MARVIN MANDEL, Governor

2653

FLOW THEREFROM, TOGETHER WITH OTHER ESTIMATED FUNDS OF
THE AUTHORITY WILL BE SUFFICIENT FOR THE AUTHORITY:

(1)    TO PAY PRINCIPAL, INTEREST, AND ANY
SINKING FUND PAYMENTS ON THE BONDS ISSUED BY THE
AUTHORITY TO WHICH THE HOME MORTGAGE LOANS ARE PLEDGED AS
AND WHEN THEY BECAME DUE; AND

(2)   TO PAY OR COVER ALL FEES AND EXPENSES FOR
SERVICING THE HOME MORTGAGE LOANS; AND

(3)    TO COVER ADMINISTRATIVE EXPENSES AND
PROVIDE REASONABLE RESERVES FOR THE SECURITY OF THE
BONDS.

(D)   THE AUTHORITY SHALL, UNLESS IT DETERMINES THAT
IT IS NOT FEASIBLE TO DO SO, ENTER INTO SERVICING
AGREEMENTS WITH MORTGAGE LENDERS OR OTHER PERSONS
COMPETENT TO SERVICE MORTGAGE LOANS, FOR THE SERVICING OF
THE HOME MORTGAGE LOANS PURCHASED BY IT OR IN WHICH IT
PARTICIPATED. THE AUTHORITY MAY PAY A REASONABLE
SERVICING FEE NOT IN EXCESS OF THE FEES GENERALLY CHARGED
FOR SUCH SERVICES.

(E)     ANY AGREEMENT UNDER WHICH THE AUTHORITY
PARTICIPATES IN THE MAKING OF NEW HOME MORTGAGE LOANS OR
PURCHASES LESS THAN AN ENTIRE INTEREST IN A HOME MORTGAGE
LOAN SHALL INCLUDE A PROVISION THAT, AS BETWEEN THE
AUTHORITY AND THE MORTGAGE LENDER, OR THE SUCCESSORS AND
ASSIGNS OF THE MORTGAGE LENDER, IN THE EVENT OF ANY LOSS
ON THE LOAN, THE [[LOSS SHALL BE SHARED IN THE FOLLOWING
MANNER. THE MORTGAGE LENDER, OR ITS SUCCESSOR OR ASSIGN,
SHALL BEAR A PERCENTAGE OF THE LOSS EQUAL TO 150% OF ITS
PERCENTAGE OWNERSHIP OF THE LOAN, BUT NOT EXCEEDING THE
ENTIRE LOSS. THE AUTHORITY SHALL BEAR THE DIFFERENCE]]
INTEREST OF THE AUTHORITY SHALL BE SUPERIOR TO AND HAVE
PRIORITY OVER THE INTEREST OF THE MORTGAGE LENDER.

[[466]] 465. BONDS OF AUTHORITY.

(A)   THE AUTHORITY MAY PROVIDE BY RESOLUTION FOR THE
ISSUANCE OF BONDS OF THE AUTHORITY FOR THE PURPOSE OF
FINANCING THE PROGRAMS AUTHORIZED IN THIS SUBTITLE.
THERE SHALL NOT BE OUTSTANDING AT ANY TIME [[IN]] AN
AGGREGATE PRINCIPAL AMOUNT OF BONDS EXCEEDING
[[$200,000,000]] $100,000.000. EXCLUDING BONDS WHICH HAVE
BEEN REFUNDED. THIS STATUTORY MAXIMUM SHALL NOT BE
CONSTRUED AS CONSTITUTING A CONTRACT BETWEEN THE
AUTHORITY OR THE STATE AND THE HOLDERS OF ANY OF THE
BONDS OF THE AUTHORITY THAT ADDITIONAL BONDS MAY NOT BE
ISSUED IF THE STATUTORY MAXIMUM IS SUBSEQUENTLY INCREASED
BY LAW.

(B)     THE AUTHORITY HAS ABSOLUTE DISCRETION TO