WILLIAM DONALD SCHAEFER, Governor                    Ch. 311

(a)  A person may not knowingly make or cause any false
statement or report to be made in any document required to be
furnished to the Department by any agreement relating to a loan.

(b)  A person applying for a loan may not knowingly make or
cause any false statement or report to be made for the purpose of
influencing the action of the Department on a loan application or
for the purpose of influencing any action of the Department
affecting a loan already made.

(c)  Any person who violates any provision of subsection (a)
or (b) of this section is guilty of a misdemeanor and on
conviction is subject to a fine not exceeding $50,000 or
imprisonment not exceeding five years or both.

[Subtitle 7. Housing Assistance Programs]

Title 3. [Maryland] Housing [Fund] INSURANCE DIVISION

SUBTITLE 1. DIVISION ESTABLISHED

3-101.

(A)  THERE IS A DIVISION OF HOUSING INSURANCE, AS AN
ORGANIZATIONAL UNIT WITHIN THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT.

(B)  THE DIVISION INCLUDES THE MARYLAND HOUSING FUND.

3-102.

THE DIVISION SHALL ADMINISTER THOSE PROGRAMS ASSIGNED TO THE
DIVISION BY LAW, OR DESIGNATED BY THE SECRETARY.

SUBTITLE 2. MARYLAND HOUSING FUND

[11-701.]

[(a)] 3-201. The General Assembly declares that it is a
subject of concern that many residents of this State are living
in substandard housing and that there exists a shortage of
housing at reasonable costs for various income levels. The
General Assembly recognizes that adequate multiple unit and
single family housing can, and should, be provided by private
capital under our free enterprise system and in accordance with
sound investment practices. The General Assembly finds that the
flow of private investment capital into such housing can be
stimulated by a system wherein qualified lending institutions may
be insured against losses incurred as a result of nonpayment of
principal, interest, or other sums agreed to be paid under the
terms of any note or bond or other evidence of indebtedness. The
General Assembly further finds that such mortgage insurance can
assist State and local activity to finance housing and

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