2052                                    LAWS OF MARYLAND                                 Ch. 497

Assembly finds that the flow of private investment capital
into such housing can be stimulated by a system wherein
qualified lending institutions may be insured against losses
incurred as a result of nonpayment of principal, interest,
or other sums agreed to be paid under the terms of any note
or bond or other evidence of indebtedness. The General
Assembly further finds that such mortgage insurance can
assist State and local activity to finance housing and
rehabilitation. THE GENERAL ASSEMBLY FINDS AND DECLARES THAT
IT IS IN THE PUBLIC INTEREST OF THE CITIZENS OF THIS STATE
TO REDUCE THE CONSUMPTION OF ENERGY AND TO INCREASE THE
UTILIZATION OF SOLAR ENERGY BY PROMOTING ENERGY CONSERVATION
PROJECTS, INDUSTRIAL ENERGY CONSERVATION PROJECTS AND SOLAR
ENERGY PROJECTS. THE GENERAL ASSEMBLY FINDS, AS A
CONSEQUENCE THEREOF, THIS GOAL CAN BE ASSISTED BY THE
PROVISION OF INSURANCE FOR LOANS MADE BY QUALIFIED LENDING
INSTITUTIONS FOR, OR BONDS OR NOTES ISSUED TO FINANCE, THE
ENERGY CONSERVATION, INDUSTRIAL ENERGY CONSERVATION AND
SOLAR ENERGY PROJECTS. FOR THE PURPOSES OF THIS SECTION,
THE TERMS "ENERGY CONSERVATION PROJECT", "INDUSTRIAL ENERGY
CONSERVATION PROJECT" AND "SOLAR ENERGY PROJECT" HAVE THE
MEANINGS STATED UNDER § 13-102 OF THE NATURAL RESOURCES
ARTICLE 266DD-3 OF ARTICLE 41. In furtherance "of such State
interest, there is established a Maryland Housing Fund.

(b)  The Department of Economic and Community
Development shall manage and supervise the Maryland Housing
Fund. The fund shall be deposited with the State Treasurer
to be held in such banks as he deems proper and shall be
accounted for by the State Comptroller in a special account
known as the "Maryland Housing Fund". The fund shall be
invested and reinvested in the same manner as other State
funds. The funds shall be used to insure mortgages accepted
by the Department under the provisions of this subheading,
OR TO INSURE BONDS OR NOTES ISSUED TO FINANCE ANY PROJECT
THAT IS ELIGIBLE FOR INSURANCE UNDER THE PROVISIONS OF THIS
SECTION.

(c)  The Department[, upon authorization by the
mortgagee,] may insure upon such terms as it may prescribe
any mortgage offered OR ANY BONDS OR NOTES ISSUED which [is]
ARE eligible for insurance under the provisions of this
section. For the purposes of this section, the term
"mortgage" includes loans to finance or refinance the
purchase of stock or membership or to rehabilitate units in
a cooperative ownership housing corporation. Fees shall be
established for said insurance in an amount calculated to
cover administrative costs for this program as well as
payments made where defaults on mortgages, BONDS OR NOTES
cause insured losses to the lenders, BONDHOLDERS OR
NOTEHOLDERS. FOR ANY PROPERTY ACQUIRED BY THE DEPARTMENT
THROUGH FORECLOSURE OR PURSUANT TO ANY OTHER PAYMENT IN
SETTLEMENT FOR A CLAIM FOR LOSS, THE DEPARTMENT MAY MAKE A
MORTGAGE LOAN TO ASSIST IN THE DISPOSITION OF THE PROPERTY.

(d)  The Department shall promulgate such standards for
the eligibility of insurance as are reasonable to provide