HARRY HUGHES, Governor

2221

(1)  Foreclosures; and

(2)  Employment of counsel.

(h) The Department may set a nonrefundable application fee
and need not return any amounts not spent to process the
application.

13-307.

(a)  The Department periodically shall set a preferred
interest rate that, as long as moneys borrowed by the State are
appropriated to the program, complies with any applicable federal
treasury regulations governing the borrowing of moneys by the
State.

(b)  The preferred interest rate shall be at least
sufficient to cover:

(1)  All administrative and other expenses of the
program;

(2)  Reasonably expected losses due to defaults on
loans; and

(3)  The interest cost of moneys used to fund the
program, which may be the actual interest cost of moneys borrowed
by the State and appropriated to the program, or the imputed
interest cost of general funds or loan repayments appropriated to
the program.

(c)  The Department may set a lower rate or rates of
interest FOR OWNER OCCUPANTS if:

(1)  The loans serve borrowers whose incomes do not
exceed 80 percent of the maximum income limits that the
Department may establish;

(2)  The lower rate or rates are not less than the
greater of 60 percent of the actual interest cost of moneys used
to fund the program or a rate of 4 percent; and

(3)  The Secretary determines that the borrowers
served by these loans do not have sufficient income to repay a
loan at a higher rate.

(D) THE DEPARTMENT MAY SET A LOWER RATE OR RATES OF
INTEREST FOR GROUP HOME SPONSORS IF:

(1) THE GROUP HOMES ARE TO BE OCCUPIED IN SUBSTANTIAL
PART BY INDIVIDUALS OR FAMILIES WHOSE INCOMES DO NOT EXCEED 80
PERCENT OF THE MAXIMUM INCOME LIMITS THAT THE DEPARTMENT MAY
ESTABLISH, IN WHICH CASE THE RATE MAY NOTE BE LESS THAN THE
GREATER OF: