1702

LAWS OF MARYLAND

Ch. 609

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 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
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 public bidding.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 610
(House Bill 1151)