§ 8. Guarantee of loans. (a) The fund is authorized to guarantee
repayments of a loan made by a lending institution to provide funding
for small business or housing project as defined herein, not to exceed
eighty per centum of the principal amount of the obligation, upon such
terms and conditions as the fund may prescribe, provided that the
aggregate amount of the unpaid balance of all obligations so guaranteed
and outstanding at any one time shall not exceed one million dollars
during the first fiscal year of operations of the fund, and in any
succeeding fiscal year, five times the average annual balance in the
loan guarantee fund for the preceding fiscal year, and provided further,
however, that the total potential liability of the fund to a lending
institution on behalf of any one borrower shall not exceed one hundred
fifty thousand dollars.

(b) The fund is also authorized to guarantee repayments of loans made
by a lending institution to a purchaser of either a condominium unit in
a multiple dwelling organized under the condominium act, or shares of
stock in a cooperative corporation which owns a multiple dwelling, where
such purchaser intends to reside in such condominium unit or such
cooperatively-owned multiple dwelling. The amount of such guarantee
shall not exceed the lesser of eighty per centum of the purchase price
of the unit or of the shares of stock allocable to the unit, as the case
may be, or $25,000; and the term of the guarantee shall not exceed
twenty-five years. No loan shall be guaranteed if interest thereon
exceeds the legal rate. The aggregate amount of the unpaid balance of
all obligations guaranteed under this subdivision and subdivision (a)
hereof shall not exceed one million dollars during the first fiscal year
of operation hereunder and in any succeeding fiscal year, five times the
average annual balance in the loan guarantee fund for the preceding
fiscal year hereunder.