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findings thereon, shall be filed in the office of the clerk where the certificate of appointment for such member is filed. Section 8. Powers of housing finance authorities. --A housing finance authority shall constitute a public body corporate and politic, exercising the public and essential governmental functions set forth in this act, and shall exercise its power to borrow only for the purpose as provided herein: (1) To sue and be sued, to have a seal and to alter the same at pleasure, to have perpetual succession, to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the housing finance authority, and to make and from time to time amend and repeal bylaws, rules, and regulations, not inconsistent with this act, to carry into effect the powers and purposes of the housing finance authority. (2) To purchase or make commitments to purchase or to make loans for such purpose, and to take assignments of, from lending institutions acting as a principal or as an agent of the housing finance authority, mortgage loans and promissory notes accompanying such mortgage loans, including federally in- sured mortgage loans or participations with lending institutions in such promissory notes and mortgage loans for the construction, purchase, recon- struction, or rehabilitation of the qualifying housing development or portion thereof; provided that the proceeds of sale or equivalent moneys shall be re- invested in mortgage loans. (3) To make loans to lending institutions under terms and conditions re- quiring the proceeds thereof to be used by such lending institutions for the making of new mortgages for any qualifying housing development, or portion thereof, located wholly or partially within the area of operation of such housing finance authority. Prior to making a loan to a lending institution which makes such loans or provides such financing, the lending institution must agree to use the proceeds of such loan within a reasonable period of time to make loans or to otherwise provide financing for the acquisition, construction, reconstruction, or rehabilitation of a housing development or portion thereof, and the housing finance authority must find that such loan will assist in alleviating the shortage of housing and of capital for invest- ment in housing within its area of operation. (4) To invest, at the direction of the lending institution, any funds held in reserves or sinking funds or any funds not required for immediate dis- bursement in property or securities in which lending institutions may legally invest funds subject to their control.