HARRY HUGHES, Governor                               2875

conveyances in lieu of foreclosure; convey title to
purchasers; obtain and enforce deficiency judgments; permit
assumption of mortgages; and contract with private mortgage
servicers to perform functions ordinarily performed by such
servicers, including foreclosures and the employment of
counsel by the servicers, on behalf of the Department.
Approval or execution by the Board of Public Works is not
required to assign mortgages for value, to release mortgages
when paid, [or] to accomplish foreclosures[.], TO ACCEPT
DEEDS IN LIEU OF FORECLOSURES, OR TO CONVEY PROPERTY AFTER
ACQUISITION.

(2) Require and obtain appraisals, credit
information, and other information related to making loans;

(3) Contract for services relating to any aspect
of the operation of the program in accordance with the
procedures required by law for State contracts;

(4) Charge and collect reasonable application
and processing fees, and other charges, fees, or
reimbursements incidental to loans;

(5) Adopt, and amend from time to time, in

accordance with statutory requirements, regulations

governing all aspects of the operation of the program.

[(f)] (G) Every person who knowingly makes or causes
to be made any false statement or report for the purpose of
influencing the action of the Department upon any
application for a grant or loan PURSUANT TO THIS SECTION or
any action of the Department affecting a grant or loan
already made, is guilty of a misdemeanor and upon conviction
shall be fined not more than $5,000 or imprisoned for not
more than two years, or both. Every borrower who knowingly
makes or causes to be made such a false statement or report
shall, at the option of the Department, and without regard
to the commencement or status of criminal prosecution, be
subject to immediate acceleration of the loan for which he
is liable. The criminal penalties and acceleration provided
by this section shall apply to any material misstatement of
fact, whether in the nature of an understatement or
overstatement of financial condition, or any other fact
material to the Department's actions.

[(g)] (H) (1) The program shall operate as a
continuing, nonlapsing, special fund, that consists of
moneys appropriated by the State to the program.

(2) The Department shall use the fund to make
loans and to pay expenses of the program including reserves
for anticipated future losses directly related to the
program, as provided in the annual budget of the State or
other act appropriating moneys.