Sec. 8-100-4. Borrowers

(a) The head of a family of moderate financial resources may be certified as an eligible borrower upon application, provided the commissioner shall find that: (1) He and his family are residents of Connecticut and were displaced from their dwelling accommodations by the floods of August and October, 1955; (2) his prospective and continuing yearly income, together with the prospective and continuing yearly incomes of the members of his family, is less than forty-five hundred dollars, plus six hundred dollars for each dependent member of his family; (3) his available net cash worth is less than thirty-five hundred dollars; (4) he and his family lack the amount of financial resources which are necessary to enable them to purchase or construct a single family moderate cost dwelling house suitable for long-term occupancy by his family without state financial assistance as provided by part IV of chapter 128 of the general statutes.

(b) Each eligible borrower shall have a general credit standing satisfactory to the commissioner.

(c) Each eligible borrower shall establish that the periodic payments required by the mortgage bear a proper relation to his present and anticipated income and expenses.

(d) Each eligible borrower shall establish that, after a first mortgage has been recorded, the mortgaged property will be free and clear of all liens other than such first mortgage, and that there will not be outstanding any other unpaid obligations contracted in connection with the mortgage transaction or the purchase of the mortgaged property, except obligations which are secured by property or collateral owned by the borrower independently of the mortgaged property.

(e) In granting loans, the commissioner shall give preference to eligible borrowers in accordance with their needs. All applications for loans shall be filed with the Public Works Department, Housing Division, and all such applications shall be processed as rapidly as possible in the order in which they are received.

(See. G.S. § 8-99.)