HARRY HUGHES, Governor

773

266R.

(a)   If a mortgagor defaults in payment of any
installment of a mortgage insured in whole or in part by the
Authority, the Authority, after notification of the default,
will pay to or on behalf of the mortgagee all sums
attributable to the insured portion of the mortgage,
exclusive of any acceleration provision, as and when the
sums fall due, and no more, to the extent provided in the
mortgage insurance agreement. On a temporary basis not to
exceed 12 months, the Authority may pay all sums required by
the mortgage, regardless of the amount insured, if the
Authority determines that the payment is necessary to delay
foreclosure of an industrial project and that the delay
promotes the purposes of this subtitle. This payment will
not relieve the tenant of any obligation.

(b)  When a mortgagor does not meet mortgage payments
insured in whole or in part by the Authority by reason of
vacancy of its industrial project, the Authority, for the
purpose of maintaining income from industrial projects on
which mortgage loans have been insured by the Authority and
for the purpose of safeguarding the mortgage insurance fund,
may grant the mortgagor permission to lease or rent the
property to a tenant for a use other than that specified in
paragraph (3) of § 266-O, such lease or rental to be
temporary in nature and subject to such conditions as the
Authority may prescribe.

266S.

(a)  There is hereby created an industrial project
mortgage insurance fund, hereinafter in this subtitle
referred to as the "fund" which shall be used by the
Authority as a nonlapsing, revolving fund for carrying out
the provisions of this subtitle. To this fund shall be
charged any and all expenses of the Authority, including
mortgage insurance payments required by loan defaults and to
the fund shall be credited all receipts of the Authority,
including mortgage insurance premiums and proceeds from the
sale, disposal, lease, or rental of real or personal
property which the Authority may receive under the
provisions of this subtitle, and income earned by the
investments of the Authority made on its behalf by the State
Treasurer upon instruction of the Authority.

(b)  Moneys in the fund not needed currently to meet
the expenses and obligations of the Authority shall be
deposited with the State Treasurer to the credit of the fund
and invested in such manner as is provided for by statute.

(c)  The State Treasurer shall render annual reports to
the Authority advising the members of the Authority of the
status of the funds invested, the market value of the assets
in the fund as of the date such statement is rendered, and
the interest received from the investments during the period
covered by the report.