§ 36.42 ADDITIONAL POWERS.

   In addition to powers which the municipality may now have, the municipality shall have all powers necessary to accomplish the purposes of §§ 36.40 through 36.50 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 municipality or 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)   (a) 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:

            1. The time within which lending institutions must make commitments and disbursements for home mortgages;

            2. The location and other characteristics of homes to be financed by home mortgages;

            3. The terms and conditions of home mortgages to be acquired;

            4. The amounts and types of insurance coverage required on homes, home mortgages and bonds;

            5. The representations and warranties of lending institutions confirming compliance with such standards and requirements;

            6. Restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions;

            7. 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; and

            8. 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;

         (b)   However, no lending institution shall charge and retain an origination fee in excess of 3% of the principal amount of any such home mortgage; and no home mortgage shall exceed a % loan-to-value ratio.

      (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 such purchase or loan, of evidence satisfactory to the municipality of the ability and intention of such lending institution to make home mortgages, and the submission, within the time specified by the municipality for making disbursements for home mortgages, of evidence satisfactory to the municipality of the making of home mortgages and of compliance with any standards and requirements established by the municipality.

   (B)   (1)   Bonds. The municipality shall have the power:

         (a)   To issue bonds to defray, in whole or in part:

            l. The costs of purchasing, or funding the making of, home mortgages;

            2. The costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting and marketing services incurred in connection with the issuance and sale of such bonds, including bond and interest reserve accounts and trustee, custodian, and rating agency fees; and

            3. Such other costs as are reasonably related to the foregoing.

         (b)   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 such costs.

         (c)   To pledge any revenues and receipts to be received from any home mortgages to the punctual payment of bonds authorized under §§ 36.40 through 36.50, and the interest and redemption premiums, if any, thereon.

         (d)   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.

         (e)   To sell and convey any home mortgages for such prices and at such times as the governing body of the municipality may determine.

         (f)   To issue its bonds to refund in whole or in part at any time bonds theretofore issued by the municipality under authority of §§ 36.40 through 36.50.

         (g)   To make and execute contracts and other instruments necessary or convenient to the exercise of any of the powers granted herein.

      (2)   Bonds shall not be issued under the powers granted by §§ 36.40 through 36.50 unless such bonds are rated "A" or better by one of the nationally recognized rating agencies.

(Ord. 6606, passed 10-17-78)