HARRY HUGHES, Governor                                   687

any installment of a mortgage".

In both subsections (a) (1) and (b) (1) of this
section, present references to an insured
mortgage as insured "in whole or in part" are
deleted as unnecessary.

In subsection (b) (1) of this section, the more
objective phrase "and there is a vacancy" is
substituted for the subjective and, therefore,
less workable phrase "by reason of a vacancy".
Also, the present clause "for the purpose of
maintaining income ... and safeguarding the
mortgage insurance fund" is deleted as
unnecessary since it is but a statement of
purpose and is nonsubstantive.

The term "mortgage payments" is defined in §
13-101 (j) of this subtitle.

As to subsection (a)(1)(i) of this section, the
General Assembly might consider whether this
provision, by apparently denying the Authority of
the power to make lump sum payments when
necessary, is not an undue restriction on the
flexibility required to protect its interests.

The only other changes are in style.

13-153. MORTGAGES ARE NEGOTIABLE AND LEGAL INVESTMENTS.

(A)       IN GENERAL.

NOTWITHSTANDING ANY OTHER LAW, MORTGAGE LOANS APPROVED
BY THE AUTHORITY UNDER THIS SUBTITLE AND PARTICIPATIONS IN

THEM:

(1)       MAY BE NEGOTIABLE; AND

(2)       TO THE EXTENT THAT THE MORTGAGE PAYMENTS ARE
INSURED BY THE AUTHORITY, ARE LAWFUL INVESTMENTS FOR ALL
BANKS, TRUST COMPANIES, SAVINGS BANKS, CREDIT UNIONS,
SAVINGS AND LOAN        ASSOCIATIONS,        INVESTMENT COMPANIES,
INSURANCE COMPANIES, PERSONAL REPRESENTATIVES, GUARDIANS,
CONSERVATORS, TRUSTEES, AND OTHER FIDUCIARIES, AND PENSION,
RETIREMENT, AND PROFIT-SHARING FUNDS.

(B)       INSURANCE AGREEMENT.

AS TO A MORTGAGE INSURED BY THE AUTHORITY, THE

INSURANCE AGREEMENT BETWEEN THE AUTHORITY AND THE MORTGAGEE
INURES TO THE BENEFIT OF ANY BUYER, ASSIGNEE, OR OTHER
HOLDER TO WHOM THE MORTGAGE IS NEGOTIATED UNDER THIS
SECTION.

REVISOR'S NOTE: This section is new language derived
from Art. 41, § 266X.