3292

LAWS OF MARYLAND

Ch. 717

(1)  Subject to then existing agreements with
bondholders or noteholders, provisions pledging or assigning all
or any part of the revenues of the Administration, mortgages or
loans made by the Administration or the security therefor, the
proceeds of any bonds or notes of the Administration, or any
combination of these and any other assets of the Administration,
to secure payment of bonds or notes;

(2)  Provisions protecting and enforcing rights and
remedies of bondholders or noteholders, including restrictions on
the rights of holders, and covenants setting forth duties of or
restrictions on the Administration;

(3)  Provisions appointing one or more trust companies
or banks with trust powers to act as depositaries of the proceeds
of any bonds or notes, or of any revenues or funds of the
Administration. Any depositary bank or trust company incorporated
in Maryland may furnish indemnifying bonds or pledge securities,
as required by the Administration;

(4)  Provisions as to custody, safeguarding,
application, and investment of funds of the Administration. The
manner of and restrictions on investment of funds shall be as the
Administration provides, notwithstanding Article 95, § 22 OF THE
CODE AND §§ [21, 21A, and 22 of the Code] 6-202, 6-205, 6-206,
6-208, 6-209, AND 6-210 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE, which do not apply to banks or trust companies in the
discharge of duties under this section;

(5)  Provisions establishing and controlling all
aspects of reserve funds, including debt service reserve funds;

(6)  Provisions for funding or refunding bonds or
notes, including redemption premiums and interest;

(7)  Any other provisions deemed reasonable and proper
for the security of bondholders or noteholders.

266DD-8.

(f) A loan that the Administration makes to a mortgage
lender shall be a general obligation of the mortgage lender as to
repayment of both principal and interest and repayment of both
principal and interest shall be secured additionally by a pledge
of and lien on collateral security, in an amount that the
Administration by regulation determines to be necessary to secure
loans... The collateral security shall consist of: (1)
Obligations of, or guaranteed by the United States, the State of
Maryland, or a political subdivision of the State; (2)
Obligations, satisfactory to the Administration, issued by
federal agencies or instrumentalities; (3) Certificates of
deposit or time deposits or similar banking arrangements secured
by obligations of, or guaranteed by, the United States or the
State of Maryland; or (4) Mortgages insured or guaranteed in
whole or in part by the Maryland Housing Fund, a federal agency,