§206E-117  Purchase of existing loans
program.  (a)  The authority may contract with a mortgage lender to
purchase, in whole or in part, existing loans, whether or not eligible loans. 
The contract may contain provisions as determined by the authority to be
necessary or appropriate to provide security for its revenue 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 authority;



(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 authority.



(b)  The authority 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 in an aggregate principal
amount substantially equal to the amount of the proceeds from the purchase by
the authority of loans therefrom. [L 1982, c 228, pt of §8]