2650

LAWS OF MARYLAND

[Ch. 552

§ 462. THE AUTHORITY MAY SPECIFY MINIMUM MATURITIES AND
MAXIMUM INTEREST RATES ON THESE NEW MORTGAGE LOANS, AS
WELL AS TIME PERIODS WITHIN WHICH THE MORTGAGE LENDERS
MUST COMMIT AND CLOSE THESE LOANS.

(B) THE AUTHORITY SHALL REQUIRE SUCH
REPRESENTATIONS, WARRANTIES, AND CONTRACTUAL UNDERTAKINGS
BY THE MORTGAGE LENDERS AS IT DEEMS DESIRABLE IN ORDER TO
ASSURE COMPLIANCE WITH THIS SECTION. THESE
REPRESENTATIONS, WARRANTIES, AND UNDERTAKINGS ARE
ENFORCEABLE BY THE AUTHORITY IN THE CIRCUIT COURT FOR
ANNE ARUNDEL COUNTY; AND, AS A CONDITION TO THEIR
PARTICIPATION IN THE PROGRAMS, THE MORTGAGE LENDERS SHALL
CONSENT TO THE JURISDICTION AND VENUE OF THAT COURT.

[[464. LOAN TO LENDERS PROGRAM.

(A)     THE AUTHORITY IS AUTHORIZED TO MAKE,
PARTICIPATE IN MAKING, AND UNDERTAKE COMMITMENTS TO MAKE
AND PARTICIPATE IN MAKING LOANS TO MORTGAGE LENDERS.
HOWEVER, A LOAN MAY NOT BE MADE TO THE MORTGAGE LENDER
UNLESS THE MORTGAGE LENDER HAS DEMONSTRATED
SATISFACTORILY TO THE AUTHORITY THAT THE LOAN IS IN THE
BEST INTERESTS OF THE PUBLIC.

(B)    EACH LOAN TO A MORTGAGE LENDER SHALL BE A DEBT
OF THE BORROWER, TO WHICH ITS GENERAL ASSETS ARE SUBJECT.
IT SHALL HAVE A MATURITY NOT LONGER THAN THE MATURITY OF
ANY BONDS ISSUED BY THE AUTHORITY TO THE PAYMENT OF WHICH
IT IS PLEDGED PURSUANT TO ANY AGREEMENT WITH BONDHOLDERS,
AND SHALL NOT BE SUBJECT TO PREPAYMENT ON TERMS LESS
FAVORABLE TO THE AUTHORITY THAN THE TERMS UNDER WHICH THE
AUTHORITY MAY PREPAY THE BONDS TO WHICH THE LOAN IS
PLEDGED.

(C)    EACH LOAN SHALL BEAR INTEREST AT A RATE   TO BE
DETERMINED BY THE AUTHORITY, BUT NOT LESS THAN THE     RATE
OF INTEREST ON THE BONDS ISSUED BY THE AUTHORITY TO   WHICH
IT IS PLEDGED PLUS ONE EIGHTH OF ONE PERCENT.

(D)    BACH LOAN SHALL BE ADDITIONALLY SECURED, AS TO
PAYMENT OF BOTH PRINCIPAL AND INTEREST, BY A PLEDGE OF
AND FIRST LIEN UPON COLLATERAL OF TYPES AND IN AMOUNTS
WHICH THE AUTHORITY DETERMINES TO BE NECESSARY TO ASSURE
PAYMENT OF THE PRINCIPAL AND INTEREST ON THE LOANS AS
THEY BECOME DUE. THE COLLATERAL SHALL CONSIST OF ONE OR
MORE OF THE FOLLOWING:

(1)    DIRECT OBLIGATIONS OF, OR GUARANTEED BY,
THE UNITED STATES OF AMERICA, THE STATE OF MARYLAND, OR A
POLITICAL SUBDIVISION OF THE STATE; OR

(2)   BONDS, [[DEVENTURES]] DEBENTURES, NOTES,
OR OTHER EVIDENCES OF INDEBTEDNESS, SATISFACTORY TO THE