Utah Code 63H-8-302. Corporation — Additional powers

63H-8-302. Corporation — Additional powers.

(1)

To accomplish the declared purposes of this chapter, the corporation has the following powers:

Terms Used In Utah Code 63H-8-302

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means the Utah Housing Corporation created by Section 63H-8-201, which, prior to July 1, 2001, was named the Utah Housing Finance Agency. See Utah Code 63H-8-103
Financial assistance: includes :

(a)	a loan, whether interest or noninterest bearing, secured or unsecured;

(b)	a loan that converts to a grant upon the occurrence of specified conditions;

(c)	a development loan;

(d)

a grant;

(e)

an award;

(f)	a subsidy;

(g)	a guarantee;

(h)	a warranty;

(i)

a lease;

(j)	a payment on behalf of a borrower of an amount usually paid by a borrower, including a down payment;

(k)	any other form of financial assistance that helps provide affordable housing for low and moderate income persons; or

(l)

any combination of Subsections (5)(a) through (k). See Utah Code 63H-8-103

Housing development: means a residential housing project, which includes residential housing for low and moderate income persons. See Utah Code 63H-8-103

Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}

Interest rate contract: means an interest rate exchange contract, an interest rate floor contract, an interest rate ceiling contract, or another similar contract authorized in a resolution or policy adopted or approved by the trustees. See Utah Code 63H-8-103

Low and moderate income persons: means individuals, irrespective of race, religion, creed, national origin, or sex, as determined by the corporation to require such assistance as is made available by this chapter on account of insufficient personal or family income taking into consideration factors, including:

(a)	the amount of income that persons and families have available for housing needs;

(b)	the size of family;

(c)	whether a person is a single head of household;

(d)	the cost and condition of available residential housing; and

(e)

the ability of persons and families to compete successfully in the normal private housing market and to pay the amounts at which private enterprise is providing decent, safe, and sanitary housing. See Utah Code 63H-8-103

Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

Mortgage: means a mortgage, deed of trust, or other instrument securing a mortgage loan and constituting a lien on real property (the property being held in fee simple or on a leasehold under a lease having a remaining term, at the time the mortgage is acquired, of not less than the term for repayment of the mortgage loan secured by the mortgage) improved or to be improved by residential housing, creating a lien that may be first priority or subordinate. See Utah Code 63H-8-103

Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

Rehabilitation: includes the reconstruction, rehabilitation, improvement, and repair of residential housing. See Utah Code 63H-8-103

Residential housing: means a specific work or improvement within the state undertaken primarily to provide dwelling accommodations, including land, buildings, and improvements to land and buildings, whether in one to four family units or multifamily units, and other incidental or appurtenant nonhousing facilities, or as otherwise specified by the corporation. See Utah Code 63H-8-103

State: means the state of Utah. See Utah Code 63H-8-103

Trustee: A person or institution holding and administering property in trust.

(a)

to purchase mortgage loans originated by mortgage lenders or local public bodies made for the purpose of financing the construction, development, rehabilitation, refinancing, or purchase of residential housing for low and moderate income persons;

(b)	to make mortgage loans and to provide financial assistance to housing sponsors for the purpose of financing the construction, development, rehabilitation, refinancing, or purchase of residential housing for low and moderate income persons;

(c)

to make mortgage loans and provide financial assistance to housing sponsors for the purpose of financing the operations of a housing development that are necessary or desirable to enable the housing development to remain available as residential housing for low and moderate income persons, whether or not the housing development has been financed by the corporation;

(d)	to provide financial assistance to any housing authority created under 4, which housing authorities may enter into commitments for and accept loans for a housing project as defined in Section 35A-8-401; and

(e)	to make mortgage loans and to provide financial assistance to low and moderate income persons for the construction, rehabilitation, refinancing, or purchase of residential housing.

(2)	The corporation may issue bonds to purchase loans under Subsection (1)(a) only after a determination by the corporation that the loans are not otherwise available upon reasonably equivalent terms and conditions from private lenders.

(3)	Loans for owner-occupied housing made under Subsection (1)(a) may not include a penalty for prepayment.

(4)

The corporation shall make rules or adopt policies and procedures to govern the activities authorized under this section, including:

(a)	procedures for the submission of requests or the invitation of proposals for the purchase and sale of mortgage loans and the making of mortgage loans;

(b)	rates, fees, charges, and other terms and conditions of originating or servicing mortgage loans in order to protect against a realization of an excessive financial return or benefit by the originator or servicer;

(c)	the type and amount of collateral, payment bonds, performance bonds, or other security to be provided for construction loans made by the corporation;

(d)	the nature and amounts of fees to be charged by the corporation to provide for expenses and reserves of the corporation;

(e)	procedures allowing the corporation to prohibit persons who fail to comply with the rules of the corporation with respect to the operations of a program of the corporation from participating, either directly or indirectly, in the programs of the corporation;

(f)	the terms and conditions under which the corporation may purchase and make mortgage loans under each program of the corporation;

(g)	the terms and conditions under which the corporation may provide financial assistance under each program of the corporation;

(h)	the terms and conditions under which the corporation may guarantee mortgage loans under each program of the corporation; and

(i)	any other matters related to the duties or exercise of powers under this section.

(5)

(a)

(i)	The trustees of the corporation shall elect the directors, trustees, and members, if any, of each subsidiary.

(ii)	Service by a trustee of the corporation in any of these capacities does not constitute a conflict of interest for any purpose.

(iii)

The corporation may delegate any of its powers and duties under this chapter to any subsidiary.

(iv)	Subsidiaries shall constitute legal entities separate and distinct from each other, the corporation, and the state.

(b)

A note, bond, and other obligation of a subsidiary shall contain on its face a statement to the effect that:

(i)	the subsidiary is obligated to pay the note, bond, or other obligation solely from the revenues or other funds of the subsidiary;

(ii)	neither the corporation, nor the state, nor any of its political subdivisions is obligated to pay the note, bond, or other obligation; and

(iii)

neither the faith and credit nor the taxing power of the state or its political subdivisions is pledged to the payment of principal, the redemption price of, or the interest on, the note, bond, or other obligation.

(c)	Upon dissolution of a subsidiary of the corporation, any assets shall revert to the corporation or to a successor to the corporation or, failing this succession, to the state.

(6)

(a)

The corporation may, with the approval of the state treasurer:

(i)	enter into interest rate contracts that its trustees determine are necessary, convenient, or appropriate for the control or management of debt or for the cost of servicing debt; and

(ii)	use corporation funds to satisfy its payment obligations under those contracts.

(b)	An interest rate contract may contain payment, security, default, termination, remedy, and other terms and conditions that the trustees consider appropriate.

(c)	An interest rate contract and funds used in connection with an interest rate contract may not be considered a deposit or investment.

Amended by Chapter 164, 2015 General Session
Renumbered and Amended by Chapter 226, 2015 General Session

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