§ 5-20-2-7 — Powers

Indiana § 5-20-2-7

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 20: HOUSING
• Ch. 2: Financing of Housing

Text

Powers. A county or municipality to which this
chapter applies has all powers necessary to accomplish the purposes of
this chapter including, but not limited to, the power:
(1) to purchase, contract and enter into advance commitments to
purchase, home mortgages owned by lending institutions at such
prices and upon such other terms and conditions as shall be
determined by the county or municipality, to make and execute
contracts with one (1) or more 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 county or 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 any ordinance relating
to the issuance of bonds or in any financing documents relating to
such issuance, such standards and requirements applicable to the
purchase of home mortgages from or the making of loans to
lending institutions as the county or municipality deems necessary
or desirable, including but not limited to:
(A) the time within which lending institutions must make
commitments and disbursements for home mortgages;
(B) the location and other characteristics of homes to be financed
by home mortgages;
(C) the terms and conditions of home mortgages to be acquired;
(D) the amounts and types of insurance coverage required on
homes, home mortgages and bonds;
(E) the representations and warranties of lending institutions
confirming compliance with such standards and requirements;
(F) restrictions as to interest rates and other terms of home
mortgages or the return realized therefrom by lending institutions;
(G) the type and amount of collateral security to be provided to
assure repayment of any loans from the county or municipality
and to assure repayment of bonds; and
(H) any other matters relating to the purchase of home mortgages
or the making of loans to lending institutions as shall be deemed
relevant by the county or municipality; however, no lending
institution shall charge and retain an origination fee in excess of
three percent (3%) of the principal amount of any such home
mortgage;
(4) to require from each lending institution from which home
mortgages are purchased or to which loans are made the
submission, at the time of the purchase or loan, of evidence
satisfactory to the county or municipality of the ability and
intention of the lending institution to make home mortgages, and
the submission, within the time specified by the county or
municipality for making disbursements for home mortgages, of
evidence satisfactory to the county or municipality of the making
of home mortgages and of compliance with any standards and
requirements established by the county or municipality;
(5) to issue bonds to defray, in whole or in part:
(A) the costs of purchasing, or funding the making of home
mortgages;
(B) the costs of studies and surveys, insurance premiums,
underwriting fees, legal, accounting, and marketing services
incurred in connection with the issuance and sale of bonds,
including bonds and interest reserve accounts and trustee,
custodian and rating agency fees; and
(C) those other costs that are reasonably related to (A) and (B);
(6) to sell or otherwise dispose of any home mortgages, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing home mortgages, so that
the revenues and receipts to be derived with respect to the home
mortgages, together with any insurance proceeds, reserve
accounts and earnings thereon shall be designed to produce
revenues and receipts at least sufficient to provide for the prompt
payment at maturity of principal, interest and redemption
premiums, if any, upon all bonds issued to finance these costs;
(7) to pledge any revenues and receipts to be received from any
home mortgages or other sources provided in this chapter to the
punctual payment of bonds authorized under this chapter, and the
interest and redemption premiums, if any, thereon;
(8) to mortgage, pledge or grant security interests in any home
mortgages, notes or other property in favor of the holder or
holders of bonds issued therefor;
(9) to sell and convey any home mortgages for those prices and at
those times that the governing body determines;
(10) to issue its bonds to refund in whole or in part at any time
bonds previously issued under this chapter, including, without
limitation, interest to maturity or earlier redemption date,
redemption premiums and costs of the type enumerated in clause
(5) of this section; and
(11) to make and execute contracts and other instruments
necessary or convenient to the exercise of any of the powers
granted in this chapter.
As added by Acts 1979, P.L.47, SEC.1. Amended by Acts 1981,
P.L.62, SEC.6.