Sec. 34.04.02.10. Default

A. Modification.

(1) In the event of default of a loan the Trust may, subject to the approval of the Trustees and the Secretary:

(a) Modify the rate of interest;

(b) Defer payment of principal, interest, or both;

(c) Modify the term of the loan; or

(d) Modify the loan in any other manner in order to promote repayment of the loan and achieve the purposes of the Program.

(2) The Trust also shall obtain the approval of the Board of Public Works for any modification described in §A(1) of this regulation to a loan that was initially approved by the Board.

B. Foreclosure.

(1) In the event of default of a loan the Trust may, without approval or execution by the Board of Public Works but subject to the approval of the Trustees and the Secretary, take title to the property by foreclosure or by deed in lieu of foreclosure and obtain and seek enforcement of a deficiency judgment.

(2) Notwithstanding the provisions of State Finance and Procurement Article, §5A-327(i)(4), Annotated Code of Maryland, if the Trust has obtained title to the property in accordance with §B(1) of this regulation, the Trust shall secure the approval of the Board of Public Works, the Trustees, and the Secretary before it reconveys title to the property.