HARRY HUGHES, Governor

1999

direct mortgage loans to families for the purchase of
dwelling units in a community development project, and
undertake commitments therefor. In this subtitle, "mortgage
loans" includes loans to finance or refinance purchases of
stock or membership or to rehabilitate units in a
cooperative ownership housing corporation. 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] WITH THE LOAN. 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] THE 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] THE property at any foreclosure or at
any other sale, or acquire or take possession of [any such]
THE property; and in [such] THE event the Administration may
complete, administer, pay the principal of and interest on
any obligations incurred in connection with [such] THE
property, dispose of, and otherwise deal with [such] THE
property, in [such] A 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. THE ADMINISTRATION MAY PURCHASE SECURITIES
BACKED BY MORTGAGE LOANS FOR COMMUNITY DEVELOPMENT PROJECTS.

(14) THE ADMINISTRATION MAY ISSUE SECURITIES BACKED BY
MORTGAGE LOANS FOR COMMUNITY DEVELOPMENT PROJECTS AND
GUARANTEED BY THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.
ISSUANCE OF THESE SECURITIES AND THEIR TERMS AND CONDITIONS