Limitations on purchases, loans, and mortgages

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  • (a) By rules and regulations the Authority shall insure that no proceeds of bonds or notes issued pursuant to this chapter shall be used:

    • (1) for purposes other than those which comply with the United States Internal Revenue Code of 1954, as amended;

    • (2) for loans unless such loans qualify pursuant to the provisions of this chapter;

    • (3) for mortgage loans unless such loans are for the purchase, construction, rehabilitation or home improvement of low and moderate income housing.

  • (b) The Authority shall determine what constitutes low and moderate income housing and the qualification of low and moderate income persons and households.

  • (c) Through the establishment and maintenance of an official register, the Authority shall insure that with respect to individual applicants for mortgage loans and loans under this chapter who are substantially equal in eligibility and credit risk shall be recipients of loan monies on a first-come, first-served basis, subject to applicable law. The official register shall be open for public inspection.


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