§ 13. Contracts of guarantee; waivers. (a) The fund shall arrange by
contract with the lending institution or the borrower or both to
safeguard the interest of the fund in the event of default by the
borrower, including, at the discretion of the fund, provision for notice
to the fund of default by the borrower, for foreclosure or other
realization upon any security for the loan, for the time and conditions
for payment to the lending institution by the fund of the amount of any
loss to the lending institution guaranteed by the fund, and for the
disposition of the proceeds realized from any security for the loan
guaranteed. When it appears desirable for a temporary period upon
default or threatened default by the borrower, the fund may itself make
payments of installments of principal or interest or both, to the
lending institution, and of taxes and insurance, which payments shall be
repaid, under such conditions as the fund may prescribe, and the fund
may also agree to revised terms of financing when such appear prudent.

(b) Upon request of the lending institution, the fund may at any time,
under such equitable terms and conditions as it may prescribe, consent
to the release of the borrower from his liability under the loan or
consent to the release of parts of any secured property from the lien of
the lending institution.