIVISION OF HOME FINANCING, HEREINAFTER
REFERRED TO IN THIS SUBHEADING AS THE "DIVISION."

(d) (B) The members of the Authority SECRETARY, WITH
THE CONSENT OF THE GOVERNOR shall appoint an Executive
Director, who shall serve at the pleasure of the Authority SECRE-
TARY, be responsible to it HIM, and receive such salary as may be
fixed by the Authority SECRETARY IN THE ANNUAL STATE
BUDGET from time to time; he shall be the chief administrative

officer of the Authority from time to time; he shall be the chief

administrative officer of the Authority DIVISION and the Authority
SECRETARY may delegate to him any of its HIS administrative
powers and authorizations; he shall be a man PERSON of good
character, integrity, and business experience in the field of real estate
or mortgage banking.

2 266FF-2.

(a)    The Authority DIVISION shall have the power and authority
to make loans to disadvantaged and low income citizens of Maryland
to be used to finance homes at a preferred rate of interest. The
interest charged on any loan shall be at the rate of interest which
the State is required to pay for bonds issued to obtain the funds
necessary for the making of the loans herein provided, plus an addi-

tional rate of one quarter of one percent (¼%) to be used to offset

administrative charges INTEREST AT A LEVEL TO MAKE THE
PROGRAM SELF-SUPPORTING. No "points" or other interest
may be charged to either the buyer or seller on any purchase made
under this Act SUBHEADING. Loans made under the provisions of
this article SUBHEADING shall be secured by a first mortgage or
FIRST deed of trust on the property purchased.

(b)    An applicant must meet each of the following conditions, to
be eligible for a mortgage under this section:

(1) AN APPLICANT MUST BE A PURCHASER WHO IN-
TENDS TO RESIDE IN THE DWELLING.

(1) (2) An applicant shall have no previous mortgage in effect
at time of application.