[§201H-104]  Purchase of existing loansprogram.  (a)  The corporation may contract with a mortgage lenderto purchase, in whole or in part, existing loans, whether or not eligibleloans, eligible improvement loans, or eligible project loans.  The contract maycontain provisions as determined by the corporation to be necessary orappropriate to provide security for its bonds, including but not limited toprovisions requiring the:

(1)  Repurchase of the loans, in whole or in part, bymortgage lenders at the option of the corporation;

(2)  Payments of premiums, fees, charges, or otheramounts by mortgage lenders to provide a reserve or escrow fund for thepurposes of protecting against loan defaults; and

(3)  Guarantee by, or for recourse against, mortgagelenders, with respect to defaults on these loans of the corporation.

(b)  The corporation shall require, as acondition of each purchase of existing loans from a mortgage lender, that themortgage lender proceed to make and disburse eligible loans, eligibleimprovement loans, or eligible project loans in an aggregate principal amountsubstantially equal to the amount of the proceeds from the purchase by thecorporation of loans therefrom. [L 2006, c 180, pt of §4]