78-137 AUTHORIZING PROVISION OF HOME RULE MORTGAGE FINANCING AND PROVIDING ISSUANCE OF REVENUE BONDS

Home Browse Search

and (e) preserve and increase the municipality' s ad valorem tax base; and the foregoing are hereby determined and declared to be public purposes and functions pertaining to the government and affairs of the municipality. Section 3. Additional Powers . In addition to powers which the municipality may now have, the municipality shall have all powers necessary to accomplish the purposes of this Ordinance including, but not limited to, the following: (a) Home Mortgages. The municipality shall have the power: (1) To acquire, and contract and enter into advance commitments to acquire, home mortgages owned by lending institutions at such purchase prices and upon such other terms and conditions as shall be determined by the munici- paiity or such other person as it may designate as its agent, to make and execute contracts with lending institutions for the origination and servicing of home mortgages and to pay � the reasonable value of services rendered under those contracts. (2) To make loans to lending institutions under terms and conditions which, in addition to other provisions as determined by the municipality, shall require the lending institutions to use substantially all of the net proceeds thereof, directly or indirectly, for the making of home mortgages in an aggregate principal amount substantially equal to the amount of such net proceeds. (3) To establish, by rules or regulations, in ordinances relating to any issuance of bonds or in any financing documents relating to such issuance, such standards and requirements applicable to the purchase of home mortgages or the making of loans to lending institutions as the municipality deems necessary or desirable, including but not limited to: (i) the time within which lending institutions must make commitments and disbursements for home mortgages; (ii) the location and other characteristics of homes to be financed by home mortgages; (iii) the terms and conditions of home mortga_qes to be acquired; (iv) the amounts and types of insurance coverages required on home, home mortgages and bonds ; (v) the representations and warranties of lending institutions confirming compliance with such standards and requirements; (vi) restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions; {vii) the type and amount of collateral security to be provided to assure repayment of any loans from the municipality and to assure repayment of bonds; (viii) any other matters related to the purchase of home mortgages or the making of loans to lending institutions as shall be deemed relevant by the municipality; provided, however, that (x) no lending institution shall charge and retain an origination fee in excess of 3� of the principal - 3 -