Ch. 504                                          LAWS OF MARYLAND

provisions or any other application of this Act which can be
given effect without the invalid provision or application, and
for this purpose the provisions of this Act are declared
severable.

SECTION 7 3. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1988.

Approved May 17, 1988.

CHAPTER 504

(House Bill 1312)

AN ACT concerning

Real Property - Closing Costs Assistance Settlement
Expense Loan Program

FOR the purpose of establishing a program of financial assistance
for closing costs settlement expenses of the purchase of
housing by certain eligible homebuyers with limited incomes;
requiring the Department of Housing and Community
Development to adopt and administer regulations to carry out
the Program; providing for certain duties and powers of the
Department relating to the Program; requiring that loans
made under the Program be secured by a mortgage lien
providing for security and terms for loans made under the
Program; requiring the Department to consider the
homebuyer's financial resources in approving a loan;
authorizing the acceleration of a loan under certain
conditions; providing for actions in the event of a default;
authorizing the Secretary of Housing and Community
Development to establish standards of eligibility;
authorizing the Department to make certain program loans;
establishing a Closing Costs Assistance Settlement Expense
Loan Fund as a continuing, nonlapsing, special fund to be
used to fund loans and expenses of the Program; providing
for appropriations to the Fund to be made only up to and
including a certain fiscal year; requiring the State
Treasurer to hold, and the State Comptroller to account for
the Fund; providing a certain penalty for making certain
false statements or reports to the Department in relation to
the Program; defining certain terms; and generally relating
to a Closing Costs Assistance Settlement Expense Loan
Program for eligible homebuyers with limited incomes.

BY adding to

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