HARRY HUGHES, Governor

2367

266DD-4.

The Administration shall have the following functions and
responsibilities:

(13) In accordance with the provisions of § 266DD-5,
make, purchase, and participate in making mortgage loans for any
community development project, secured by a mortgage lien,
including temporary loans or advances[,] AND permanent direct
mortgage loans to families OF LIMITED INCOMES for the purchase of
dwelling units in a community development project, and undertake
commitments therefor. In this subtitle, "mortgage loans" includes
loans to finance or refinance purchases of stock or membership or
to rehabilitate units in a cooperative ownership housing
corporation. Any commitment, mortgage or bonds or notes secured
shall contain terms and conditions necessary to secure repayment
of its loan, the interest thereon and other charges in connection
with the loan. Mortgage loans for a community development project
may bear interest at any rate or rates which the Administration
determines will make the community development project
economically feasible, except that the Administration may not
increase the rate of interest originally charged on a permanent
direct mortgage loan to a family for the purchase of a dwelling
unit in a community development project. [However, the interest
rate or rates and other terms of mortgage loans financed from the
proceeds of bonds or notes shall be at least sufficient to assure
the payment in full of the bonds or notes and the interest
thereon as they become due, except as otherwise provided in a
trust agreement, in the case of mortgage loans to a municipality,
county, local public agency or local development corporation or
nonprofit entity where other revenues are available to assure
payment of the bonds or notes.] Subject to the provisions of any
contract with noteholders or bondholders, consent to the
modification, with respect to rate of interest, time of payments
of any installment of principal or interest, security, or any
other term, of any mortgage, mortgage loan, mortgage . loan
commitment, contract or agreement of any kind to which the
Administration is a party. In connection with any property on
which it holds a mortgage loan, to foreclose on the property or
commence any action to protect or enforce any right conferred
upon it by any law, mortgage contract or other agreement, and to
bid for and purchase the property at any foreclosure or at any
other sale, or acquire or take possession of the property; and in
the event the Administration may complete, administer, pay the
principal of and interest on any obligations incurred in
connection with the property, dispose of, and otherwise deal with
the property, in a manner as may be necessary or desirable to
protect the interests of the Administration. Any lien held by the
Administration on property shall be a lien superior to all other
liens on the property except liens for taxes owed to the State of
Maryland or any subdivision thereof and earlier mortgage liens.
The Administration may sell any mortgage or other obligation held
by it, at public or private sale, with or without public bidding.
The. Administration may purchase securities backed by mortgage
loans for community development projects.