94- 457 C.M.R. ch. 107, § 10

Current through 2024-46, November 13, 2024

Section 457-107-10 - CAPITAL RESERVE FUND OPTIONS

Pursuant to the capital reserve contract or other documentation, the Authority will require the trustee to notify the Authority of any default by the borrower. After passage of a period of time specified in the capital reserve contract or other documentation and upon performance of such obligations by the trustee as the Authority may by contract require, the Authority may require that it have the following options:

A. Cure one or more defaults up to a stated limit;

B. Purchase the entire loan on the terms specified in the contract and call the applicable bonds;

C. Arrange for payment of the remaining balance of the capital reserve fund liability, either in one lump sum or over the original term of the defaulted loan;

D. Such other options as the contract or documentation may provide.

94- 457 C.M.R. ch. 107, § 10