2013 Maryland Code
HOUSING AND COMMUNITY DEVELOPMENT
§ 3-205 - Powers of Department

§3-205.

(a) In this section, “development costs” has the meaning stated in § 4-201 of this article.

(b) The Department, in its own name or in the name of the Fund:

(1) may insure or guarantee on terms that it specifies a mortgage or pool of mortgages offered or bonds or notes issued that are eligible for insurance under § 3-202 of this subtitle;

(2) may insure a total of not more than $30,000,000 of bridge loans that are:

(i) made for part of the development costs of rental housing projects that are awarded federal low income housing tax credits; and

(ii) secured by personal rather than real property;

(3) may provide other forms of credit enhancement on terms that it specifies for qualified lenders and borrowers who otherwise cannot get credit enhancement in the private market;

(4) may issue obligations in any form backed by a pool of mortgages, including:

(i) securities;

(ii) certificates of participation;

(iii) grantor trusts;

(iv) collateralized mortgage obligations; and

(v) pass-through certificates;

(5) notwithstanding Titles 10 through 17 of the State Finance and Procurement Article, after a default under an obligation that is insured or otherwise backed by a credit enhancement under this subtitle, may acquire, hold, improve, operate pending sale or other disposition, sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber:

(i) real property or an interest in real property;

(ii) personal property or an interest in personal property; or

(iii) evidence of indebtedness, including:

1. pass-through certificates;

2. residual interests; and

3. other securities backed by real estate or a mortgage; and

(6) in connection with a property, whether or not insured by the Fund, acquired by the Department or the Fund through foreclosure, through deed in lieu of foreclosure, or in settlement for a claim for loss:

(i) may contract with a private party for services to secure, maintain, operate, or improve the property in anticipation of disposition of the property, without requiring that the contract comply with Division II of the State Finance and Procurement Article; or

(ii) may make a mortgage loan to assist in the disposition of the property.