(2) In the case of preferred interest rate loans under § 2-602(1) of this
subtitle, full acceleration of principal after 5 years if the borrower no longer qualifies
as a household of limited income and is able to qualify for conventional mortgage
financing;

(3) In the case of reverse equity loans made under § 2-602(5) of this

subtitle:

(i) Full or partial deferrals on payment of interest and principal
until sale, conveyance pursuant to a will or trust instrument, or other transfer of the
mortgaged property or a beneficial interest therein; and

(ii) Forgiveness of accrued interest in excess of the available equity
in the mortgaged property at the time of any such conveyance; and

(4) In the case of emergency assistance loans made under § 2-602(4) of
this subtitle, full or partial deferrals on payment of interest and principal until a
stated date at which it is reasonably anticipated that the borrower should be able to
make full or partial payments.

(f) (1) For preferred interest loans made under § 2-602(1) of this subtitle,
the amount of the loan and any prior recorded liens outstanding may not exceed the
value of the secured property plus settlement expenses as may be determined by the
Program at the time the loan is closed.

(2) For reverse equity loans made under § 2-602(5) of this subtitle, the
principal amount of the loan and any prior liens outstanding may not exceed the
appreciated value of the secured property as determined by the Program from time to
time.

(3) For short-term loans made under § 2-602(2) of this subtitle, the
amount of the loan may not exceed the amount of the total commitments for
permanent financing for buyers, including any commitments of federal, State, or local
funds to be used to subsidize the cost of the residential units.

DRAFTER'S NOTE:

Error: Erroneous cross-references in Article 83B, § 2-611(b)(3) and (f)(2).

Occurred: As a result of Ch. 412, Acts of 1994. Correction by the
publisher of the Annotated Code in the 1998 Replacement Volume is
validated by this Act.

2-1102.

(d) "Household of lower income" means:

(1) A household whose gross annual income, upon initial occupancy, does
not exceed 50 percent of the statewide median income for a household of like size or
such lesser income level as may be established for any particular project by the
Secretary of Housing and Community Development; and