Sec. 05.06.02.02. Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Act" means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of Maryland.

(2) "Borrower" means the original borrower under a loan and the borrower's successors and assigns by operation of law or as approved by the Fund.

(3) "Bridge loan" means a loan to provide interim financing until equity capital contributions are made by investors in a project that qualifies for federal low income housing tax credits.

(4) "Construction risk" means the risk that a borrower will be unable to complete construction or rehabilitation of a project in the time anticipated at closing of the bridge loan.

(5) "Default" means the failure of the borrower to:

(a) Make required payments under the loan when due; or

(b) Perform any other obligation under the loan after the notice, lapse of time, and opportunity to correct, if any, which may be provided in the loan.

(6) "Fund (MHF)" means the Maryland Housing Fund, an agency within the Division of Credit Assurance, and, when appropriate, its authorized officers or personnel.

(7) "Initial rent-up" means that period before the number of units required to qualify for low-income housing credits is rented.

(8) "Insurance Agreement" means the Amended and Restated Multi-Family Insurance Agreement governing insurance of multi-family rental housing developments by the Fund dated August 30, 1988, as amended and restated on February 16, 2006, by and between the Fund and the Community Development Administration.

(9) "Investor" means an individual or an entity that makes an equity capital contribution to the borrower in exchange for a limited partnership or nonmanaging member interest in the borrower.

(10) Mortgage.

(a) "Mortgage" means a written instrument evidencing or creating a lien against real property for the purpose of providing collateral to secure the repayment of a debt.

(b) "Mortgage" includes a deed of trust.

(11) "Mortgagee" means the original lender under a loan and its successors and assigns.

(12) "Multi-family reserve" shall have the meaning ascribed to that term in the Insurance Agreement.

(13) "Operating fund" means the net amount of money or securities on deposit to the credit of the Fund with the State Treasurer and not allocated to any of the Fund's reserve funds.

(14) "Project" means a development of one or more structures containing residential units and which may include ancillary commercial, service, and social facilities, and the real property upon which the development is situated.

(15) "Secretary" means the Secretary of Housing and Community Development.