HARRY HUGHES, Governor

715

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the fourth
sentence of Art. 41, § 266FF-2(a).

The reference to "Title 12, Subtitle 1 of the

Commercial Law Article" is added for clarity.

See e.g., the definition of "point" in CL §
12-101(h).

(C) INSURANCE.

THE DEPARTMENT MAY REQUIRE MORTGAGES TO BE INSURED AT
THE EXPENSE OF THE MORTGAGORS BY FEDERAL, STATE, OR PRIVATE
INSTRUMENTALITIES.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from Art. 41, §
266FF-2(d)(4).

The present references to availability of
insurance and furtherance of program objectives
are deleted as unnecessary.

13-315. LOAN PROVISIONS.

(A)   IN GENERAL.

AS TO EACH LOAN, THE DEPARTMENT MAY SET:

(1)   THE PRINCIPAL AMOUNT;

(2)   THE MATURITY, WHICH MAY NOT EXCEED 40 YEARS;
AND

(3)   THE PREFERRED INTEREST RATE.

REVISOR'S NOTE: This subsection is new language derived
without substantive change from the first part of
the first sentence of Art. 41, § 266FF-2(d)(1).

(B)   CHANGES PERMITTED.

(1)   SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION,
A LOAN SHALL PERMIT:

(I)   THE INTEREST RATE TO BE INCREASED:

1.   VARIABLY; OR

2.   TO A STATED RATE; OR

(II)   ACCELERATION OF MATURITY.

(2)   EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS
SUBSECTION, THE INTEREST RATE OF A LOAN MAY NOT BE INCREASED
AND THE MATURITY MAY NOT BE ACCELERATED UNLESS: