1656                             Laws of Maryland                      [Ch. 635

(2) (3) An applicant shall have a gross income less than $8,000
per year from all sources in the household OF SUCH AMOUNT
THAT HE CANNOT REASONABLY SECURE A MORTGAGE
AT EXISTING PRIVATE LENDING RATES AND HAS BEEN
REJECTED FOR A MORTGAGE BY AT LEAST TWO LEADING
LENDING INSTITUTIONS. Each application for a loan shall be
accompanied by an income tax return for the past calendar year,
said return being a certified copy obtained from the Comptroller's
office.

(3) (4) An applicant shall have been a resident of the State of
Maryland for more than seven (7) THREE (3) years prior to date
of application, AND SHALL NOT OWN REAL PROPERTY
OTHER THAN A DWELLING UNIT IN WHICH THE APPLI-
CANT RESIDES OR LOT UPON WHICH THE APPLICANT IN-
TENDS TO BUILD A DWELLING UNIT AT THE TIME OF
APPLICATION.

(c)    Mortgages or deeds of trust held as security for loans made
under this article SUBHEADING which are in default may be fore-
closed by the Authority DIVISION in the same manner as provided
by statute and the Maryland Rules of Procedure for foreclosures

in private transactions. The Authority may employ outside counsel

on a contractual basis to prosecute such foreclosures, and the Au-
thority DIVISION is authorized to take title in its name to any such
property foreclosed, as well as to convey title to such property to
bona fide purchasers thereof.

(d)    Any property mortgaged under this article SUBHEADING
may be transferred. However, should the transferee fail to qualify
under subsection (b) of this section, the mortgage in effect shall be
terminated upon the transfer of the property, and any monies due
under the mortgage shall be repaid to the Authority DIVISION.

3 266FF-3.

(a) The Authority DIVISION has the following additional
powers and authority:

(1)    To have perpetual succession, and to sue or be sued in its
own name and plead and be impleaded.

(2)    To adopt an official seal and alter the same at its pleasure.

(3)    To adopt, promulgate, amend, and repeal by-laws for the
regulation of its affairs and the conduct of its business.

(4) To maintain offices at such place or places within the State as
it determines.

(5) To employ such employees as are necessary for the conduct of
its business. All full-time employees except the Executive Director
are subject generally to the provisions and restrictions of Article
64A of the Annotated Code of Maryland THIS CODE, title "Merit
System," and also to the rights and benefits of Article 73B of the
Code, title "Pensions."

4 266FF-4.

(A) THE DIVISION WILL UTILIZE FEDERAL PROGRAMS
TO THE MAXIMUM EXTENT POSSIBLE.