[§201H-45]  Sale; mortgage, agreement ofsale, and other instruments.  (a)  The corporation shall sell completeddwelling units or dwelling units that are substantially completed andhabitable, developed and constructed hereunder, to qualified residents in feesimple, or shall cause them to be leased or rented to qualified residents at aprice or rental based on costs as determined by the corporation.  The grossshare to the other partners or contract payments and any amounts subsidized bythe State, including but not limited to the land, need not be counted as costso as to increase the price.  These costs may be borne by the State, pursuantto rules adopted by the corporation subject to reimbursement upon sale asprovided in section 201H‑47.

(b)  If a qualified purchaser is unable toobtain sufficient funds at reasonable rates from private lenders, thecorporation, by way of mortgage, agreement of sale, or other instrument tosecure the indebtedness, may loan to the purchaser up to one hundred per cent ofthe purchase price.  The purchaser in that event shall execute with thecorporation an agreement of sale, mortgage, or other instrument under the termsof which the unpaid principal and the interest thereon shall be paid in monthlyinstallments over a period of not more than forty years.

(c)  Every mortgage, agreement of sale, otherinstrument to secure the indebtedness, or instrument of indebtedness executedby the corporation may contain other provisions as are usually found in suchinstruments and shall provide that the purchaser may repay the whole or anypart of the unpaid balance of the purchase price plus accrued interest at anytime without prepayment penalty.

(d)  If the purchaser defaults on the paymentof any loan, the corporation shall take all necessary action to collect thedelinquent principal and interest on the loan and may take all actions allowedto holders of obligations, including the power to repossess, lease, rent,repair, renovate, modernize, and sell the property foreclosed, subject to therestrictions described in this section.

(e)  The mortgages, agreements of sale, andother instruments of indebtedness, at the direction of the corporation, may beassigned to and serviced by commercial banks and other lending institutionsdoing business in the State at a fee of not more than one-half of one per centof the amount loaned to the purchaser.

(f)  Subsections (a) to (e) need not apply tomarket-priced dwelling units in an economically integrated housing project,except as otherwise determined by the developer of the units; provided thatpreference shall be given to qualified residents in the initial sale ofmarket-priced units. [L 2006, c 180, pt of §3]