LD 1766
pg. 19
Page 18 of 21 PUBLIC Law Chapter 537 Page 20 of 21
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LR 2611
Item 1
 
3. Security for loans. With respect to any mortgage loans
that may be insured under this subchapter, interest rate swap
agreements benefiting eligible enterprises and loans to the
authority to be used for direct loans to eligible enterprises or
students pursuing higher education, the authority may provide
that such mortgage loans, interest rate swap agreements or loans
to the authority must be secured by one or more capital reserve
funds established pursuant to subsection 1 instead of or in
addition to mortgage insurance provided under other sections of
this subchapter. Limitations and requirements applicable to
mortgage insurance under sections 1026-A to 1028 are applicable
to mortgage loans, but not interest rate swap agreements or loans
to the authority, to which one or more capital reserve funds
apply as if the mortgage loans were backed by mortgage insurance.
Capital reserve funds may secure interest rate swap agreements
pertaining to eligible enterprises that demonstrate the ability
to honor the swap agreement as determined by the authority and
that do not have as a principal element space for retail sales or
professional office space, as defined by the authority. Any
commitment with respect to a mortgage loan executed and delivered
pursuant to this section is conclusive evidence of the
eligibility of the mortgage loan for insurance and the validity
of any such commitment or contract is incontestable in the hands
of a mortgage lender, swap counterparty or lender to the
authority except for fraud or misrepresentation on the part of
the mortgage lender, swap counterparty or lender to the
authority. Mortgages Loans secured by capital reserve funds
under this section are made legal investments for all insurance
companies, trust companies, banks, investment companies, savings
banks, savings and loan associations, executors, trustees and
other fiduciaries, public and private pension or retirement funds
and other persons.

 
Sec. 47. 10 MRSA §1032, sub-§6, as amended by PL 1997, c. 217, §2, is
further amended to read:

 
6. Obligations outstanding. The authority may not have at
any one time outstanding obligations to which this section is
stated in any agreement of the authority to apply in principal
amount exceeding $150,000,000, less the amount of revenue
obligation securities to which section 1053 is stated in the
trust agreement or other document to apply. Amounts of revenue
obligation securities that are not taken into account pursuant to
section 1053, subsection 6, may not be taken into account for
purposes of determining the amount that may be outstanding under
this section. Of the $150,000,000, $1,000,000 must be reserved
for loans insured pursuant to section 1026-O. Notwithstanding
the foregoing, the authority may additionally have outstanding at
any one time up to $3,500,000 of obligations relating to direct
loans to students pursuing higher education.

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