§206E-116  Loan to lenders program;collateral security. (a)  Loans made to mortgage lenders shall beadditionally secured by a pledge of a lien upon collateral security in anamount as the authority deems necessary to assure the payment of principal of andinterest on the loans as they become due.

(b)  The authority shall determine the natureand type of collateral security required.

(c)  A statement designating the collateralsecurity pledged, the mortgage lender pledging the collateral, and the authority'sinterest in the pledged collateral may be filed with the bureau ofconveyances.  Where a statement has been filed, no possession, further filing,or other action under any state law shall be required to perfect any securityinterest which may be deemed to have been created in favor of the authority. The mortgage lender shall be deemed the trustee of an express trust for thebenefit of the authority in all matters relating to the pledged collateral.

(d)  Subject to any agreement with the holdersof its revenue bonds, the authority may collect, enforce the collection of, andforeclose on any collateral securing its loans to mortgage lenders.  Theauthority may acquire, take possession, sell at public or private sale with orwithout bidding, or otherwise deal with the collateral to protect itsinterests. [L 1982, c 228, pt of §8]