State Codes and Statutes
Statutes > Utah > Title-09 > Chapter-04 > 9-4-9119-4-911. Corporation -- Additional powers.
(1) To accomplish the declared purposes of this part, the corporation has the followingpowers in addition to others granted in this part:
(a) to purchase mortgage loans originated by mortgage lenders or local public bodiesmade for the purpose of financing the construction, development, rehabilitation, or purchase ofresidential housing for low and moderate income persons;
(b) to make mortgage loans and to provide financial assistance to housing sponsors forthe purpose of financing the construction, development, rehabilitation, or purchase of residentialhousing for low and moderate income persons;
(c) to make mortgage loans and provide financial assistance to housing sponsors for thepurpose of financing the operations of a housing development that are necessary or desirable toenable the housing development to remain available as residential housing for low and moderateincome persons, whether or not the housing development has been financed by the corporation;
(d) to provide financial assistance to any housing authority created under Part 6, whichhousing authorities may enter into commitments for and accept loans for a housing project orprojects as defined in Section 9-4-602; and
(e) to make mortgage loans and to provide financial assistance to low and moderateincome persons for the construction, rehabilitation, or purchase of residential housing.
(2) Bonds to purchase loans pursuant to Subsection (1)(a) shall be issued only after adetermination by the corporation that the loans are not otherwise available upon reasonablyequivalent terms and conditions from private lenders.
(3) Loans for owner-occupied housing made pursuant to Subsection (1)(a) may notinclude a penalty for prepayment.
(4) The corporation shall make rules or adopt policies and procedures to govern theactivities authorized under this section including rules, policies, and procedures as to any or all ofthe following:
(a) procedures for the submission of requests or the invitation of proposals for thepurchase and sale of mortgage loans and the making of mortgage loans;
(b) rates, fees, charges, and other terms and conditions of originating or servicingmortgage loans in order to protect against a realization of an excessive financial return or benefitby the originator or servicer;
(c) the type and amount of collateral, payment bonds, performance bonds, or othersecurity to be provided for construction loans made by the corporation;
(d) the nature and amounts of fees to be charged by the corporation to provide forexpenses and reserves of the corporation;
(e) procedures allowing the corporation to prohibit persons who fail to comply with therules of the corporation with respect to the operations of any program of the corporation fromparticipating, either directly or indirectly, in the programs of the corporation;
(f) the terms and conditions under which the corporation may purchase and makemortgage loans under each program of the corporation;
(g) the terms and conditions under which the corporation may provide financial assistanceunder each program of the corporation;
(h) the terms and conditions under which the corporation may guarantee mortgage loansunder each program of the corporation; and
(i) any other matters related to the duties or exercise of powers under this section.
(5) (a) The trustees of the corporation shall elect the directors, trustees, members, if any,of each subsidiary. Service by a trustee of the corporation in any such capacity does not constitutea conflict of interest for any purpose. The corporation may delegate any of its powers and dutiesunder this part to any subsidiary. Subsidiaries shall constitute legal entities separate and distinctfrom each other, the corporation, and the state.
(b) Each note, bond, and other obligation of a subsidiary shall contain on its face astatement to the effect that:
(i) the subsidiary is obligated to pay the same solely from the revenues or other funds ofthe subsidiary;
(ii) neither the corporation nor the state nor any of its political subdivisions is obligated topay the same; and
(iii) neither the faith and credit nor the taxing power of the state or any of its politicalsubdivisions is pledged to the payment of principal, or redemption price of, or the interest on thenote, bond, or other obligation.
(c) Upon dissolution of any subsidiary of the corporation, any assets shall revert to thecorporation or to any successor to the corporation or, failing this succession, to the state.
(6) (a) The corporation may:
(i) enter into interest rate contracts that its trustees determine are necessary, convenient, orappropriate for the control or management of debt or for the cost of servicing debt; and
(ii) use corporation funds to satisfy its payment obligations under those contracts.
(b) Interest rate contracts may contain payment, security, default, termination, remedy,and other terms and conditions that the trustees consider appropriate.
(c) Neither interest rate contracts nor funds used in connection with interest rate contractsmay be considered a deposit or investment.
Amended by Chapter 319, 2001 General Session
