MARVIN MANDEL, Governor

1143

266DD-4.

The Administration shall have the following
functions and responsibilities:

(13) In accordance with the provisions of §
266DD—5, make and participate in making mortgage loans
for any community development project, secured by a
mortgage lien, including temporary loans or advances, and
including permanent direct mortgage loans to families for
the purchase of dwelling units in a community development
project, and undertake commitments therefor. Any such
commitment, mortgage or bonds or notes secured thereby
shall contain terms and conditions necessary to secure
repayment of its loan, the interest thereon and other
charges in connection therewith. Mortgage loans for a
community development project may bear interest at any
[[fixed]] [or variable] rate or rates which the
Administration determines will make the community
development project economically feasible, EXCEPT THAT
THE ADMINISTRATION MAY NOT INCREASE THE RATE OF INTEREST
ORIGINALLY CHARGED ON A PERMANENT DIRECT MORTGAGE LOAN TO

A FAMILY FOR THE PURCHASE OF A DWELLING UNIT IN A

COMMUNITY DEVELOPMENT PROJECT. However, the interest rate
or rates and other terms of mortgage loans made from the
proceeds of bonds or notes shall be at least sufficient
to assure the payment in full of the bonds or notes and
the interest thereon as they become due, except as
otherwise provided in a trust agreement, in the case of
mortgage loans to a municipality, county, local public
agency or local development corporation or nonprofit
entity where other revenues are available to assure
payment of the bonds or notes. Subject to the provisions
of any contract with noteholders or bondholders, consent
to the modification, with respect to rate of interest,
time of payments of any installment of principal or
interest, security, or any other term, of any mortgage,
mortgage loan, mortgage loan commitment, contract or
agreement of any kind to which the Administration is a
party. In connection with any property on which it has
made a mortgage loan, to foreclose on any such property
or commence any action to protect or enforce any right
conferred upon it by any law, mortgage contract or other
agreement, and to bid for and purchase such property at
any foreclosure or at any other sale, or acquire or take
possession of any such property; and in such event the
Administration may complete, administer, pay the
principal of and interest on any obligations incurred in
connection with such property, dispose of, and otherwise
deal with such property, in such manner as may be
necessary or desirable to [[project]] PROTECT the
interests of the Administration therein. Any lien held
by the Administration on property shall be a lien
superior to all other liens on the property except liens
for taxes owed to the State of Maryland or any
subdivision thereof and earlier mortgage liens. The
administration may sell any mortgage or other obligation
held by it, at public or private sale, with or without