(a) The Executive Director of the Virgin Islands Housing Finance Authority is authorized to consent to the mortgaging of homestead land to a lending institution for the purpose of securing a construction loan by the homestead allottee, which consent may include the following:
(1) Subordinating the rights of the Government under this title in the mortgage for all purposes including foreclosure proceedings by the mortgagee in the event of default by the mortgagor.
(2) Any other provision which, in the opinion of the Executive Director of the Virgin Islands Housing Finance Authority, would place a mortgage on homestead land in the same position, legally and businesswise, as a mortgage customarily used in the community covering non-homestead land.
(b) Any subordination agreement under this section shall be made subject to the following conditions:
(1) That the Executive Director of the Virgin Islands Housing Finance Authority finds that the total value of the land and any improvements thereon is sufficient to protect the interest of the Government as the holder of a second priority mortgage.
(2) That the building or other improvements to be constructed on the homestead land be insured for a sum sufficient to pay off the mortgage given for such construction and the amount still due to the government on its mortgage, together with interest, and that such insurance policy be so written as to insure the first mortgagee and the Government, as their interests may appear.
(c) For the purposes of this section homestead land shall be deemed to include any real property with respect to which a loan may be made under the provisions of section 9 of this title.