Md. Code Regs. 05.13.04.16

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.13.04.16 - Reserve Account Premium Charges

A. The Secretary may, from time to time, by written determination, establish minimum and maximum premium charges payable by borrowers in connection with loans filed for enrollment.

B. Lender Premium Deposit Into the Reserve Account.

(1) The lender shall deposit into the reserve account the premium charges payable by the lender and the borrower in connection with a loan filed for enrollment.

(2) The premium paid by the borrower shall be not less than the minimum premium charge, and not more than the maximum premium charge, established by the Secretary under §A of this regulation. The lender may contribute any portion of the borrower's premium payment, and may recover the cost of this contribution from the borrower in any manner on which the lender and borrower agree.

(3) The premium paid by the lender shall be equal to the premium paid by the borrower, including any portion of the borrower's premium that may be contributed by the lender under §B(2) of this regulation. The lender may recover the cost of the lender's premium payment from the borrower in any manner on which the lender and borrower agree.

C. When enrolling a loan, the Department shall transfer from the Fund into the reserve account a premium amount equal to the combined premiums paid into the reserve account by the borrower and the lender for each enrolled loan.

D. The Secretary may, from time to time, by written determination, designate one or more areas lying within priority funding areas as CAP targeted areas, and may authorize the Department to make an increased premium payment for an enrolled loan made with respect to a project located in a CAP targeted area. The increased premium payment may, in the discretion of the Secretary, be in addition to, or in lieu of, the premium paid by the borrower under §B of this regulation.

E. Unless money is paid out of the reserve account according to the specific terms of this chapter, all money paid into the reserve account by the lender shall remain in that account.

Md. Code Regs. 05.13.04.16