§206E-117  Purchase of existing loansprogram.  (a)  The authority may contract with a mortgage lender topurchase, in whole or in part, existing loans, whether or not eligible loans. The contract may contain provisions as determined by the authority to benecessary or appropriate to provide security for its revenue bonds, includingbut not limited to provisions requiring the:

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

(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 authority.

(b)  The authority shall require as a conditionof each purchase of existing loans from a mortgage lender that the mortgagelender proceed to make and disburse eligible loans in an aggregate principalamount substantially equal to the amount of the proceeds from the purchase bythe authority of loans therefrom. [L 1982, c 228, pt of §8]