2318

LAWS OF MARYLAND

[Ch. 409

(3) IN ORDER TO FURTHER ASSURE THAT THE
PROGRAM DOES NOT INFRINGE ON THE PRIVATE MORTGAGE MARKET,
TO CAUSE MORTGAGES TO BE ASSIGNED TO, OR IN APPROPRIATE
CASES REFINANCED BY, PRIVATE PERSONS AND FINANCIAL
INSTITUTIONS. FOR THIS PURPOSE, MORTGAGES SHALL BE SO
WRITTEN AS TO PERMIT THE PREFERRED INTEREST RATE TO BE
PROSPECTIVELY INCREASED TO A HIGHER INTEREST RATE, EITHER
VARIABLE OR STATED, OR TO ACCELERATE AND BECOME DUE, AT A
TIME PRIOR TO NORMAL MATURITY. HOWEVER, THE PREFERRED
INTEREST RATE MAY NOT BE INCREASED, NOR THE MORTGAGE
ACCELERATED UNTIL EITHER FIVE YEARS HAVE ELAPSED FROM
DATE OF ISSUANCE, OR UNTIL THE FINANCIAL CIRCUMSTANCES OF
THE MORTGAGORS HAVE CHANGED SO THAT THEY WOULD NO LONGER
QUALIFY AS ORIGINAL BORROWERS UNDER THE PROGRAM. THE
DEPARTMENT MAY REQUIRE COPIES OF INCOME TAX RETURNS, AND
OTHER INFORMATION FROM OR RELATING TO THE MORTGAGORS, ON
A CONTINUING BASIS, FOR THE PURPOSE OF DETERMINING
WHETHER AN INCREASE OF THE INTEREST RATE, OR ACCELERATION
OF THE MORTGAGE, IS PERMISSIBLE AND WARRANTED.

(4) CAUSE MORTGAGES TO BE INSURED BY
FEDERAL, STATE, OR PRIVATE INSTRUMENTALITIES AT THE
EXPENSE OF THE MORTGAGORS, IF SUCH INSURANCE IS AVAILABLE
AND WOULD FURTHER THE OBJECTIVES OF THE PROGRAM.

(5)    CONTRACT FOR SERVICES RELATING TO ANY
ASPECT OF THE OPERATIONS OF THE PROGRAM IN ACCORDANCE
WITH PROCEDURES REQUIRED BY LAW FOR STATE CONTRACTS.

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

266FF-3. PENALTIES.

WHOEVER 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
LOAN OR ANY ACTION OF THE DEPARTMENT AFFECTING A LOAN
ALREADY MADE, IS GUILTY OF A MISDEMEANOR AND UPON
CONVICTION SHALL BE [[SENTENCED TO A FINE OF]] FINED NOT
MORE THAN $5,000 OR [[IMPRISONMENT FOR]] IMPRISONED NOT
MORE THAN TWO YEARS OR BOTH. ANY MORTGAGOR KNOWINGLY
MAKING OR CAUSING 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
MORTGAGE ON WHICH HE IS LIABLE. THE CRIMINAL PENALTIES
AND ACCELERATION PROVIDED BY THIS SECTION 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.