Section 220.306  Mortgage Pool Insurance

The Authority may obtain one or more insurance policies covering all of the Mortgage Loans.  The policy may insure the Authority against losses arising from a event of default under any Mortgage Loan covered by the policy in an amount equal to the unpaid principal balance of and accrued interest on the Mortgage Loan and customary fees and expenses paid by the Authority to preserve and protect the mortgaged premises and to foreclose or otherwise dispose of such premises, such as real estate taxes, hazard and private insurance premiums, and foreclosure expenses, less the amounts received by the Authority under any other insurance policy on the Mortgage Loan or from disposition of such premises or substantially similar benefits.  The total amount of claims payable under the policy may be limited to an amount which is not less than 10% of the original aggregate principal amount of the Mortgage Loans covered thereby or such lower percentage as the Authority may from time to time deem appropriate.