Ch. 311

LAWS OF MARYLAND

(13) (i) In accordance with the provisions of [§
11-305] § 2-205 OF THIS SUBTITLE:

1.  Make, purchase, and participate in
making:

A.  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

B.  Reverse equity mortgage loans for
elderly families of limited income that are secured by a mortgage
lien for housing related expenses, including personal expenses
which enable the owner to continue to occupy the owner's home;
and

2.  Undertake commitments therefor.

(ii) In this [subtitle] SECTION:

1. "Mortgage loans" includes loans to

finance or refinance purchases of stock or membership or to

rehabilitate units in a cooperative ownership housing
corporation; and

2. "Reverse equity mortgage loans"
includes loans that use the equity in a home as collateral.

(iii) 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 and reverse equity mortgage loans
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. Subject to the
provisions of any contract with noteholders or bondholders,
consent to the modification, with respect to fate of interest,
time of payments of any installment of principal or interest,
security, or any other term, of any mortgage, mortgage loan,
reverse equity mortgage [loan] LOAN, mortgage loan commitment,
reverse equity 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[,] OR reverse
equity mortgage loan [to] THE ADMINISTRATION MAY 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

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