WILLIAM DONALD SCHAEFER, Governor                   Ch. 311

(3)  Restrictions as to the interest rate on a loan
made from the proceeds of purchase of mortgage loans or from the
proceeds of a loan to mortgage lenders or as to the return
realized by mortgage lenders from the loan;

(4)  Restrictions on maturities and other terms of
loans made from the proceeds of purchase of mortgage loans or
from the proceeds of loans to mortgage lenders;

(5)  Requirements as to the application by mortgage
lenders of the proceeds of the purchases or loans;

(6)  Schedules of fees and charges necessary to
provide for expenses and reserves of the Administration;

(7)  Criteria for allocation of funds among areas of
the State and among mortgage lenders;

(8)  Warranties, representations, certifications,
rights of inspection and audit, program sanctions, and other
methods of assuring compliance with the terms of purchase
commitments and loans; and

(9)  Any other matters related to exercise of the
powers of the Administration under this section.

(c)  A commitment that the Administration makes to purchase
new mortgage loans shall:

(1)  Specify the interest rate on loans eligible for
purchase, not to exceed the prevailing rate of interest on
comparable mortgage loans available in [this] THE State,
independent of public assistance or purchase;

(2)  For any residential mortgage loans to be used to
acquire homes to be occupied by families of limited incomes, be
limited to loans of a specified amount per dwelling unit, based
on the current median sale price of new homes in the area, as
determined by the Administration; and

(3)  Specify numbers or volumes of loans pursuant to
the commitment, to be made in specified geographical areas. New
mortgage loans which the Administration purchases shall be to
families of limited incomes or to sponsors of community
development projects.

(d)  A commitment that the Administration makes to purchase
existing mortgages shall require that the proceeds of the
purchase be reinvested in new mortgage loans to families of
limited incomes or to sponsors of community development projects,
within specified time limits, or invested in short-term
obligations pending the purchase or making of such mortgages.

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