Md. Code Regs. 05.03.05.02
The objective of the Program is to provide an eligible borrower with a line of credit, secured by the borrower's home, which is based on the equity in the home and the age of the borrower. The loan proceeds are to be used for housing-related expenses and other personal expenses which enable the borrowers to continue to occupy their homes. In general, payment of principal or interest is not required until the borrower dies or moves out of the home, or until the home is sold, except that the Program has the right to foreclose in the event of a default. In general, the Program will look to the equity in the home for repayment of principal and interest. There are restrictions on the line of credit, including a limit on the amount the borrower can draw each year on the line of credit, and the Program's right to refuse to make disbursements to a defaulting borrower. In addition, because Program funding is appropriated annually by the legislature, there is no assurance that an approved line of credit can be drawn on by a borrower in any year, or that the borrower will ever be able to draw on the entire amount of the borrower's maximum line of credit.
Md. Code Regs. 05.03.05.02
Regulations .02 adopted effective December 11, 1989 (16:24 Md. R. 2616)