Montana Code 90-6-603. Veterans’ home loan mortgage program created — use of coal tax trust fund money
90-6-603. Veterans’ home loan mortgage program created — use of coal tax trust fund money. (1) There is a Montana veterans’ home loan mortgage program under the direction and management of the board for eligible veterans who are first-time home buyers.
Terms Used In Montana Code 90-6-603
- Board: means the board of housing provided for in 2-15-1814. See Montana Code 90-6-602
- Eligible veteran: means an individual who is a Montana resident and who:
(a)is or has been a member of the Montana national guard;
(b)is or has been a member of the federal reserve forces of the armed forces of the United States, serving pursuant to Title 10 of the United States Code;
(c)is serving or has served on federal active duty pursuant to Title 10 of the United States Code;
(d)is an unremarried spouse of an individual who was otherwise an eligible veteran and was killed in the line of duty;
(e)is an eligible veteran as defined by the board pursuant to 90-6-605(2); or
(f)if previously a member of the armed forces, was discharged under honorable conditions. See Montana Code 90-6-602
- 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
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan: means a loan for the purchase of real property with any improvements located within this state that is to be used for residential purposes and that is based upon a written instrument approved by a federal agency and that is written in the form of a trust indenture. See Montana Code 90-6-602
- Participating financial institution: means a corporate lender or other loan originator approved by the board for originating and servicing loans pursuant to this part. See Montana Code 90-6-602
- program: means the program created in 90-6-603. See Montana Code 90-6-602
- trust fund: means the trust fund created pursuant to Article IX, section 5, of the Montana constitution. See Montana Code 90-6-602
(2)The board of investments shall allow the board to administer $50 million of the permanent coal tax trust fund for the purpose of the program. Until the board uses money in the trust fund to purchase a mortgage loan from a participating financial institution pursuant to this part, the money under the administration of the board must remain invested by the board of investments. As a loan made pursuant to this part is repaid, the principal payments on the loan must be deposited in the trust fund until all of the principal of the loan is repaid. Interest received on the loan may be used by a participating financial institution and the board, in amounts determined by the board in accordance with 90-6-605, to pay for the origination and servicing of a loan by a participating financial institution and to pay the reasonable costs of the board for the administration of the program. After payment of associated expenses, interest received on the loan must be deposited into the trust fund.
(3)Interest on a home mortgage loan made pursuant to this part must be charged at 1% less than the federal national mortgage association’s delivery rate or 1% lower than the lowest interest rate charged by the board for the purposes of other home loan mortgage programs administered by the board, whichever is less. If the federal national mortgage association’s rate becomes unavailable, the board shall use another similar rate for the purposes of this subsection. The board may not make a direct loan to an eligible veteran.