HARRY HUGHES, Governor

3063

BY repealing and reenacting, without amendments,

Article - Financial Institutions

Section 13-305

Annotated Code of Maryland

(1980 Volume and 1983 Supplement)

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 13-307

Annotated Code of Maryland

(1980 Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 41 - Governor - Executive and Administrative

Departments

257L.

(c) The Maryland Housing Rehabilitation Program is created.
Except as otherwise specifically provided, the provisions of this
subsection shall not apply to migratory housing facilities loans.

(1) The Department shall operate the program, and
make rehabilitation loans from the fund under the provisions of
this section.

(6) (I) Loans may not exceed an amount the Secretary
shall establish by regulation and they may not be made where
comparable private financing is available to the prospective
borrowers. Loans over $5,000 shall be secured by a recorded
mortgage or deed of trust on the property. Loans shall be made
from the fund to families of limited income owning and occupying
the building to be rehabilitated, or to sponsors. Loans may be
either insured or uninsured as the Department requires , and.

(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF
THIS PARAGRAPH, LOANS shall be at a rate of interest that is, as
long as the State complies with any applicable federal treasury
regulations governing the borrowing of moneys by the State[:

(i) At] AT least sufficient to cover:

[1.] (I) All administrative and other
expenses of the program; AND

[2.] (II) Reasonably expected losses

due to defaults on loans[ ; and