Ch. 411                                          LAWS OF MARYLAND

[(1)]   (3) Assign a mortgage for value;

[(2)]   (4) Release a mortgage when paid; or

[(3)]   (5) Foreclose a mortgage.

13-315.

(b) (1) Subject to paragraph (2) of this subsection, as
long as it complies with any applicable federal treasury
regulations governing the borrowing of moneys by the State, a
loan TO AN OWNER-OCCUPANT BORROWER OR A LOAN TO A GROUP HOME
SPONSOR [shall] MAY permit:

(i) The interest rate to be increased:

1.  Variably; or

2.  To a stated rate; or
(ii) Acceleration of maturity.

(2)  Except as provided in paragraph (3) of this
subsection, the interest rate of a loan may not be increased and
the maturity may not be accelerated unless:

(i) 5 years have passed from the date of the
loan ;

(ii) The financial circumstances of the
owner-occupant borrower have changed and the borrower no longer
would qualify as an original borrower under the Program; or

(iii) The group home sponsor no longer provides
a group home.

(3)  If a borrower violates § 13-317 of this subtitle
or the loan is in default, the Department immediately may
accelerate the maturity.

(e)(1) THE DEPARTMENT SHALL ADOPT REGULATIONS WHICH

PROVIDE THAT THE TERMS OF EACH LOAN SHALL:

(I) REQUIRE INCREASES TO INTEREST RATES AS
PERMITTED IN SUBSECTION (B)(2)(II) OF THIS SECTION;

(II) REQUIRE LIMITS ON THE RETURN ON EQUITY
ALLOWED TO AN OWNER OCCUPANT BORROWER; OR

(III) PROVIDE FOR THE DEPARTMENT TO ENTER INTO

AN EQUITY PARTICIPATION AGREEMENT WITH AN OWNER OCCUPANT

BORROWER.

- 3136 -