§ 2405-e. Purchase of employer assisted forward commitment mortgages.
(1) In accordance with the authority set forth in section twenty-four
hundred five-b of this title, the agency may purchase employer assisted
forward commitment mortgages from banks at such prices and upon such
terms and conditions as it shall determine. In conducting its program of
purchasing employer assisted forward commitment mortgages, the agency
shall be governed by the provisions of section twenty-four hundred
five-b of this title. The board of directors of the agency shall
establish from time to time maximum income limits of persons eligible to
receive such mortgages, which income limits shall not exceed the latest
maximum income limits permitted under the Internal Revenue Code of 1986,
as amended, for mortgages financed by mortgage revenue bonds. An
employer may develop additional qualifications for eligible employees
beyond those qualifications provided for in this section, provided that
such qualifications are non-discriminatory and are pre-approved by the
agency; the employer, however, shall remain solely responsible for
determining and insuring the legality of such qualifications and may not
rely on any agency reviews, approvals, legal opinions or statements.

(2) To participate in an employer assisted forward commitment mortgage
program, an employer must be a corporation, partnership, or sole
proprietorship which maintains an office in the state and must satisfy
the requirements set forth in guidelines established by the agency.

(3) For any employer assisted forward commitment mortgage, the maximum
loan-to-value ratio shall be established by the agency, provided that
such loan shall not exceed one hundred percent of the appraised value of
the mortgaged premises. Reasonable closing costs for the loan may be
amortized over the life of the loan, provided that the final loan amount
does not exceed one hundred percent of the appraised value of the
mortgaged premises.

(4) The agency shall require any employer participating in the
employer assisted forward commitment mortgage program to guarantee to
pay up to twenty percent of the total outstanding mortgage indebtedness
(as determined by the agency) for each employee who obtains a mortgage
loan under the provisions of this section and who defaults on such
mortgage loan during the first seven years of such loan, regardless of
whether such borrower is an employee of such employer at the time of the
default.