HARRY HUGHES, Governor

140 3

REASONABLE COMPARABLE SECURITY. THE ADMINISTRATION SHALL
REQUIRE EITHER THAT THE COLLATERAL BE HELD AT A BANK OR
TRUST COMPANY AS INDEPENDENT CUSTODIAN OR THAT THE MORTGAGE
LENDER ENTER INTO A SECURITY AGREEMENT THAT CONTAINS
PROVISIONS THAT THE ADMINISTRATION CONSIDERS NECESSARY TO
ADEQUATELY IDENTIFY, MAINTAIN, AND SERVICE THE COLLATERAL.
THE SECURITY AGREEMENT SHALL PROVIDE THAT THE MORTGAGE
LENDER HOLDS THE COLLATERAL AS AN AGENT FOR THE
ADMINISTRATION AND IS ACCOUNTABLE AS THE TRUSTEE OF AN
EXPRESS TRUST FOR ITS APPLICATION AND DISPOSITION, AND SHALL
APPLY THE INCOME FROM THE COLLATERAL SOLELY TO USES AND
PURPOSES IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT.
A COPY OF EACH SECURITY AGREEMENT SHALL BE FILED WITH THE
SECRETARY OF STATE, AND FURTHER FILING OR OTHER ACTION UNDER
THE COMMERCIAL LAW ARTICLE OR ANY OTHER LAW OF THE STATE IS
NOT REQUIRED TO PERFECT THE SECURITY INTEREST OF THE
ADMINISTRATION IN THE COLLATERAL OR ITS PROCEEDS OS IN ANY
ADDITION TO OR SUBSTITUTIONS FOR IT, AND THE LIEN AND TRUST
FOR THE BENEFIT OF THE ADMINISTRATION SO CREATED IS BINDING
FROM AND AFTER THE TIME MADE OF SUCH FILING AGAINST ALL
PERSONS HAVING CLAIMS OF ANY KIND AGAINST THE MORTGAGE
LENDER. THE ADMINISTRATION ALSO MAY ESTABLISH ADDITIONAL
REQUIREMENTS THAT IT CONSIDERS NECESSARY WITH RESPECT TO THE
PLEDGING, ASSIGNING, SETTING ASIDE, OR HOLDING OF THE
COLLATERAL AND THE MAKING OF SUBSTITUTIONS FOR OR ADDITIONS
TO IT AND THE DISPOSITION OF INTEREST AND INCOME FROM IT.
NOTWITHSTANDING ANY OTHER LAW, A LOAN TO A MORTGAGE LENDER
AND THE COLLATERAL FOR IT ABE NOT SUBJECT TO THE PROVISIONS
OF ARTICLE 95, §§ 21, 21A, OR 22 OF THE CODE.

(G) THE MORTGAGE LENDER SHALL CERTIFY WITH RESPECT TO
EVERY RESIDENTIAL MORTGAGE LOAN WHICH IT MAKES PURSUANT TO A
PURCHASE COMMITMENT BY THE ADMINISTRATION, WITH THE PROCEEDS
OF PURCHASE OF MORTGAGE LOANS BY THE ADMINISTRATION, OR WITH
THE PROCEEDS OF A LOAN BY THE ADMINISTRATION, THAT IN ITS
OPINION, BASED ON INFORMATION SUBMITTED BY THE MORTGAGOR AND
ON ITS KNOWLEDGE OF THE PREVAILING TERMS AND STANDARDS OF
MORTGAGE LENDING IN THE AREA, THE MORTGAGOR COULD NOT OBTAIN

A MORTGAGE LOAN FOR THE PROPERTY IN THE UNASSISTED PRIVATE

LENDING MARKET.

(H) ANY NEW OR EXISTING RESIDENTIAL MORTGAGE WHICH IS

PURCHASED BY THE ADMINISTRATION OR IN WHICH THE

ADMINISTRATION PURCHASES AN INTEREST AND ANY MORTGAGE MADE
WITH THE PROCEEDS OF A LOAN MADE BY THE ADMINISTRATION TO A

MORTGAGE LENDER MAY NOT BE ASSIGNED TO OR ASSUMED BY__ANY

PERSON NOT QUALIFIED UNDER THE APPROPRIATE ADMINISTRATION
PROGRAM.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.