HARRY HUGHES, Governor

2591

PRINCIPAL AND INTEREST SHALL BE PAYABLE SOLELY FROM THE
REVENUE DERIVED FROM INTEREST, MORTGAGE INSURANCE, CASUALTY
OR SPECIAL HAZARD INSURANCE OR OTHER INSURANCE PROCEEDS,
CONDEMNATION PROCEEDS, OR OTHER REVENUES DERIVED FROM THE
MORTGAGE LOANS, PROPERTY SECURING THE LOANS, OR OTHER
PAYMENTS OR REVENUES DERIVED FROM OR RELATING TO THE MAKING
OF THE LOANS. NEITHER THE BONDS NOR INTEREST COUPONS ISSUED
UNDER THIS SECTION SHALL EVER CONSTITUTE AN INDEBTEDNESS OR
A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF THE
ISSUING COUNTY OR MUNICIPALITY WITHIN THE MEANING OF ANY
CONSTITUTION, COUNTY CODE PROVISION OR STATUTORY LIMITATION,
AND NEITHER SHALL EVER CONSTITUTE OR GIVE RISE TO ANY
PECUNIARY LIABILITY OF THE ISSUING COUNTY OR MUNICIPALITY.
ON THE ADVICE OF COUNSEL, IT MAY BE PLAINLY STATED ON THE
FACE OF EACH BOND THAT IT HAS BEEN ISSUED UNDER THE
PROVISIONS OF THIS SECTION AND THAT IT DOES NOT CONSTITUTE
AN INDEBTEDNESS TO WHICH THE FAITH AND CREDIT OF THE COUNTY
OR MUNICIPALITY IS PLEDGED.

(5) ALL MONEYS RECEIVED FROM THE BONDS SHALL BE
APPLIED SOLELY FOR MAKING FUNDS AVAILABLE EITHER DIRECTLY OR
THROUGH MORTGAGE LENDING INSTITUTIONS ONLY, FOR RESIDENTIAL
MORTGAGE LOANS TO LOW AND MODERATE INCOME PERSONS AND
FAMILIES, ESTABLISHING RESERVE FUNDS, PAYING THE NECESSARY
EXPENSES OF THE FINANCING, OR TO ADVANCE THE PAYMENT OF
INTEREST ON THE BONDS DURING THE FIRST 3 YEARS FOLLOWING THE
DATE OF THE BONDS.

(H) THE COUNTY OR MUNICIPALITY MAY ISSUE NEW BONDS TO
PROVIDE FUNDS FOR THE PAYMENT OF ANY OUTSTANDING BONDS, IN
ACCORDANCE WITH THE PROCEDURE PRESCRIBED BY THIS SECTION AND
THE PROVISIONS OF SECTION 24 OF ARTICLE 31 OF THE CODE. THE
NEW BONDS SHALL BE SECURED TO THE SAME EXTENT AND SHALL HAVE
THE SAME SOURCE OF PAYMENT AS THE BONDS REFUNDED.

(I) ANY PROGRAM EFFECTING THE FINANCING UNDER THIS
SECTION MAY PROVIDE FOR LOAN AGREEMENTS, SECURITY
AGREEMENTS, LOAN SERVICING AGREEMENTS, FORMS OF MORTGAGES,
NOTES AND DEEDS OF TRUST, AND OTHER SECURITY, DOCUMENTS,
AGREEMENTS, PROVISIONS, AND OTHER MATTER AS THE COUNTY OR
MUNICIPALITY MAY DEEM NECESSARY OR APPROPRIATE TO EFFECT THE
FINANCING OF THE PROGRAM. A TRANSACTION UNDER THIS SECTION
SHALL IN NO EVENT CONSTITUTE A CAPITAL PROJECT WITHIN THE
MEANING OF ANY CHARTER OR STATUTORY PROVISION. THE
TRANSACTION SHALL BE AUTHORIZED BY ORDINANCE OR RESOLUTION
WITHOUT ANY REFERENDUM OR OTHER PROCEDURE NOT APPLICABLE TO
ALL ORDINANCES OR RESOLUTIONS ENACTED IN A PARTICULAR COUNTY
OR MUNICIPALITY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 27, 1980.