SECTION 330:10-7-2. Disbursements and transfers

(a)   It should be understood that the federal legislation does not distinguish between the commitment period and the funding period.

(b)   Funds are to be disbursed for the acquisition of mortgage loans within the periods established herein.

(1)   Funds are to be disbursed in a non-target area within twelve (12) months from the date of delivery of the bonds.

(2)   Funds are to be disbursed in target areas within twelve (12) months from the bond delivery date.

(c)   To facilitate the maximum utilization of lendable funds and to facilitate the use of funds in the designated target areas, the Agency has provided for the transfer of funds after 60 days from the date funds are available for mortgage loans. The Agency and the Trustee will act as the clearing house for all transfers from and to qualified participants in the program. Upon receipt of written notice that participants desire to obtain additional funds for originations with a target area, then the Agency and the Trustee shall endeavor to locate funds to meet its needs. Each written notice or request for funds shall be accompanied by a corporate check in an amount equal to 1.5% of the amount requested. The Agency and the Trustee shall maintain books and records, as to the availability of funds to be committed to target areas. In addition, the Agency and Trustee shall establish a procedure for transfer in order to maximize the use and to insure the fair distribution of available funds.