Ch. 311

LAWS OF MARYLAND

(e)  A loan that the Administration makes to a mortgage
lender shall require the mortgage lender to make either mortgage
loans to families of limited incomes or mortgage loans to
sponsors of community development projects in an aggregate
principal amount at least equal to the amount of the loan of the
Administration. The mortgage lender shall commit the amount of
qualifying mortgage loans or mortgage loans to sponsors of
community development projects within a period after the receipt
of the loan that the Administration specifies.

(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,
or a private insurer approved by the Administration, or other
mortgages that the Administration finds to be of reasonable
comparable security. The Administration shall require either
that the collateral be held at a bank or trust company as
independent custodian or that the mortgage lender enter into a
security agreement that contains provisions that the
Administration considers necessary to adequately identify,
maintain, and service the collateral. The security agreement
shall provide that the mortgage lender holds the collateral as an
agent for the Administration and is accountable as the trustee of
an express trust for its application and disposition, and shall
apply the income from the collateral solely to uses and purposes
in accordance with the provisions of the agreement; A copy of
each security agreement shall be filed with the Secretary of
State, and further filing or other action under the Commercial
Law Article or any other law of the State is not required to
perfect the security interest of the Administration in the
collateral or its proceeds or in any addition to or substitutions
for it, and the lien and trust for the benefit of the
Administration so created is binding from and after the time of
such filing against all persons having claims of any kind against
the mortgage lender. The Administration also may establish
additional requirements that it considers necessary with respect
to the pledging, assigning, setting aside, or holding of the
collateral and the making of substitutions for or additions to it
and the disposition of interest and income from it.
Notwithstanding any other law, a loan to a mortgage lender and
the collateral for it are not subject to the provisions of

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