Md. Code Regs. 34.04.02.10

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

Section 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.

(3) The Trust may modify a transfer in any manner to achieve the purposes of the Program, subject to the approval of the Trustees and the Secretary for modifications that change the use of a transfer.

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.

C. Recapture of Transfers. In the event that a transferee fails to comply with the terms and conditions of a transfer, subject to the approval of the Trustees and the Secretary, the Trust may revoke the transfer and require that the transferee reimburse all or a portion of the transfer.

Md. Code Regs. 34.04.02.10

Regulations .10 amended effective 51:16 Md. R. 744, eff. 8/19/2024.