16.51 - ADDITIONAL LOAN PROGRAM.

        16.51  ADDITIONAL LOAN PROGRAM.
         1.  The authority may enter into a loan agreement with a housing
      sponsor to finance in whole or in part the acquisition of housing by
      construction or purchase.  The repayment obligation of the housing
      sponsor may be unsecured, secured by a mortgage or security
      agreement, or secured by other security as the authority deems
      advisable, and may be evidenced by one or more notes of the housing
      sponsor.  The loan agreement may contain terms and conditions the
      authority deems advisable.
         2.  The authority may issue its bonds and notes for the purposes
      set forth in subsection 1 and may enter into a lending agreement or
      purchase agreement with one or more bondholders or noteholders
      containing the terms and conditions of the repayment of and the
      security for the bonds or notes.  The authority and the bondholders
      or noteholders may enter into an agreement to provide for any of the
      following:
         a.  That the proceeds of the bonds and notes and the
      investments of the proceeds may be received, held, and disbursed by
      the bondholders or noteholders, or by a trustee or agent designated
      by the authority.
         b.  That the bondholders or noteholders or a trustee or agent
      designated by the authority, may collect, invest, and apply the
      amounts payable under the loan agreement or any other security
      instrument securing the debt obligation of the housing sponsor.
         c.  That the bondholders or noteholders may enforce the
      remedies provided in the loan agreement or security instrument on
      their own behalf without the appointment or designation of a trustee
      and if there is a default in the principal of or interest on the
      bonds or notes or in the performance of any agreement contained in
      the agreement or instrument, the payment or performance may be
      enforced in accordance with the provisions contained in the agreement
      or instrument.
         d.  That if there is a default in the payment of the principal
      or interest on a mortgage or security instrument or a violation of an
      agreement contained in the mortgage or security instrument, the
      mortgage or security instrument may be foreclosed or enforced and any
      collateral sold under proceedings or actions permitted by law and a
      trustee under the mortgage or security agreement or the holder of any
      bonds or notes secured thereby may become a purchaser if it is the
      highest bidder.
         e.  Other terms and conditions.
         3.  The authority may provide in the resolution authorizing the
      issuance of the bonds or notes that the principal and interest shall
      be limited obligations payable solely out of the revenues derived
      from the debt obligation, collateral, or other security furnished by
      or on behalf of the housing sponsor, and that the principal and
      interest does not constitute an indebtedness of the authority or a
      charge against its general credit or general fund.
         4.  The powers granted the authority under this section are in
      addition to other powers contained in this chapter.  All other
      provisions of this chapter, except section 16.28, subsection 4, apply
      to bonds or notes issued pursuant to and powers granted to the
      authority under this section except to the extent that they are
      inconsistent with this section.  
         Section History: Early Form
         [82 Acts, ch 1187, § 7] 
         Section History: Recent Form
         C83, § 220.51
         83 Acts, ch 124, § 5
         C93, § 16.51