MARVIN MANDEL, Governor

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(4)    CHARGE AND COLLECT REASONABLE
APPLICATION AND PROCESSING FEES, AND OTHER CHARGES, FEES,
OR REIMBURSEMENTS INCIDENTAL TO LOANS;

(5)    ADOPT, AND AMEND FROM TIME TO TIME, IN
ACCORDANCE WITH STATUTORY REQUIREMENTS, REGULATIONS
GOVERNING ALL ASPECTS OF THE OPERATION OF THE PROGRAM.

(F) EVERY PERSON WHO KNOWINGLY MAKES OR CAUSES TO
BE MADE ANY FALSE STATEMENT OR REPORT FOR THE PURPOSE OF
INFLUENCING THE ACTION OF THE DEPARTMENT UPON ANY
APPLICATION FOR A GRANT OR LOAN OR ANY ACTION OF THE
DEPARTMENT AFFECTING A GRANT OR LOAN ALREADY MADE, IS
GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE
FINED NOT MORE THAN $5,000 OR IMPRISONED FOR NOT MORE
THAN TWO YEARS, OR BOTH. EVERY BORROWER WHO KNOWINGLY
MAKES OR CAUSES TO BE MADE SUCH A FALSE STATEMENT OR
REPORT SHALL, AT THE OPTION OF THE DEPARTMENT, AND
WITHOUT REGARD TO THE COMMENCEMENT OR STATUS OF CRIMINAL
PROSECUTION, BE SUBJECT TO IMMEDIATE ACCELERATION OF THE
LOAN FOR WHICH HE IS LIABLE. THE CRIMINAL PENALTIES AND
ACCELERATION PROVIDED BY THIS SECTION SHALL APPLY TO ANY
MATERIAL MISSTATEMENT OF FACT, WHETHER IN THE NATURE OF
AN UNDERSTATEMENT OR OVERSTATEMENT OF FINANCIAL
CONDITION, OR ANY OTHER FACT MATERIAL TO THE DEPARTMENT'S
ACTIONS.

SECTION 2. AND BE IT FURTHER ENACTED, That Sections
257K(a) and (d) of Article 41 — Governor - Executive and
Administrative Departments, of the Annotated Code of
Maryland (1971 Replacement Volume and 1974 Supplement) be
and they are hereby repealed and re—enacted, with
amendments, to read as follows:

Article 41 — Governor — Executive and Administrative

Departments

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
adequate 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