§ 122A‑5.6. Terms andconditions of loans to and by mortgage lenders.
(a) The Agency shallfrom time to time adopt, modify, amend or repeal rules and regulationsgoverning the making of loans to mortgage lenders and the application of theproceeds thereof. These rules and regulations shall be designed to effectuatethe general purposes of this Chapter and the following specific objectives: (i)the construction and rehabilitation of decent, safe and sanitary residentialhousing available to persons and families of lower income and persons andfamilies of moderate income at prices or rentals that they can afford; (ii) theencouragement of private enterprise and investment to sponsor, build andrehabilitate residential housing for persons and families of lower income andpersons and families of moderate income; and (iii) the restriction of thefinancial return and benefit to the mortgage lenders from such loans to anamount that is necessary to induce their participation and that is notexcessive as determined by prevailing market conditions.
(b) Notwithstanding anyother provision of this section, the interest rate or rates and other terms ofthe loans to mortgage lenders made from the proceeds of any issue of bonds ofthe Agency shall provide that the amounts received by the Agency in repaymentof the loans and interest thereon shall be at least sufficient to assure thepayment of the principal of and the interest on the bonds as they become due.
(c) The Agency shallenter into a written agreement with each mortgage lender that shall require asa condition of each loan to such mortgage lender that the mortgage lender shalloriginate new mortgage loans within a reasonable period of time as determinedby the Agency's rules and regulations and that such new mortgage loans shallhave such stated maturities as determined by the Agency's rules andregulations.
(d) The loans tomortgage lenders shall be general obligations of the respective mortgagelenders owing them. The Agency shall require that such loans shall be additionallysecured as to payment of both principal and interest by a pledge and lien uponcollateral security. The collateral security itself shall be in such amount asthe Agency determines will assure the payment of the principal of and theinterest on the bonds as they become due. Collateral security shall be deemedto be sufficient if the principal of and the interest on the collateralsecurity, when due, will be sufficient to pay the principal of and the intereston the bonds. The collateral security shall consist of any of the followingitems: (i) direct obligations of, or obligations guaranteed by, the State orthe United States of America; (ii) bonds, debentures, notes or other evidencesof indebtedness, satisfactory to the Agency, issued by any of the followingfederal agencies: Bank for Cooperatives, Federal Intermediate Credit Bank,Federal Home Loan Bank System, Export‑Import Bank of Washington, FederalLand Banks, Fannie Mae or the Government National Mortgage Association; (iii)direct obligations of or obligations guaranteed by the State; (iv) mortgagesinsured or guaranteed by the United States of America or an instrumentality ofit as to payment of principal and interest; (v) any other mortgages secured byreal estate on which there is located a residential structure, the collateralvalue of which shall be determined by the regulations issued from time to timeby the Agency; (vi) obligations of Federal Home Loan Banks; (vii) certificatesof deposit of banks or trust companies, including the trustee, organized underthe laws of the United States or any state, which have a combined capital andsurplus of at least fifteen million dollars ($15,000,000); (viii) BankersAcceptances; and (ix) commercial paper that has been classified for ratingpurposes by Dun & Bradstreet, Inc., as Prime‑1 or by Standard &Poor's Corp. as A‑1.
(e) The Agency mayrequire as a condition of any loan to a mortgage lender such representationsand warranties that it determines to be necessary to secure such loans and tocarry out the purposes of this section. (1983, c. 148, s. 3; 2001‑487, s. 14(i).)
§ 122A‑5.6. Terms andconditions of loans to and by mortgage lenders.
(a) The Agency shallfrom time to time adopt, modify, amend or repeal rules and regulationsgoverning the making of loans to mortgage lenders and the application of theproceeds thereof. These rules and regulations shall be designed to effectuatethe general purposes of this Chapter and the following specific objectives: (i)the construction and rehabilitation of decent, safe and sanitary residentialhousing available to persons and families of lower income and persons andfamilies of moderate income at prices or rentals that they can afford; (ii) theencouragement of private enterprise and investment to sponsor, build andrehabilitate residential housing for persons and families of lower income andpersons and families of moderate income; and (iii) the restriction of thefinancial return and benefit to the mortgage lenders from such loans to anamount that is necessary to induce their participation and that is notexcessive as determined by prevailing market conditions.
(b) Notwithstanding anyother provision of this section, the interest rate or rates and other terms ofthe loans to mortgage lenders made from the proceeds of any issue of bonds ofthe Agency shall provide that the amounts received by the Agency in repaymentof the loans and interest thereon shall be at least sufficient to assure thepayment of the principal of and the interest on the bonds as they become due.
(c) The Agency shallenter into a written agreement with each mortgage lender that shall require asa condition of each loan to such mortgage lender that the mortgage lender shalloriginate new mortgage loans within a reasonable period of time as determinedby the Agency's rules and regulations and that such new mortgage loans shallhave such stated maturities as determined by the Agency's rules andregulations.
(d) The loans tomortgage lenders shall be general obligations of the respective mortgagelenders owing them. The Agency shall require that such loans shall be additionallysecured as to payment of both principal and interest by a pledge and lien uponcollateral security. The collateral security itself shall be in such amount asthe Agency determines will assure the payment of the principal of and theinterest on the bonds as they become due. Collateral security shall be deemedto be sufficient if the principal of and the interest on the collateralsecurity, when due, will be sufficient to pay the principal of and the intereston the bonds. The collateral security shall consist of any of the followingitems: (i) direct obligations of, or obligations guaranteed by, the State orthe United States of America; (ii) bonds, debentures, notes or other evidencesof indebtedness, satisfactory to the Agency, issued by any of the followingfederal agencies: Bank for Cooperatives, Federal Intermediate Credit Bank,Federal Home Loan Bank System, Export‑Import Bank of Washington, FederalLand Banks, Fannie Mae or the Government National Mortgage Association; (iii)direct obligations of or obligations guaranteed by the State; (iv) mortgagesinsured or guaranteed by the United States of America or an instrumentality ofit as to payment of principal and interest; (v) any other mortgages secured byreal estate on which there is located a residential structure, the collateralvalue of which shall be determined by the regulations issued from time to timeby the Agency; (vi) obligations of Federal Home Loan Banks; (vii) certificatesof deposit of banks or trust companies, including the trustee, organized underthe laws of the United States or any state, which have a combined capital andsurplus of at least fifteen million dollars ($15,000,000); (viii) BankersAcceptances; and (ix) commercial paper that has been classified for ratingpurposes by Dun & Bradstreet, Inc., as Prime‑1 or by Standard &Poor's Corp. as A‑1.
(e) The Agency mayrequire as a condition of any loan to a mortgage lender such representationsand warranties that it determines to be necessary to secure such loans and tocarry out the purposes of this section. (1983, c. 148, s. 3; 2001‑487, s. 14(i).)
§ 122A‑5.6. Terms andconditions of loans to and by mortgage lenders.
(a) The Agency shallfrom time to time adopt, modify, amend or repeal rules and regulationsgoverning the making of loans to mortgage lenders and the application of theproceeds thereof. These rules and regulations shall be designed to effectuatethe general purposes of this Chapter and the following specific objectives: (i)the construction and rehabilitation of decent, safe and sanitary residentialhousing available to persons and families of lower income and persons andfamilies of moderate income at prices or rentals that they can afford; (ii) theencouragement of private enterprise and investment to sponsor, build andrehabilitate residential housing for persons and families of lower income andpersons and families of moderate income; and (iii) the restriction of thefinancial return and benefit to the mortgage lenders from such loans to anamount that is necessary to induce their participation and that is notexcessive as determined by prevailing market conditions.
(b) Notwithstanding anyother provision of this section, the interest rate or rates and other terms ofthe loans to mortgage lenders made from the proceeds of any issue of bonds ofthe Agency shall provide that the amounts received by the Agency in repaymentof the loans and interest thereon shall be at least sufficient to assure thepayment of the principal of and the interest on the bonds as they become due.
(c) The Agency shallenter into a written agreement with each mortgage lender that shall require asa condition of each loan to such mortgage lender that the mortgage lender shalloriginate new mortgage loans within a reasonable period of time as determinedby the Agency's rules and regulations and that such new mortgage loans shallhave such stated maturities as determined by the Agency's rules andregulations.
(d) The loans tomortgage lenders shall be general obligations of the respective mortgagelenders owing them. The Agency shall require that such loans shall be additionallysecured as to payment of both principal and interest by a pledge and lien uponcollateral security. The collateral security itself shall be in such amount asthe Agency determines will assure the payment of the principal of and theinterest on the bonds as they become due. Collateral security shall be deemedto be sufficient if the principal of and the interest on the collateralsecurity, when due, will be sufficient to pay the principal of and the intereston the bonds. The collateral security shall consist of any of the followingitems: (i) direct obligations of, or obligations guaranteed by, the State orthe United States of America; (ii) bonds, debentures, notes or other evidencesof indebtedness, satisfactory to the Agency, issued by any of the followingfederal agencies: Bank for Cooperatives, Federal Intermediate Credit Bank,Federal Home Loan Bank System, Export‑Import Bank of Washington, FederalLand Banks, Fannie Mae or the Government National Mortgage Association; (iii)direct obligations of or obligations guaranteed by the State; (iv) mortgagesinsured or guaranteed by the United States of America or an instrumentality ofit as to payment of principal and interest; (v) any other mortgages secured byreal estate on which there is located a residential structure, the collateralvalue of which shall be determined by the regulations issued from time to timeby the Agency; (vi) obligations of Federal Home Loan Banks; (vii) certificatesof deposit of banks or trust companies, including the trustee, organized underthe laws of the United States or any state, which have a combined capital andsurplus of at least fifteen million dollars ($15,000,000); (viii) BankersAcceptances; and (ix) commercial paper that has been classified for ratingpurposes by Dun & Bradstreet, Inc., as Prime‑1 or by Standard &Poor's Corp. as A‑1.
(e) The Agency mayrequire as a condition of any loan to a mortgage lender such representationsand warranties that it determines to be necessary to secure such loans and tocarry out the purposes of this section. (1983, c. 148, s. 3; 2001‑487, s. 14(i).)
