CHAPTER 699

SENATE BILL NO. 564

AN ACT TO AMEND SECTION 4074, TITLE 31, DELAWARE CODE, RELATING TO COMMITMENT AND DISBURSEMENT OF LOAN PROCEEDS AND SECURING LOANS TO MORTGAGE LENDERS WITH MORTGAGES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend §4074, Title 31, Delaware Code, by striking subsection (d) in its entirety and substituting in lieu thereof a new subsection (d) to read as follows:

"(d) The agency shall require as a condition of each loan to a mortgage lender that such mortgage lender shall on or prior to the one hundred and twentieth day following the receipt of the loan proceeds have entered into written commitments to make new residential mortgages having a stated maturity of not less than 15 years from the date thereof for twenty-five percent (25%) of the loan, by the two hundred and seventieth day for seventy-five percent (75%) of the loan, and by the three hundred and sixth-fifth day for one hundred percent (10007o) in any aggregate principal amount equal to the amount of such loan; and shall further require that such loan proceeds be disbursed on or prior to the two hundred and tenth day following the receipt of the loan proceeds for twenty-five percent (25%) of the loan, by the three hundred and sixty-fifth day for seventy-five percent of the loan, and by the four hundred and fifty-fifth day for one-hundred percent (100%) in any aggregate principal amount equal to the amount of such loan."

Section 2. Amend §4074(e), Title 31, Delaware Code, by adding thereto immediately after paragraph (iv) a new paragraph (v) to read as follows:

"(v) any other mortgages secured by real estate on which there is located a residential structure, the collateral value of which shall be determined by regulations issued from time to time by the agency;"

Section 3. Amend §4074(e), Title 31, Delaware Code, by redesignating present paragraph (v) as new paragraph (vi), and by redesignating each succeeding paragraph accordingly.

Approved August 5, 1976