§ 42-55-10 Terms and conditions of thepurchase and sale to mortgage lender of loans – Loans to mortgage lenders.– (a) No obligation purchased from a mortgage lender shall be eligible forpurchase or commitment to purchase by the corporation unless at or before thetime of transfer to the corporation the mortgage lender certifies that in itsjudgment the loan would in all respects be a prudent investment for its ownaccount.
(b) The corporation shall purchase mortgage loans at apurchase price equal to the outstanding principal balance; provided, however,that a discount from the principal balance or the payment of a premium may beemployed to effect a fair rate of return, as determined by the rate of returnon comparable investments under market conditions existing at the time of thepurchase. In addition to this payment of outstanding principal balance, thecorporation shall pay the accrued interest due on the date the loan orobligation is delivered against the payment.
(c) Loans purchased or sold may include, but shall not belimited to, loans which are insured, guaranteed, or assisted by the UnitedStates or a governmental agency or instrumentality thereof or for which thereis a commitment by the United States or a governmental agency orinstrumentality thereof to insure, guaranty, or assist that loan.
(d) The corporation shall from time to time adopt, modify, orrepeal rules and regulations governing the making of loans to mortgage lendersand the purchase and sale of mortgage loans and the application of the proceedsthereof, including rules and regulations as to any or all of the following:
(i) Procedures for the submission of requests or theinvitation of proposals for the purchase and sale of mortgage loans or forloans to mortgage lenders;
(ii) Limitations or restrictions as to the number of familyunits, location, or other qualifications or characteristics of residences to befinanced by those mortgage loans;
(iii) Restrictions as to the interest rates on those mortgageloans or the return realized by mortgage lenders;
(iv) Requirements as to commitments by mortgage lenders withrespect to the application of the proceeds of that purchase or loan;
(v) Schedules of any fees and charges necessary to providefor the expenses and reserves of the corporation; and
(vi) Any other matters related to the duties and the exerciseof the powers of the corporation under this section.
(2) These rules and regulations shall be designed toeffectuate the general purposes of this chapter and the following specificobjectives:
(i) The expansion of the supply of funds in the stateavailable for mortgage loans for residential housing for occupancy by personsand families of low and moderate income;
(ii) Provision of the additional housing needed to remedy theshortage of adequate housing in the state and eliminate the existence of alarge number of substandard dwellings; and
(iii) The restriction of the financial return and benefit onthose mortgage loans to that level necessary to protect against the realizationby mortgage lenders of a financial return or benefit in excess of prevailingmarket conditions.
(e) The corporation may from time to time make loans tomortgage lenders so as to furnish, as rapidly as possible, funds to mortgagelenders for eligible mortgages.
(f) Loans to mortgage lenders shall be general obligations ofthe respective mortgage lenders owing them and shall bear the date or dates,shall mature at the time or times, shall be evidenced by a note, bonds, orother certificate of indebtedness, shall be subject to prepayment, and shallcontain other provisions consistent with this section, all as the corporationshall by resolution determine.
(g) Any other provision of this chapter to the contrarynotwithstanding, the interest rate or rates and other terms of the loans tomortgage lenders made from the proceeds of any issue of bonds of thecorporation shall be at least sufficient so as to assure the payment of thebonds, and the interest on the bonds as they become due, from the amountsreceived by the corporation in repayment of loans and interest on the loans.
(h) The corporation shall require as a condition of each loanto a mortgage lender that that mortgage lender shall on or prior to the onehundred-eightieth (180th) day or an earlier day that shall be prescribed by therules and regulations of the corporation) following the receipt of the loanproceeds have entered into written commitments to make, and shall proceed aspromptly as practicable to make and disburse from those loan proceeds, eligiblemortgages in an aggregate principal amount equal to the amount of the loan.
(i) The corporation shall require that the loans to mortgagelenders shall be additionally secured as to the payment of both principal andinterest by a pledge of and lien upon collateral security in those amounts thatthe corporation shall by resolution determine to be necessary to assure thepayment of the loans and the interest on the loans as they become due. Thecollateral security shall consist of:
(i) Direct obligations of, or obligations guaranteed by, theUnited States;
(ii) Bonds, debentures, notes, or other evidences ofindebtedness, 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, federal landbanks, the federal national mortgage association, or the government nationalmortgage association;
(iii) Direct obligations of, or obligations guaranteed by,the state; or
(iv) Mortgages insured or guaranteed by the United States oran instrumentality of the United States as to payments of principal andinterest;
(v) Mortgages secured by real estate on which there islocated single family residential housing and which is insured by a mortgageguaranty insurance company licensed to do business by the state and approved bythe corporation;
(vi) Uninsured mortgages secured by real estate on whichthere is located single family residential housing; or
(vii) Those other obligations and securities that thecorporation shall by resolution determine to be necessary to assure the paymentof those loans and the interest as they become due.
(2) The corporation may require in the case of any or allmortgage lenders that the collateral be lodged with a bank or trust companylocated in the state designated by the corporation as custodian. In the absenceof the requirement, a mortgage lender shall upon receipt of the loan proceedsfrom the corporation enter into an agreement with the corporation containingthose provisions that the corporation shall deem necessary to adequatelyidentify and maintain that collateral and service it and shall provide that themortgage lender shall hold the collateral as an agent for the corporation andshall be held accountable as the trustee of an express trust for theapplication and disposition thereof and the income therefrom solely for theuses and purposes in accordance with the provisions of the agreement. A copy ofeach agreement and any revisions or supplements shall be filed with thesecretary of state and no further filing of other action under chapter 9 oftitle 6A or any other law of the state shall be required to perfect thesecurity interest of the corporation in that collateral or any additions orsubstitutions, and the lien and trust for the benefit of the corporationcreated shall be binding from and after the time made against all partieshaving claims of any kind in tort, contract, or otherwise against the mortgagelender. The corporation may also establish any additional requirements that itshall deem necessary with respect to pledging, assigning, setting aside, orholding that collateral and making substitutions or additions to it anddisposition of income and receipts from it.
(j) The corporation shall require the submission to it byeach mortgage lender to which the corporation has made a loan of evidencesatisfactory to the corporation of the making of eligible mortgages as requiredby this section and prescribed by rules and regulations of the corporation andin connection therewith may inspect the books and records of the mortgagelender.
(k) The corporation may require as a condition of any loansto mortgage lenders those representations and warranties that it shalldetermine to be necessary to secure those loans and carry out the purposes ofthe chapter.
(l) All eligible mortgages made as required by this sectionshall comply with the applicable provisions of the laws of the state, and,where federal law or the law of another jurisdiction governs the affairs of themortgage lender, shall comply with applicable provisions of that law.
(m) Compliance by any mortgage lender with the terms of thissection and its undertaking to the corporation with respect to the making ofeligible mortgages may be enforced by a decree of the superior court for thecounty of Providence. The corporation may require as a condition of any loan toany mortgage lender the consent of the mortgage lender to the jurisdiction ofthe superior court for the county of Providence over this proceeding. Thecorporation may also require agreement by any mortgage lender, as a conditionof the loan to the mortgage lender, to the payment of penalties to thecorporation for violation by the mortgage lender of any provision of thissection or its undertaking to the corporation with respect to the making ofeligible mortgages, and those penalties shall be recoverable at the suit of thecorporation.
(n) If at any time the corporation shall determine that anadequate supply of funds exists in regular banking channels for eligiblemortgages, the corporation shall discontinue making loans to mortgage lendersuntil the time that the corporation may subsequently determine that the supplyof funds available for eligible mortgages is again inadequate.
(o) For the purposes of this section, the term "eligiblemortgage" means a loan made by a mortgage lender and secured by a mortgage uponresidential property, health care facilities, or housing for the elderly;provided that each mortgage loan shall be made to the original mortgagor fromthe proceeds of a loan made by the corporation to the mortgage lender pursuantto this section of the chapter.
§ 42-55-10 Terms and conditions of thepurchase and sale to mortgage lender of loans – Loans to mortgage lenders.– (a) No obligation purchased from a mortgage lender shall be eligible forpurchase or commitment to purchase by the corporation unless at or before thetime of transfer to the corporation the mortgage lender certifies that in itsjudgment the loan would in all respects be a prudent investment for its ownaccount.
(b) The corporation shall purchase mortgage loans at apurchase price equal to the outstanding principal balance; provided, however,that a discount from the principal balance or the payment of a premium may beemployed to effect a fair rate of return, as determined by the rate of returnon comparable investments under market conditions existing at the time of thepurchase. In addition to this payment of outstanding principal balance, thecorporation shall pay the accrued interest due on the date the loan orobligation is delivered against the payment.
(c) Loans purchased or sold may include, but shall not belimited to, loans which are insured, guaranteed, or assisted by the UnitedStates or a governmental agency or instrumentality thereof or for which thereis a commitment by the United States or a governmental agency orinstrumentality thereof to insure, guaranty, or assist that loan.
(d) The corporation shall from time to time adopt, modify, orrepeal rules and regulations governing the making of loans to mortgage lendersand the purchase and sale of mortgage loans and the application of the proceedsthereof, including rules and regulations as to any or all of the following:
(i) Procedures for the submission of requests or theinvitation of proposals for the purchase and sale of mortgage loans or forloans to mortgage lenders;
(ii) Limitations or restrictions as to the number of familyunits, location, or other qualifications or characteristics of residences to befinanced by those mortgage loans;
(iii) Restrictions as to the interest rates on those mortgageloans or the return realized by mortgage lenders;
(iv) Requirements as to commitments by mortgage lenders withrespect to the application of the proceeds of that purchase or loan;
(v) Schedules of any fees and charges necessary to providefor the expenses and reserves of the corporation; and
(vi) Any other matters related to the duties and the exerciseof the powers of the corporation under this section.
(2) These rules and regulations shall be designed toeffectuate the general purposes of this chapter and the following specificobjectives:
(i) The expansion of the supply of funds in the stateavailable for mortgage loans for residential housing for occupancy by personsand families of low and moderate income;
(ii) Provision of the additional housing needed to remedy theshortage of adequate housing in the state and eliminate the existence of alarge number of substandard dwellings; and
(iii) The restriction of the financial return and benefit onthose mortgage loans to that level necessary to protect against the realizationby mortgage lenders of a financial return or benefit in excess of prevailingmarket conditions.
(e) The corporation may from time to time make loans tomortgage lenders so as to furnish, as rapidly as possible, funds to mortgagelenders for eligible mortgages.
(f) Loans to mortgage lenders shall be general obligations ofthe respective mortgage lenders owing them and shall bear the date or dates,shall mature at the time or times, shall be evidenced by a note, bonds, orother certificate of indebtedness, shall be subject to prepayment, and shallcontain other provisions consistent with this section, all as the corporationshall by resolution determine.
(g) Any other provision of this chapter to the contrarynotwithstanding, the interest rate or rates and other terms of the loans tomortgage lenders made from the proceeds of any issue of bonds of thecorporation shall be at least sufficient so as to assure the payment of thebonds, and the interest on the bonds as they become due, from the amountsreceived by the corporation in repayment of loans and interest on the loans.
(h) The corporation shall require as a condition of each loanto a mortgage lender that that mortgage lender shall on or prior to the onehundred-eightieth (180th) day or an earlier day that shall be prescribed by therules and regulations of the corporation) following the receipt of the loanproceeds have entered into written commitments to make, and shall proceed aspromptly as practicable to make and disburse from those loan proceeds, eligiblemortgages in an aggregate principal amount equal to the amount of the loan.
(i) The corporation shall require that the loans to mortgagelenders shall be additionally secured as to the payment of both principal andinterest by a pledge of and lien upon collateral security in those amounts thatthe corporation shall by resolution determine to be necessary to assure thepayment of the loans and the interest on the loans as they become due. Thecollateral security shall consist of:
(i) Direct obligations of, or obligations guaranteed by, theUnited States;
(ii) Bonds, debentures, notes, or other evidences ofindebtedness, 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, federal landbanks, the federal national mortgage association, or the government nationalmortgage association;
(iii) Direct obligations of, or obligations guaranteed by,the state; or
(iv) Mortgages insured or guaranteed by the United States oran instrumentality of the United States as to payments of principal andinterest;
(v) Mortgages secured by real estate on which there islocated single family residential housing and which is insured by a mortgageguaranty insurance company licensed to do business by the state and approved bythe corporation;
(vi) Uninsured mortgages secured by real estate on whichthere is located single family residential housing; or
(vii) Those other obligations and securities that thecorporation shall by resolution determine to be necessary to assure the paymentof those loans and the interest as they become due.
(2) The corporation may require in the case of any or allmortgage lenders that the collateral be lodged with a bank or trust companylocated in the state designated by the corporation as custodian. In the absenceof the requirement, a mortgage lender shall upon receipt of the loan proceedsfrom the corporation enter into an agreement with the corporation containingthose provisions that the corporation shall deem necessary to adequatelyidentify and maintain that collateral and service it and shall provide that themortgage lender shall hold the collateral as an agent for the corporation andshall be held accountable as the trustee of an express trust for theapplication and disposition thereof and the income therefrom solely for theuses and purposes in accordance with the provisions of the agreement. A copy ofeach agreement and any revisions or supplements shall be filed with thesecretary of state and no further filing of other action under chapter 9 oftitle 6A or any other law of the state shall be required to perfect thesecurity interest of the corporation in that collateral or any additions orsubstitutions, and the lien and trust for the benefit of the corporationcreated shall be binding from and after the time made against all partieshaving claims of any kind in tort, contract, or otherwise against the mortgagelender. The corporation may also establish any additional requirements that itshall deem necessary with respect to pledging, assigning, setting aside, orholding that collateral and making substitutions or additions to it anddisposition of income and receipts from it.
(j) The corporation shall require the submission to it byeach mortgage lender to which the corporation has made a loan of evidencesatisfactory to the corporation of the making of eligible mortgages as requiredby this section and prescribed by rules and regulations of the corporation andin connection therewith may inspect the books and records of the mortgagelender.
(k) The corporation may require as a condition of any loansto mortgage lenders those representations and warranties that it shalldetermine to be necessary to secure those loans and carry out the purposes ofthe chapter.
(l) All eligible mortgages made as required by this sectionshall comply with the applicable provisions of the laws of the state, and,where federal law or the law of another jurisdiction governs the affairs of themortgage lender, shall comply with applicable provisions of that law.
(m) Compliance by any mortgage lender with the terms of thissection and its undertaking to the corporation with respect to the making ofeligible mortgages may be enforced by a decree of the superior court for thecounty of Providence. The corporation may require as a condition of any loan toany mortgage lender the consent of the mortgage lender to the jurisdiction ofthe superior court for the county of Providence over this proceeding. Thecorporation may also require agreement by any mortgage lender, as a conditionof the loan to the mortgage lender, to the payment of penalties to thecorporation for violation by the mortgage lender of any provision of thissection or its undertaking to the corporation with respect to the making ofeligible mortgages, and those penalties shall be recoverable at the suit of thecorporation.
(n) If at any time the corporation shall determine that anadequate supply of funds exists in regular banking channels for eligiblemortgages, the corporation shall discontinue making loans to mortgage lendersuntil the time that the corporation may subsequently determine that the supplyof funds available for eligible mortgages is again inadequate.
(o) For the purposes of this section, the term "eligiblemortgage" means a loan made by a mortgage lender and secured by a mortgage uponresidential property, health care facilities, or housing for the elderly;provided that each mortgage loan shall be made to the original mortgagor fromthe proceeds of a loan made by the corporation to the mortgage lender pursuantto this section of the chapter.
§ 42-55-10 Terms and conditions of thepurchase and sale to mortgage lender of loans – Loans to mortgage lenders.– (a) No obligation purchased from a mortgage lender shall be eligible forpurchase or commitment to purchase by the corporation unless at or before thetime of transfer to the corporation the mortgage lender certifies that in itsjudgment the loan would in all respects be a prudent investment for its ownaccount.
(b) The corporation shall purchase mortgage loans at apurchase price equal to the outstanding principal balance; provided, however,that a discount from the principal balance or the payment of a premium may beemployed to effect a fair rate of return, as determined by the rate of returnon comparable investments under market conditions existing at the time of thepurchase. In addition to this payment of outstanding principal balance, thecorporation shall pay the accrued interest due on the date the loan orobligation is delivered against the payment.
(c) Loans purchased or sold may include, but shall not belimited to, loans which are insured, guaranteed, or assisted by the UnitedStates or a governmental agency or instrumentality thereof or for which thereis a commitment by the United States or a governmental agency orinstrumentality thereof to insure, guaranty, or assist that loan.
(d) The corporation shall from time to time adopt, modify, orrepeal rules and regulations governing the making of loans to mortgage lendersand the purchase and sale of mortgage loans and the application of the proceedsthereof, including rules and regulations as to any or all of the following:
(i) Procedures for the submission of requests or theinvitation of proposals for the purchase and sale of mortgage loans or forloans to mortgage lenders;
(ii) Limitations or restrictions as to the number of familyunits, location, or other qualifications or characteristics of residences to befinanced by those mortgage loans;
(iii) Restrictions as to the interest rates on those mortgageloans or the return realized by mortgage lenders;
(iv) Requirements as to commitments by mortgage lenders withrespect to the application of the proceeds of that purchase or loan;
(v) Schedules of any fees and charges necessary to providefor the expenses and reserves of the corporation; and
(vi) Any other matters related to the duties and the exerciseof the powers of the corporation under this section.
(2) These rules and regulations shall be designed toeffectuate the general purposes of this chapter and the following specificobjectives:
(i) The expansion of the supply of funds in the stateavailable for mortgage loans for residential housing for occupancy by personsand families of low and moderate income;
(ii) Provision of the additional housing needed to remedy theshortage of adequate housing in the state and eliminate the existence of alarge number of substandard dwellings; and
(iii) The restriction of the financial return and benefit onthose mortgage loans to that level necessary to protect against the realizationby mortgage lenders of a financial return or benefit in excess of prevailingmarket conditions.
(e) The corporation may from time to time make loans tomortgage lenders so as to furnish, as rapidly as possible, funds to mortgagelenders for eligible mortgages.
(f) Loans to mortgage lenders shall be general obligations ofthe respective mortgage lenders owing them and shall bear the date or dates,shall mature at the time or times, shall be evidenced by a note, bonds, orother certificate of indebtedness, shall be subject to prepayment, and shallcontain other provisions consistent with this section, all as the corporationshall by resolution determine.
(g) Any other provision of this chapter to the contrarynotwithstanding, the interest rate or rates and other terms of the loans tomortgage lenders made from the proceeds of any issue of bonds of thecorporation shall be at least sufficient so as to assure the payment of thebonds, and the interest on the bonds as they become due, from the amountsreceived by the corporation in repayment of loans and interest on the loans.
(h) The corporation shall require as a condition of each loanto a mortgage lender that that mortgage lender shall on or prior to the onehundred-eightieth (180th) day or an earlier day that shall be prescribed by therules and regulations of the corporation) following the receipt of the loanproceeds have entered into written commitments to make, and shall proceed aspromptly as practicable to make and disburse from those loan proceeds, eligiblemortgages in an aggregate principal amount equal to the amount of the loan.
(i) The corporation shall require that the loans to mortgagelenders shall be additionally secured as to the payment of both principal andinterest by a pledge of and lien upon collateral security in those amounts thatthe corporation shall by resolution determine to be necessary to assure thepayment of the loans and the interest on the loans as they become due. Thecollateral security shall consist of:
(i) Direct obligations of, or obligations guaranteed by, theUnited States;
(ii) Bonds, debentures, notes, or other evidences ofindebtedness, 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, federal landbanks, the federal national mortgage association, or the government nationalmortgage association;
(iii) Direct obligations of, or obligations guaranteed by,the state; or
(iv) Mortgages insured or guaranteed by the United States oran instrumentality of the United States as to payments of principal andinterest;
(v) Mortgages secured by real estate on which there islocated single family residential housing and which is insured by a mortgageguaranty insurance company licensed to do business by the state and approved bythe corporation;
(vi) Uninsured mortgages secured by real estate on whichthere is located single family residential housing; or
(vii) Those other obligations and securities that thecorporation shall by resolution determine to be necessary to assure the paymentof those loans and the interest as they become due.
(2) The corporation may require in the case of any or allmortgage lenders that the collateral be lodged with a bank or trust companylocated in the state designated by the corporation as custodian. In the absenceof the requirement, a mortgage lender shall upon receipt of the loan proceedsfrom the corporation enter into an agreement with the corporation containingthose provisions that the corporation shall deem necessary to adequatelyidentify and maintain that collateral and service it and shall provide that themortgage lender shall hold the collateral as an agent for the corporation andshall be held accountable as the trustee of an express trust for theapplication and disposition thereof and the income therefrom solely for theuses and purposes in accordance with the provisions of the agreement. A copy ofeach agreement and any revisions or supplements shall be filed with thesecretary of state and no further filing of other action under chapter 9 oftitle 6A or any other law of the state shall be required to perfect thesecurity interest of the corporation in that collateral or any additions orsubstitutions, and the lien and trust for the benefit of the corporationcreated shall be binding from and after the time made against all partieshaving claims of any kind in tort, contract, or otherwise against the mortgagelender. The corporation may also establish any additional requirements that itshall deem necessary with respect to pledging, assigning, setting aside, orholding that collateral and making substitutions or additions to it anddisposition of income and receipts from it.
(j) The corporation shall require the submission to it byeach mortgage lender to which the corporation has made a loan of evidencesatisfactory to the corporation of the making of eligible mortgages as requiredby this section and prescribed by rules and regulations of the corporation andin connection therewith may inspect the books and records of the mortgagelender.
(k) The corporation may require as a condition of any loansto mortgage lenders those representations and warranties that it shalldetermine to be necessary to secure those loans and carry out the purposes ofthe chapter.
(l) All eligible mortgages made as required by this sectionshall comply with the applicable provisions of the laws of the state, and,where federal law or the law of another jurisdiction governs the affairs of themortgage lender, shall comply with applicable provisions of that law.
(m) Compliance by any mortgage lender with the terms of thissection and its undertaking to the corporation with respect to the making ofeligible mortgages may be enforced by a decree of the superior court for thecounty of Providence. The corporation may require as a condition of any loan toany mortgage lender the consent of the mortgage lender to the jurisdiction ofthe superior court for the county of Providence over this proceeding. Thecorporation may also require agreement by any mortgage lender, as a conditionof the loan to the mortgage lender, to the payment of penalties to thecorporation for violation by the mortgage lender of any provision of thissection or its undertaking to the corporation with respect to the making ofeligible mortgages, and those penalties shall be recoverable at the suit of thecorporation.
(n) If at any time the corporation shall determine that anadequate supply of funds exists in regular banking channels for eligiblemortgages, the corporation shall discontinue making loans to mortgage lendersuntil the time that the corporation may subsequently determine that the supplyof funds available for eligible mortgages is again inadequate.
(o) For the purposes of this section, the term "eligiblemortgage" means a loan made by a mortgage lender and secured by a mortgage uponresidential property, health care facilities, or housing for the elderly;provided that each mortgage loan shall be made to the original mortgagor fromthe proceeds of a loan made by the corporation to the mortgage lender pursuantto this section of the chapter.
