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



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



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



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



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