DRAFTER'S NOTE:

Error: Obsolete cross-reference in Article 83A, §§ 5-2l4(a) and
5-1210(a).

Occurred: As a result of Ch. 5, Acts of 1997.
Article 83B - Department of Housing and Community Development

2-206.

(1) Bonds or notes issued by the Administration may be secured by a trust
agreement between the Administration and a trustee, which may, be any trust
company, or bank having trust powers, within or without the State. Any trust
agreement, or any determination authorizing the issuance of bonds or notes, may
contain:

(4) Provisions as to custody, safeguarding, application, and investment of
funds of the Administration. The manner of and restrictions on investment of funds
shall be as the Administration provides, notwithstanding Article 95, § 22 of the Code
and §§ 6-202, 6-205, 6-206, [6-208,] 6-209, and 6-210 of the State Finance and
Procurement Article, which do not apply to banks or trust companies in the discharge
of duties under this section;

DRAFTER'S NOTE:

Error: Obsolete cross-reference in Article 83B, § 2-206(1)(4).

Occurred: As a result of Ch. 88, Acts of 1994.

2-208.

(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