§ 42-55-7. Powers relative to purchase of and sale to mortgage lenders of loans — Loans to mortgage
lender.
The corporation shall have all the powers necessary or convenient to carry out and
effectuate the purposes and provisions of this chapter, including the following powers
in addition to others granted in this chapter:
(1) To invest in, purchase or to make commitments to purchase, and take assignments from
mortgage lenders, of notes and mortgages evidencing loans for the construction, rehabilitation,
installation of energy saving improvements to, purchase, leasing, or refinancing of
housing for persons and families of low and moderate income or healthcare facilities
in this state upon the terms set forth in § 42-55-10;
(2) To make loans to mortgage lenders under terms and conditions requiring the proceeds
to be used by those mortgage lenders for the making of new residential mortgages or
healthcare facilities upon the terms set forth in § 42-55-10;
(3) To make commitments to purchase, and to purchase, service and sell federally insured
mortgages, and to make loans directly upon the security of a mortgage, provided the
underlying mortgage loans shall have been made and shall be continued to be used solely
to finance or refinance the construction, rehabilitation, purchase, or leasing of
residential housing for persons and families of low and moderate income or healthcare
facilities in this state;
(4) To sell, at public or private sale, with or without public bidding, any mortgage or
other obligation held by the corporation;
(5) Subject to any agreement with bondholders or note holders, to collect, enforce the
collection of, and foreclose on any collateral securing its loans to mortgage lenders
and acquire or take possession of the collateral and sell it at public or private
sale, with or without public bidding, and otherwise deal with such collateral as may
be necessary to protect the interest of the corporation therein;
(6) To make or participate in the making of mortgage loans to persons of low or moderate
income and owners of property subject to tax sale for the purpose of extinguishing
tax liens, redeeming tax titles or preventing loss of property due to nonpayment of
taxes. Any loan made pursuant to this subsection may be secured by a mortgage or otherwise,
shall be repaid, shall bear interest and shall be upon any terms and conditions that
may be determined by the corporation;
(7) To acquire at tax sales liens on one to four (4) family residential properties, to
hold the lien while endeavoring to assist the property owner with retaining ownership,
to hold and sell the property where consistent with the purpose of the corporation
to encourage home ownership, particularly by low-income persons, productive and beneficial
use of property, and other purposes of the corporation, and to adopt rules and regulations
necessary to carry this program into effect.