Bill Text: AZ SB1039 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: Technical correction; barber licenses; display
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2011-03-23 - Referred to House RULES Committee [SB1039 Detail]
Download: Arizona-2011-SB1039-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SENATE BILL 1039 |
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AN ACT
amending section 41-3901, Arizona Revised Statutes; amending title 41, chapter 37, by adding article 1.1, Arizona Revised Statutes; relating to the home certificate program.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-3901, Arizona Revised Statutes, is amended to read:
41-3901. Definitions
In this article and article 1.1 of this chapter, unless the context otherwise requires:
1. "Agreement" means any loan or other agreement, contract, note, mortgage, deed of trust, trust indenture, lease, sublease or other such instrument entered into by the authority.
2. "Authority" means the Arizona housing finance authority.
3. "Board" means the board of directors of the authority.
4. "Bonds" means any bonds issued pursuant to this article.
5. "Certificates" means mortgage credit certificates or other certificates and instruments issued by the authority.
6. "Costs":
(a) Means all costs incurred in the issuance of bonds or certificates, including insurance policy, credit enhancement, legal, accounting, consulting, printing, advertising and travel expenses, plus any authority administrative fees.
(b) May include interest on bonds issued pursuant to this article for a reasonable time before and during the time the proceeds are used.
7. "Federal agency" means the United States or any agency or agencies of the United States.
8. "Housing facility":
(a) Means any work or undertaking that is designed and financed pursuant to this article for the primary purpose of providing decent, safe and sanitary dwelling accommodations.
(b) Includes any buildings, land, equipment, facilities or other real or personal property the board finds necessary to ensure required occupancy.
9. "Trustee" means any bank or trust company with authority to exercise trust powers in this state.
Sec. 2. Title 41, chapter 37, Arizona Revised Statutes, is amended by adding article 1.1, to read:
ARTICLE 1.1. HOME CERTIFICATE PROGRAM
41-3921. Home certificate program; audit
A. The home certificate program is established and shall be administered by the authority.
B. The program shall consist of the following:
1. Execution and issuance of timeout deeds of trust and notes to eligible homeowners in exchange for lien rights on the property in favor of the authority. No other lien rights accrue on the real property pursuant to this article.
2. Issuance of home certificates and other certificates representing the financial interests of the original borrower, original lender, insurer or guarantor and subsequent investors or lenders, as well as the financial interest of the program administrator and the program insurance fund. Certificates and other securities issued pursuant to the program shall not be secured by lien rights or other security against the real property.
3. Assessment of a fee on the amount of the home certificate to be divided between the program insurance fund and the program administrator for the purposes of establishing and administering the fund and establishing and administering the program.
4. Execution of exchanges of issued and new home certificates as appropriate for managing the monthly payment on existing or new timeout deeds of trust and related instruments.
C. Within five years after the effective date of this section, the program and program insurance fund established by this article are subject to a special audit by the auditor general as prescribed by section 41‑1279.03.
41-3922. Program insurance fund; program termination
A. The program insurance fund is established consisting of fees paid by users of the home certificate program, gifts, grants and donations. Monies in the program insurance fund are held in trust for the benefit of the lenders, borrowers and homeowners who are participating in the program and for the purchasers of the securities issued by the authority pursuant to this article.
B. This state and any of its agencies shall not have a claim on the assets or proceeds of the program insurance fund for the duration of the program. Notwithstanding section 41-3102, on redemption of all certificates issued by the authority, the program shall terminate and any proceeds remaining after payment of all debts and liabilities of the program shall be transferred for deposit in the state general fund.
41-3923. Program administration; rules
A. The authority shall:
1. Administer the program either directly or through the use of a program administrator.
2. Adopt rules to implement and administer the program.
3. Issue the timeout deeds of trust and notes and other debt instruments and securities reasonably necessary for the operation of the program and as otherwise provided by law.
B. The authority shall provide for, and the program shall include, at least the following:
1. Qualifications for eligible homeowners. Eligible homeowners shall be limited to those persons who are current on their existing mortgage or deed of trust at the time they apply for the program.
2. Terms for the timeout deeds of trust and any related notes. A deed of trust shall include a requirement that the deed of trust and note are recourse obligations of the homeowner and that personal liability and a deficiency obligation may lawfully accrue and be enforceable against the homeowner for a failure to pay. A deed of trust and note also may require that any second or subsequent lienholders under the original obligations have waived their lien rights by operation of law and by the issuance of the timeout deed of trust and note.
3. Provisions in the timeout deeds of trust that permit the authority to act as trustee or to delegate to a trustee with a power of sale as otherwise prescribed in title 33, chapter 6.1.
